New-York tribune., 1905-04-10
WORK OF GAS PROBERS.
LONGER TIME NEEDED.
Committee viii Not Complete In
quiry Before APrI 22.

Senator Stevens. chairman OF the Legislative. M.
investigating committee. announced yesterday that
the committee would be in session for lonzs-
period than first expected He said that the Wo-r
would not be completed before April 2. This wU
leave a week ten days TO report to the Isri1.
Iature As told in The Tribune yesterday Msvo.
Mcclellan. Charles F. Murphy. Controller Gro1t
and others are under subpoena. and win be called
when wanted.
In discussing the investigation and ts rssult.
Senator Stevens declared that he was not oppo..1
to mOnOpOlies properly regulated and reatrice~1
but that when monopoly becOmes oppresuiv.
through eXoFbltant charges when it fails "A
serve the public in a proper and eGlcient mama
IT should either Be subjected 70 wholesome reFuls
tiOn or ii should be compelled to face competition
The Senator also believes. from comprehensivs
inquiry into the subject. that when the Astoria
plant Is completed and in operation economies ana
a lower cost OF manufacture should result. Hs
regards the electric situation even more intr-
cate than shat OF the gas companies sn1 believe,
that the ownership and operation Of the electric
conduits will furnish interesting study He IA
unable to understand why the city has not avaIlsi
itself % it's right 20 purchase these conduits a. i,
could At cost and 10 per cent II il should DO this
Senator Stevens maintains. The city would IN
doubtedly have opportunity TO prevent the
continuance of a monopoly 50 far as ths electric
Hghting is concerned.
Referring the work Of the committee. Senator
Stevens said;
satisfactory progress. and it is largely due to thu
willingness OF the companies TO supply with
the information desired and thf frankness OF the
witnesses subpoenaed. The mastery manner in
which Mr.. Hughes. the attorney for tae com
mittee has handled the investigation has also en-
abIed the committee arrive at facts. figures and
conditions which lead to believe that it viii not
take more than two or three weeks longer TO com
plete the inquiry.
In our sessions we have established the fact that
frT1Ta
the ownership of the shares Of stock and bonds
Of the various gas and electric lighting companies
in New-YOrk. absolute MONOPOLY While. pos
sibly. there very little doubt OF this before.
n there was any, il has been removed by the
testimony Of the companies officials as witnesses
We have also established the fact that all % the
subsidiary companies owned by the Consolidated
Gas Company have been apparently much over
capitalized; thar the replacement cost in many
instances would not be equal 70 the outstanding
bond issues Of the company; that entries upon tho
books OF the individual companies representing
assets show property which has aosoutely no Vaiue
We also learned that the constituent companies
were manufacturing gas and selling u 70 the Con
soIidated ComPany Tor price less man tne ton- &
From the evidence thus far obtained il appears
that the price of gas 10 the Consolidated Company
in its holders is about thirty TO tnrty-one cents
The cost OF distribution TO be added to the cost
Of production is matter Yet 70 be determined
II was 6roOsht out at the nearing yests5day mat
cents per kilOwatt. and that a large proportion ~
the current was sold under contract based upon this
charge
The system OF computing deductions TO be cred
tied to the consumer by reason of @ larger use or
current is complicated and hard to explain 20 the
ordinary consumer, but from the statements made
il would seem that il was so arranged that he was
obliged TO pay practically the maximum price.
We only touched upon the city lighting yester-
day but il developed that Notwithstanding the
city consumes enormous amount of current for
the lighting of the streets and use in its buildings
power and lighting purposes, yet II is rated a.
private consumer AZ retail rates and ON account
OF the amount of current used it is given the eX-
tremely low price of - cents. 1t naturally
Cured to me that this really higher price
than either the city justified in paying OF tho
company in charging. During the coming week
viii undoubtedly 90 into the subject more in detail
Our experts hard at work on the books OF
the company and hope 10 be able furnish the
committee with statements by the end of the week.
All members Of the committee viii to Albany
tomorrow evening and be upon attendance OF the
legislature Monday night and will return after the
session Tuesday.