New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-02-08
FAVORS SO-CENT GAS.
uoIrSE COMMITTEE ACTS.
mn SIRE TO Pass after FaUorable
Report To-day-The Hearing.
fRy Telegraph TO The Tribune. J

-. Feb The Agnew Eighty-cent Gas
. -osrafted To he identical with the Page bill
u-'. L. senate. viii he reported favorably by the
. = = committee on Electricity, Gas and Water
~ tomorrow. and undoubtedly will be
80 q, once Its fate in the Senate is much
- UNCERTAIN. From present indications there
-, :. . hattie royal. as the gas companies
-s-s4ne 10 bear on the Senators all the forces
- aided i'm the defeat of this measure last
- only the strongest efforts of its sup
.a~,srs can bring about its passage. and their
sreatest enemy now is the delay which the
as advocates hope TO cause.
The hill was discussed al a long hearing before
.ss connittee this afternoon. and the committee
a,s5 unanimously 10 report it. The chief feat
=. ~ this hearing the desperate effort
= NJ Natthewson. for the Consolidated Gas
To,nanv OF New York, and William J. Carr,
=. the Brooklyn Union Gas Company, TO gain
- and spread the idea that ~ cent gas would
ear .con7scation" by the State Their pleas
t-isted with such words Illegal ''unconsti-
rtionsT and the dreaded ''confscation." They
begg46 the committee 10 take no action until
he state Gas Commission had rendered its
report.
Ex-senator Guy, representing Mayor McClel-
10, and W 4 Deford of the independence
reseue. on the other hand, declared that the
Aeures submitted by the companies were ridcu-
lous their plea for time was merely blind"
and that they were prepared 10 make a strong
fight against the constitutionalty of the Gas
commissions ediCt. Standard oil and Consoli-
dated Gas ne said. were Identical. and had the
city at their mercy. Mr.. Deford declared that
,bere was S15OG00o0 Of water in the Consol-
dated Gas Company's capitalization. and prac-
,canv accused Mr.. Carter. its secretary, of per-
ip-v in his statements Of the valuation of its
property before the Stevens investigating COM
mittee.
Defence SUBMITS FIGURES.
Mr. Natthewson opened the opposition by SUBJ
rntting exhaustive accumuations OF figures.
For about an hour he talked the committee into
wearness throwing out a feeler every few
minutes. We'll, gentlemen. it viii take me only
a few minutes more. but really there ought TO
be another hearing, that these figures be sub
Inred more fully to YOU" a palpable play for
delay. He declared that if the committee acted
On the bin without waiting for the commissions
report Il would be like judge acting before the
trial The companies never argued that they
should earn more than a fair dividend, he said,
hut no investigating committee ever had con-
sdered that 10 per cent was excessive for a well
managed concern, advantageously situated. IN
Massachusetts the companies earned from 10 10
Z per cent. and even i'm England and per
cent. Taking the company's capitalization
roughly al $4,000 600 it would he necessary
10 charge 30 cents thousand cubic feet 70 earn
per cent which. added TO the TO cent cost Pro-
fsssor Bemis estimated, would make ii irnpOs-
slhle az 50 cent gas. An 50 cent rate leaving
margin Of 10 II cents actual cost at the
burner" said he. amounts 70 absolute. down
right oonhscation. over 30 per cent OF our stock
holders hold less than fifty shares each. and
they are the ones who viii be hurt"
Mr Carr. too, followed this line of argument
'Gas in Brooklyn al 80 cents" said he. means
absolute oonhscaton Of widely held stock No
matter how potent the influence brought 10
bear on you, you may well hesitate before you
deprive these holders Of one cent Of their divi-
dends"
ex-senator Guy said that Mayor McClellan's
sentiments as TO cheap gas We're too well known
TO need explanation. He had sent up bills pro-
Folng FOR 15-cent gas. and it was largely as a
result Of his efforts that the Stevens committee
was appointed. Only a week ago he had urged
'he Board Of Aldermen TO petition the legis-
lature 10 pass The present bill.
GAS STOCKS ABOVE PAR.
These lawyers for the companies are telling
you with a great outlay Of figures" he said.
mat eo-oent gas would be impossible: yet last
year committee. which had before it repre-
sehiauFes Of these companies. reported that So
cent gas would allow ample profits TO the COM
pahAes. To hear the side Of the companies you'd
'1llk they had been doing business at a loss
1ho yet the stock Of the Consolidated. issued at
feI' is now 40 OH the stock markets presum-
aOY because Of the surplus accumulated from
'Ae present rates. The Brooklyn Union. too has
~ tD'e rom 20 10 30 The real question is,
" nr
"' IL lair amount 10 let companies make
0-s VI me privileges granted by the people?
i"el representative talk about coal getting
,ieaper ln one place and oil in another, but they
eoNI say anything about the price of oil being
.Asa arbitrarily by the Standard Oil Company.
"seest monopoly in the world which is
Selves"
MT Nathewson interposed that there
vas absolutely 40 connection between the in
sulluoiis bur ex-senator CiIv retorted:
"eir now its pretty well known secret
NE same financial interests are concerned
'lSo.dated Gas and STANDARD Oil Are we
.e'e The price II gas lacked up by them
ef they like they 90 10 oil? Why.
-, u tilese companies have testified that they
eaS 10 me Consolidated az IS cents a thou
- 'F-- DO YOU mean 20 tell me that their
-. - would allow that If they we're going TO
,sy. money. We can't get at all the inwardness
a., "'fKlncs but they must have some large
;. "ue oi profit 10 permit that Pass this bin
y" On uo injustice II viii con6scate 30
80. .s' and win allow a very fair return on
'a'ered capital"
WOULD ATTACK COMMISSION"
',i I'e Ford said that the Independence League
-ls u favored this bnl. believed that the price
BE- =