Gloucester County Democrat. (Woodbury, N.J.) 1878-1932, 1905-12-28
ASKING FOR A. FRANCHISE. :
Clayton, GIassboro and Pitman Gas
Plant

Clayton, GIassbOFO and Pitman Gas
Plant.
| A number Of gentlemen, who claim that
they understand She business of gas making
at profit, are seeking the privilege from
the towns Of Clayton, Glassboro and Pit
man, Of laying pipes in the streets Of those
towns and furnishing the inhabitants with
gas for Illuminating and fuel purposes.
| The promoters met number of the
prominent business men Of those towns last
week and outlined their scheme. First
they want the governing bodies Of those
towns to give them grant, or franchise;
then they propose to issue bonds for the
| full cost of the plant, and these they will
sell in the open market, and with the pro-
ceeds erect plant. They assert the plant
will almost at once be a money making
| Investment, because there will be the town
| lighting as we'll as the individual lighting.
| There is no doubt but these gentlemen
have accurately sized up the situation, and
that with the town lighting the plans
would be self sustaining from the start.
On its face, this proposition seems very
fair one. Out Of it the people will get
what they want, gas for the home, and the
streets of their towns nicely lighted at S1.50
per 1000 feet.
A lot Of people in Clayton, Glassboro and
Pitman no doubt think these gentlemen
are philanthropists, and have come down
there out Of purely unselfsh motives, and
are anxious to vote she franchise asked for
and see the dirt dy.'
Il is probable that the methods that
these gentlemen propose TO follow in the
establishment Of this plant are very similar
to those adopted in hundreds of other
similar cases, and we take the liberty Of
telling our friends down there how it is
done.
1t is very easy to organize a company in
New Jersey, and ii don't cost much money
esther. With an asset like this franchise.
bond would be issued, say for SO. 900 Or
$50, 600, whatever sum was needed, and
stock in an equal amount. The bonds
would be offered and sold at from 70 cents
10 S5 cents on the dollar, and if they went
slow, few shares Of stock would be
thrown in as bonus.
With this money the works would be
built, and after they reached the point and
it wouldn't be long, when the income was
sufficient TO meet the interest," on the bonds,
then the stock would have a value. AS
time went on, and income increased, the
value Of the stock would increase, and in
ten years would be worth as much, if not
more, than the bonds. If the plant was
we'll and substantially built, repairs would
be inexpensive, and the stockholders would
be possessed of a small gold mlne. The
people would be paying $i.5O thousand
for gas, however, and the light bill would
be serious burden on the taxpayers, and
this condition will go on till the end of
time, or until the people wake up and buy
the works-at a big profit to the promoters.
THE OTHER SIDE.
We take it as fact that those towns
want gas works. They can sell gas bonds
at par at 4 per cent. interest.
| There will be no stock issued, because
no ssoutsidev profit will be contemplated.
The first year after the bonds are issued a
gas tax may be necessary to pay the first
years interest on the bonds; the next year
when the works are in operation, the sum
that in the first case would be Levied as a
light tax. would pay the interest on the
bonds; inside Of five years there would be
no need of light tax, because the revenue
from house consumption would pay the
interest and cost of operation, and street
lights would cost nothing. By this time
the excess Of income could be placed in a
sinking fund to meet the bonds, the first
Of which could come due ten years after
the works were built.
In twenty-five years, when Glassboro,
Clayton and Pitman are one town, with a
population Of ten thousand, with peauti-
Iful city hall in the centre, the gas bonds
would be paid, gas could be reduced to 75
cents or 81 q thousand and the streets would
be lighted at no cost to the ia xpayers, and
the city would have an asset worth $100, ,000
or $500, 100.
All we have to say to our good friends al
Clayton, Glassboro and Pitman is, build
your own gas works. You can do it cheaper
than private company, because your
bonds will sell at par and low interest
rate. and in any event you pay the bill
4
Some Census Figures.