New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-09-10

ductions We conceded in the price OF gas
the people OF Boston and Brooh''"'
saved s265,0O0 the first year.
1.-THE company really needed the rev
enues II surrendered but it also heeoeu
more customers and a larger use vi
Nv those il already had. In the meantime
we had planned Improvements ioi
property that eventually. we ielt, "o'''
| Justify our change Of policy. Inc H''-
movements 10 October ! last year coS'
| a. s7s2Os. our sale Of gas during the i'''
| nine years has increased g per cent
"In the old days" Mr.. Richards went
on TO say, I'VE had lobbyists 10 rep',
sent lis before the Legislature-to oe''"''
~ possible measures hurtful TO our Du''
ness and 10 help such as we thoush' W
beneficial. There was no concealrneh' -
our purposes and there was no oi'Dci ;.
Naturally the people were suspicious lhe'
thought we were doing more tnah dP-
peared on the surface
I'VE deemed II advisable 70 SI'P
tran.acting business in that way. We De-
gan going before the committees OF 'no
LEGISLATURE ourselves, stating puohcF ia
the presence OF newspaper reporters "Hd'
We thought we ought to have, ana pointing
out any proposed legislation that was 10
our injury or disadvantage. The change
was good and the effects were noticeaoIe az
once When public service corporations are
| rrvsterious. silent and secretve the people
become distrustful. and exaggerated no
lions and estimates get abroad concerning
, activity and profits.
IT believe, as have said. that the puoHc
"a willing that capital invested In street
railroad. lighting and other utilities shonld
receive a reasonable return, but the trou"le
is that II does not. as rule. understand
the facts And tho companies are N
blame. J am an advocate OF puohclty'
The more the public knows about tho
corporations serving them the better u
will he for both interests ! want 10 say
right here that the people are welcome -
and shall be glad 10 give them any IN
formation they may desire about the sew
/ eral public service corporations with
which l am connected
The price OF gas in Boston said, and
| the dividends OF your company are con-
| trolled by law"
Yes: by an act establishing a sliding
scale, as II is called. The idea was bor-
rowed from England. \ standard price
| for gas is fixed. above which we cannot
! 60 Gas had been selling at 81. The law
| reduced the price TO % cents and allowed
us yearly dividend of per cent. provid-
| ed we earned H. Whenever we lowered the
! price five cents a thousand. we were per-
| mitted 10 increase our annual dividend
per cent.
| "As II happens, we are now selling gas
! at 50 cents and therefore have raised our
dividend rate TO 9 per cent. The act also
! provides for a reserve fund, with which 70
| meet emergencies, equal TO l per cent OF
the capital stock OF the Boston Consolidat-
| ed Gas Company, whose stock amounts 10
about sl5oco,0oo Whenever the emergency
fund equals per cent OF the total capita!
stock, the excess, II there be any. must be
| paid back TO the cities and towns in pro-
portion 10 the mileage OF the gas mains in
each.
Our first reduction in price, five cents a
thousand feet, amounted 10 $4,000. The
people saved that much, Our first increase
/ in the rate OF dividend. per cent, amount
/ ed to $4,000 The shareholders made that
much. The second reduction in price
more gas than before being sold-saved the
people ABOUT s-VV'V0F' DUN 11NA~''N'47'
therefore, amounted 10 $4,000 year The
second reduction in price had, in the mean
while permitted US 10 increase the dividend
another / per cent. or $4,000. So while the
shareholders made in the aggregate 1910,
600. the gas users saved $4,000. Lowering
the price enlarged the consumption, but the
net profits, Of course. were smaller
. The book value Of the property OF the
Boston Consolidated Gas Company Is nearly
s25 10000. The capital, as have stated, is
$4,000. Thus the present dividend of .
per cent is the equivalent Of only 81 per
cent on the money that is actually in the
property But We cannot make any further
increase in the dividend rate unless We
again cut the price OF gas FIVE cents. You
will perceive that the law creates part