The sun., 1906-02-24
80 CENT GAS IN MANHATTAN.
STATE COMMISSION ISSUES Az
ORDER FIYTNG THE PRICE.
And WI Follow II with Orders Affecting
The Bronx and rookl,n-Consoli-
dated's LAWYER Objects 10 the Boards
Method ~ Hnndling the Figures.


Method m Handling the Figures.
The State Commission Of Gas and Elec-
tricity, At Albany YESTERDAY, fixed the
price Of gas in Manhattan at SO cents
thousand feet reduction If 20 cents
thousand from the present rate. The Con-
soldsted Gas Company and its subsidiary
companies the New Amsterdam Standard
and Mutual, the companies affected, have
not fixed the price at 80 cents. Neither
has the Appellate Division to which the
companies have tht right TO appeal within
thirty days IT is Hui'e certain that the
appeal will be brough'
The order of the State commission is to
90 into effect on May and to remain in
force three years from that date. II pro-
vides that the gas TO be furnished az the
reduced price shall I've of twenty-five
candle power and OF purity and pressure
nov: es ta blshei b. Law twas announced
that a similar order will "a issued forth
with agains' The Bronx companies, the
Central Union and the Northern Union.
An investigation is now IN progress on
complaints against the Brooklyn Union
Gas Company
The gas commission gave out the follow
ing statement in justification Of its order;
The Consolidated company Is the largest
company operating in New York. and on
October al. 1905. had issued and outstanding
$50. ono 600 capital stock and bonds and con-
vertible debentures amounting to s2l ,2i5,o0o
During the nominal year ending October ST.
1905 II sold 70 consumers i3,o37.le4,550 cubic
feet gas: street lamp use, 27lla9.2?S cnoio
feet gas total. IL, sos 3e3.773 cubic feet gas.
The company received an income from
consumers. sl30l2. .206.oo. street lamps. so53, :
SPILL total. sl3,5i?, ,o2e.2o
The cost OF manufacturing and dlsfrio-
uting the gas sold to consumers amounts
TO s7.a2oO77, AZ. or 6o.75 cents pei thousand
cubic feet. not including fixed charges OF the
company amounting to saS6, sS3.:i.
On the first day of July. 1905. law passed
BY the Legislature of 1905 went into effect
which compelled the Consolidated Gas Com
pany 70 furnish gas of an illuminating power
of TWENTY-FIVE candles, which was an Increase
of two candle power over that formerly
prescribed bv law.
The nominal year ended October al, 1905.
included four months only OF operation under
the higher candle power requirement. AS
these months were during the warmer
weather. when the cost of enrichment Is
least the commission found that Isl cents
per thousand cubic feet should be added
to the aotual cost of gas as found for the
nominal year 10 obtain the cost OF manu-
featuring and distributing gas OF twenty-five
candle power for twelve months.
The value Of the property OF the Consoli-
dated Gas Company actually emrlored in
the manufacture and distribution OF gas on
October 81 1905. did not exceed the sum
Of $50, ,noO.ooa.
Evidence taken before the committee ap-
pointed by he senate by resolution adopted
MAY II. lss5 vas introduced showing the
cost OF the properties of the constituent COM
panies exclusive Of franchises. as appeared
on their books, TO be in 1854 s:o,a+2 s31..s
The net additions for construction from
1854 to October II. 1905. amounted to 50 6aS.-
1858 To this should he added value OF
mater ais on hand october 81 1905, ssls,i7oos,
making total Of S3l ,252 So.
This total estimate Of valuation leaves
out Of consideration the value OF the com
psnv's franchises. which vera assessed for
taxation in 1905 al s2' 3no,r"' or, dednctinS
the book value of the cnmpanv's mains and
services At SIS 1871 for the franchises
plain and simple. This omission of the
franchise valua ion is thus explained nythe
commission.
on the evldenoe before the commission
(. l. questionable 77he' her The Consolidated
Gas Compsnv has franchises Of any consider
able value The commission believes that
these franchises granted by the people With
"H' 'p!''pe"sa'4'i ~ 'l' "" III - =.
against the pnohe' 'her"oS c"'nPe!'ins 'ne
public 10 par profit upon the value 'i me
favor granted by # Th" seeming inlustlce
Of requiring a corporation TO nav taxes upon
a franchise and at rhe SANE time refusing
10 allow the capitalization oi that franchise
is sophistlcal. NOT real The franchise tax
is pad b, The corporation, bur charge eainsr
the public as sIpense OF HpeFe'on oHn!nia[ an6 IN
1ealiiv Il therelore pata oF 'he 'i>'i'ie''
not hy the eoIhpanF.
Co1nse and ottleers OF me ,oms ap plIcate,1 ea1
Gas company sa" sotIle,ning iitIae .h ., Lea
than sophlstcol IN the refusal OF me com
mission to include me iranohSe values
IN The total capitalization, =.
These franchises, was said on os-
hall OF The g, COMPANY mp we're va oG ms s
state at s1Islon n ls1, lTo ,I ytais a.et
Senate committee iound me I!ahcn.,esS rtS
OF four OF me censtltnsrh, oiniatiies pa "oi,
mora than ina heure; eele Il no oph.lh.'s
IN our oPin!oh, IN .na H.a'e .dHlLas ,h 'Ee,n zen
nov at an ehoi nous sun ann ,rlsn r.nn ,ui
bidding US any earning or return upon a
them No m{Fe shsle pnr,,aot sopl,S,,n ~ t,e the