New-York tribune., 1905-02-17
SOLUTION OF GAS PROBLEM? |
REDUCTION IN PRICE.
Plan to Make Price 70 Cents IN
FiUe Years.
[nY rELEeRApH 40 rHE nnIBuNE.l

Albany Feb 16-It is said at the Capitol that
the solution of the gas problem has been touhd
in the reduction OF the price of gas to 90 cents
thousand at the rate of FIVE cents each year ior
five years. Legislative leaders will go 10 Ne"-
York tomorrow to confer with Ex-Governor
Oden in relation to bill covering such a re-
duction in New-York
Attorneys representing the gas corporations IN
and near New-York attended the hearing on
Senator Fitzgerald's bill They all evaded ques-
tions put by Senator Malby. who wanted 70
know the exact cost OF the production Of gas
and the various items which make up the cost.
The companies represented were the ConsoN-
dated. Brooklyn Union Newtown, Bronx and
the New-York and Queens.
Representatives of the corporations declared
that the Fitzgerald bill would drive every gas
company out of business. and that it would be
virtually con1scation. They also warned the
committee that they would fight such a law and
test it's constitutionality.
"This bill is a blow in the dark" said William
N. Dykeman. of the Brooklyn Gas Company.
There is no testimony before this committee
that the companies in New-York could live un-
der 7O-cent law 1t is strange that the legis-
lature would compel companies to charge only
40 cents in New-York and allow the rest of the
State to charge 81 80" Mr.. Dykeman had no
figures to show the cost of furnishing gas or to
show either the gross or net income Of his COM
pany.
These are matters of some Importance" SEN
ator Malby remarked. What rate do you pay
stockholders
Five per cent on bonds and 10 per cent on
Stock was the reply.
Has the company any surplus?" Senator
Malby asked.
mo cash surplus" Mr.. Dykeman answered.
THE company cannot pay larger dividend, II
that is what you mean"
Referring 10 the same subject. Senator Malby
asked Charles F. Matheson, representing the
Consolidated Gas Company, why it was that
the stock of the corporation was constantly IN
During the last few years we have been en-
joying merely our share Of the general prosperi-
ty," Mr.. Mathesoa said. when our stock goes
to 200 it is done by some boom in Wall Street,
but does not show increase in real value Ten
per cent is not too much for an industrial con-
Germ to make"
Senator Page said he understood that water
was important factor in New-York gas as
coal
While E. H Rosenquest was urging the COM
mittee to exempt the Bronx Lighting Company
from the provisions of the bill on the ground
that the business of the company would be
ruined, Senator Wilcox asked If any city
charged less than 81 a thousand for gas. Mr..
Rosenquest said 81 was the lowest figure as far
as he knew.
we have 6O-cent gas in Auburn" Senator
Wilcox said
The company does not pay dividends" was the
reply
but you can't get any OF the Stock the Sen
ator remarked.
IF any gas manufacturer can teach us how to
make 60-cent gas at profit. he can make his
everlasting fortune in New-York," Mr.. Rosen-
quest added.
W. A. Defort, speaking for the Municipal
Ownership League, urged the committee TO send
experts 10 New-York to study the gas situation.
Let it be recorded" Senator Malby said
that the municipal authorities of New-York
have been notified of this hearing and that on
call representing the city government
responded
Chairman Goodsell said the hearing would be
continued next Wednesday afternoon.