The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-04-10
TO SUBPOENA CHAS. T. MURPHY
GAS COMMITTEE ALSO TO CALL
MAYOR, CIRCUIT AND OAKLEY.

All This week. Probably, 20 Inquire About
the Remsen Gas bin the Legislature
Passed, the Astoria Plant Contract
and the II ghting Contracts OF Last Year
Il "a the intention Of the gas investigating
committee 10 subpoena Charles r. Murphy
this week as a witness. Mr.. Murphy has
said that he will give the committee any
information he has about gas or electricity,
which, he says, isn't very much.
According to Senator Stevens, the sessions
Of the committee this week are to be devoted
principally TO the city lighting contracts.
Mr.. Murphy isn't an officer Of the city but
the committee thinks he may know some
thing about these contracts. IL IL also
desired 70 question him concerning the
Astoria gas plant Of the Consolidated Gas
Company. II has been asserted that Mr..
Murphy's contracting company has the
contract for this and that he would have
been glad 10 see the Remsen gas bill passed.
In addition TO Mr.. Murphy, Senator Stevens
said last night, Mayor Mcclellan, Comp
troller Grout and Commissioner Oakley
would be served with subpGnas and their
testimony taken, probably before the end
Of the week In connection with the city's
lighting contracts.
The committee said Senator Stevens
last night, 'up to the present time has
made very satisfactory progress, and II IL
largely due TO the willingness OF the COM
panies TO furnish us with the information
desired. the frankness Of the witnesses
subppnaed and the manner In which Mr..
HUI ghes has handled the investigation.
We have established that the Conso lidated
Possesses. through the ownership Of the
shares Of stocks and bonds Of the various
gas and electic lighting companies In New
York, an absolute monopoly. We have
also Established that all OF tbe SUBSIDIARY
companies owned by the Conso lidated
have been apparently very much over
ca pitalized; that the replacement cost in
many instances would not be equal 20 the
outstanding bond issues of the company,
and that entries upon the books OF the
individual companies representing assets
show property which has absolutely no
value or existence.
I'VE have also learned that the manu-
featuring companies were manufacturing
and ceiling gas TO the Consolidated Tor
price less than the Consolidated was manu-
featuring gas for at its own works. From
the evidence thus obtained Il Is evident
that the price OF gas to the Consolidated
in its holders Is about 80 TO 81 cents. The
cost Of distribution TO be added TO the cost
OF pTOuuCllOu N a uldNNoi ySN W 10 NStNA
mined. / believe that when the Astoria
plant is in operation large economies and
a lower cost OF manufacture should result.
Senator Stevens said that the electric
lighting situation seemed to be more in
tAoate. While Mr.. Stevens would not say
30 in 30 many words, II was learned that
the committee Is Of the opinion that bill
should be introduced fixing the maximum
cost at 10 cents the kilowatt hour, It having
been shown, according to members Of the
committee, that the cost delivered TO the
consumer Ia about six cents, Regarding
the oity's interest in prices Senator Stevens
said last night;
We only touched upon the city lighting
Yesterday, but il developed that, notwith-
standing the fact that the city consumes
an enormous amount OF current for the
lighting Of the streets and use in it's buildings
for power and lighting, It is rated as
private consumer at retail rates, but on
account Of the amount Of current used II
gets the extremely low price OF - cents.
That il only few cents less than the maxi
mum rate charged TO the smallest consumer.
IL naturally occurred 10 me that this really
Is a higher price than either the city was
justified In paying or the company In oharg-
ing.
electric conduits will furnish an interesting
study can hardly understand why the
city has not awaited itself Of its right to pur-
chase these conduits, as II has the right
TO do at cost and 10 per cent.
The committee IL TO hold a session to-day
and the next one Wednesday. II may
keep up its meetings for two or three weeks,
although il hopes 10 report before the
IagislatIre adiOurns.