The Washington herald., 1907-09-08

gdS oy the Boston consolidated Gas COM
pany. and the resulting effect upon the
/ affairs Of the company, as well as the
I consumers, is the subject of an interest
/ ing article in the Outlook
] 1t will 10 doubt be Of as much interest
to Washingtonians as to the Gothamites
/ The Outlook says:
! New Workers viii look with some envy
at the success with which Boston has
proved that the interests Of the consumers
and stockholders in a great gas corpora
I ton may be made harmonious Last
August the Outlook called attention 10
/ the passage by the Massachusetts legis-
/ lature of what is known as the sliding
scale gas bill The voluntary reduction
in the price Of gas just announced by the
Boston Consolidated Gas Company from
So cents TO 50 cents per I,OO0 feet is the
best kind of practical testimony to the
successful sberatiOn of the law In 1905
the Boston gas companies We're, consoIi-
dated; under the act Of consolidation the
capitalization was limited 10 Sl5,121.6OO,
and the price Of gas within one year from
consolidation was TO be reduced to 90
cents.
Sliding Scale Bill.
The sliding scale bill of 1906 provided !
that the gas company could not pay
dividend of more than I per cent upon !
its capital until one year after it had re-
duced the price of gas below 90 cents, and |
that its dividends might then be increased |
in the proportion Of l per cent for each 5 |
cents reduction in the price of gas.
$'At the time the sliding-scale act was |
passed the company was paying per /
cent dividend on its capital stock; the /
immediate effect of the act, therefore. was /
70 compel a reduction Of 1 per cent in the /
dividend
Reduces Price of Gas.
THE company. however. at once re-
duced the price Of gas 70 s. cents last
July, which permits it this July to return
to the s per cent dividend. Having now
reduced the price Of gas again by cents,
next YER the company viii be permitted
to increase its dividend rate to per cent.
Thus the effect Of this law is both TO in
spire the company to reduce the price 10
the consumer and also TO increase BY
modern appliances and generous treat
ment Of customers the consumption. so
that the additional dividend permitted by
law may be paid to the stockholders.
President Richards, of the gas company.
who has proved himself 10 be not only an
efficient corporation manager, but a pub
lic-spirited citizen, has so managed the
affairs of his company that the consumers
Of Boston have had their feelings OF en-
nifty changed into feelings of good will
Gas Engines in Demand.
"A great many large business concerns
have installed gas engines to generate
their own electric light, rather than deal
with the Edison Company, which, people
quite generally believe, has not treated /
the community fairly. Another success
ful feature OF this Boston gas legislation
is that the gas company is noW free TO
devote itself strictly 10 the gas business,
whereas formerly large part Of its time
and attention were diverted to politics.
The gas company formerly maintained
the most extensive lobby, both at the
state house and the city hall and was
itself the constant prey Of strikers among
the petty politicians It was also carry
ing on its payroll large number Of use
less nominees Of politicians who had to
be placated IN this way
Public Franchise League.
''The Public Franchise League. 10 whose
efforts the reform gas legislation of Bos-
ton is largely due put an end to this
political evil in public utilities by secur-
ing the passage Of a statute prohibiting
persons in public Office from soliciting
positions in qUasi-public corporations and
of such corporations from giving them.
Gas reform in Boston has been un-
QuestiOnably a social and political sue
cess; il has also been a success for the
investor. The market price in Boston Of
Gas common stock has risen from a 70
81 in. the last two years. while the local
Edison stock has declined from 255 to
256, American Telephone l42 to 104 and
New York, New Haven and Hartford
from 20 TO 100.
Benefits All Alike.
"The Outlook has often contended that
the right kind Of government regulation
of public and semi-pubnc corporations
will benefit the investor and legitimate
capitalist as much as the simple shipper,
traveller, consumer or other customer of
the corporations.
"Other communities which are debating
the question OF just and efficient reguIa-
ton of public utilities would do we'll to
get into communication with Louis D.
Brandeis. a distinguished lawyer of Bos-
ton, whose effective devotion to- the in
terests of both consumer and capitalist