Los Angeles herald., 1908-10-13
NEW GAS CO.'S
GIANT MERGER
CONSUMMATED
DETAILS POINT TO A HUGE
COMBINATION
OLD CONCERN ABSORBED IS
REPORT
Employees of Soliciting Department
Discharged as Result of Closer
Relations-BaIch Makes
Denial
GIGANTIC merger of public util'

A GIGANTIC merger of public utll-
n tiles corporations that is to include
IA no fewer than 100 California toWhs
and cities is the reputed aim OF the
Domestic Gas company. formerly the
City Gas company, which was ACQUIRED
recently by the NEUTRALITY-SUSPICIOUS.
interests.
Details of this merger were conducted
secretly, but they became known III
part yesterday, following the consum-
nation of closer relations between the
Domestic Gas company. which is under
stood to be controlled by the Pacific
Light and Power company ana the Los
Angeles Gas and Electric company
This closer relation is declared by many
to be the absorption of the old company
by the Kerckhoff- Huntington interests
although this is denied by officials of
the latter corporation.
The facts that gave rise to the report
of the consolidation of the two COM
panies are these: Yesterday virtually
every solicitor of both companies was
discharged, 1t is stated by employees OF
the companies. and the employee who
remained were given to understand tina.
there was to be no more competition.
No Competition
S AS a further proof that the relation
between the two is extremely close 1t
lis stated that the "cut-out" orders, that
is to say the written permission of con-
sumers to change from the service of
enc company to that of the other, were
cancelled.
1t was generally believed that the
negotiations were to be consummated
during the presence of H. T.. Hunting
ton I'm Los Angeles, and his departure
Sunday for the east was taken to mean
that the deal had been closed.
Reports that the actual consolidation
has taken place were denied last night
by A. c. Balch, general manager OF the
Domestic company.
In business circles 1t has been ru-
mored for some time that one of the
factors delaying the consolidation was
the disposition of Walter Cline, presi-
dent of the Los Angeles Gas ana Elec-
tric company. Cline's business asso-
ciates and friends, IL was stated, had
insisted that he be made president of
the consolidated companies. This met
with some opposition. it is said, thus
delaying the negotiations.
When told that a reporter WlSneu 10
speak to Mr.. Cline, the servant at his
home on Figueroa street stated that
Mr.. Cline was not at home.
BaIch Denies
Mr.. Balch, general manager of the
Domestic company, declared there had
been no consolidation, when questioned
at the Angelus hotel. Asked what Mr.
Cline's position is to be in the future.
he said he supposed it would be the
same as it is now.
Beyond saying that solicitors are not
needed at present, officials of the cor
norations had no reason to advance
that would explain the discharge OF
nearly all the employees who have been
doing the actual competitive work.
1t has been rumored frequently IN
business circles that eastern capital Is
seeking investment in the public utili,
ties of Southern California, ana well
informed men say it would not be at
all surprising if Mr.. Huntington Is car
rying east with him details of the con-
summation of these plans.
Among the interests frequently men
tioned as wishing to invest heavily
here is the Standard Oil company