The Washington times., 1907-12-09
TORONTO GAS CO.
REDUCES PRICES,
PAYS HIGH DUTY
Uses Coal From United
States-Product Sells
for Is Cents.
Monopoly Has Been
Tanned - Consumers
Pleased With Service.

TORONTO, Ontario. Dec. 9.-The city
OF Toronto gets gas at 70 cents per loo
feet; gas made from coal shipped in
from the United States and subject TO
a duty OF 50 cents per ton. The cost
OF gas coal is high, because OF the duty
and the freight; but The gas is cheap
and of excellent quality.
The story Of gas in Toronto Is like
the story OF gas wherever the monopoly
has been tanned, and made to work for
the public. IL has been long and
bitter fight
Gas once sold here at 3 per thousand
The regulatory laws of Ontario are
regarded in many ways as a model
Incorporated in 1913.
The Consumers Gas Company OF To-
ronto was Incorporated in March, lS4S.
with a capital OF E25,OC, currency, and
their act Of Incorporation recltes that
at was granted with the consent Of the
mayor. aldermen. and citizens OF Toron-
to. who had consented TO their having
the necessary powers for the carrying
out Of the objects OF the company, which
were, 10 quote -hc words of the act.
for the purpose OF supplying the city
OF Toronto with gas IN greater quantity,
of better quality. and at a cheaper rate
than the same hath heretofore been sup
Piled
BY various subsequent acts previous
10 1887 the company was allowed 70 in
crease its capital stock from time to
time and its original charter was from
time TO time amended.
Between the time of the Incorporation
OF the company and 1857 the following
reductions were made by the company
in the price Of gas per 1000 cubic feet
to all consumers. namely.
Prices Reduced.
In 1919 the net price OF gas was re-
duced to ordinary consumer from $500
10 $500; in 1850. TO 1913; in 1852. to 500;
in 1870. to 2.66; in 1871. TO $3.50; in 1877,
TO S2.25; in 1873. TO 500; in 1850. 20 $40;
In 1885, TO $50; in 1856, - SIS.
April 3, 1857, the legislature of On
tariO passed an act 10 further extend
the powers Of the Consumers Gas Com
pany of Toronto, under which act the
city OF Toronto claimed certain rights
for the enforcement Of which an action
was brought.
The first section OF the act in ques-
ton gave the company authority 10 in
crease its capital stock 10 a sum not
exceeding S2,oOo,Ooo
Renewed Fund.
Section provided that there should
be created and maintained by the COM
pany another fund, TO be called the
plant and buildings renewal fund. to
which fund should be placed each year
the sum OF per cent on the value at
which the plant and buildings In use
by the company stand in the books
Of the company at the end OF the then
fiscal year Of the company, and that
all usual and ordinary renewals and re-
pairs should be charged against this
fund.
II was said the company had not
dealt with their assets and kept their
accounts In accordance with the pro
visions OF the act, and that in conse-
Quence the city. in common with the
other consumers OF gas supplied by the
company, had fsiled TO obtain the re-
ducuon in the price Of gas 10 which
they were entitled.
1t was urged tnat the defendant COM
paCy was bound under the act to keep
the rest or reserve fund as an actual
separate sum of money. apart from the
other property OF the company and in
vested In tho securities mentioned IN
the fourth section OF the act: whereas
In fact, although a separate account
was kept IN their books for the fund.
the moneys which the books entriee
represented had never actually had any
separate existence. but had been in
vested and dealt With by the company
as part OF their ordinary capital.
Limit Renewal Fund.
Application was then made 20 the Pro
viDcisl Legislature for legislation TO
limit the plant and buildings renewal
fund Of the company to $4,000. but
without success.
Since 1857 there have been further
reductions in the price Of gas to con-
surners, as follows:
In 1890 to s1-121h. IN 1893 to SlO5. In 1896
70 20 cents, in 1903 to so cents, and. last
ty, In 1905 to 20 cents per 1000 cubic feet.
The last amending act to the COM
pany's act of incorporation was passed
by the Legislature I'm 1904, and author
lied still another increase in their can
1talization to S3,5OO.OOO, the additional
shares of stock to be disposed Of by
auction, as provided in the act of 1881
after three weeks notice in two of the
daily newspapers OF Toronto. and after
the company has given the mayor three
mcnths notice Of their intention to
offer for sale any OF such shares the
same to be put UP in lots Of ten shares
each.
This act, like that OF 1887. provides
that all surplus realized over the par
value of the shares solo rhalI he added
20 the reserve fund, and the f;-1it of
the reserve fund as heretofore author
lied shall be enlarged by the amount
OF such surplus and no more. the true
intent and meaning being that the coro-
pany may at all times have and MAIN
tain rest or reserve fund equal 10. but
not exceeding, the amount Of one-half
OF the then paid up capital stock of
the company for the first e 600 nOO Of
the said capital stock, together with
the amount Of the surplus realizec over
the par value of all shares then sold
out Of the S.500,0OO capital stock ot this
act.
simultaneously with the psssipp Of
the act Of 1904. the city OF Toronto
sought and obtained legislation from
the provincial government for pover
y purchase any stock or shares of the
Consumers Gas COMPANY and IN bid
therefore at any sale or sales that nav
be made OF such stock or shares when
put up at auction. and to purchase tie
same at such auction or from any share
holder.
AS has already been said. the last re-
ouction was made IN 1906 TO 70 cents
per 1000 feet. at which price gas rs
supplied to all consumers.