The Bridgeport evening farmer. [volume] (Bridgeport, Conn.) 1866-1917, 1913-10-03
Especial to The Farmer.l

A0PSC4dA 20 4 44S Il 41CAsP
Hartford, Oct. s-A financial scan
dal Of magnitude, and q typical exam
pie of public utilities finance was un-
earthed before the Public Utilities
Commission, today, in the report of
Expert Accountant Fields, to the com
mission, relative to the Bridgeport Gas
Light Company.
It was shown that property sold un-
der the auctioneer's hammer for $685.,
900, had been acquired by Bridgeport
Gas Light Company at a, cost of ST.
100000, and that the burden of carry
ing this cost had been thrust upon the
public of Bridgeport, and borne by
them since Jan. 1, 1902.
The miracle of turning nothing into
cash was performed on a large scale
on this bright New Year Day.
After the property of the Citizens
Gas Company had been acquired, by
this large payment, the stockholders
voted to; issue 100000 in stock. Hav-
ing issued it, they did not sell it, but
each stockholder who had one share
of stock forthwith received two and
one-t third shares more, all the profits
upon which have since been charged
into the price of gas and paid by the
Bridgeport public.
The story, as it is told by Account
ant Fields, is most dramatic, and a
classical example of the operation of
overcharging gas consumers.
The Citizens Gas Company was not
a competitor of the Bridgeport Gas
Light Company, except in the field of
gas for heating and power. 1t had no
charter to sell gas for illumination.
In 1901 the company had failed. Its
property had gone under the hammer.
The court had ordered the property
sold, and named Frank Miller to sell
it, The property was bid in by Han
ford B. Weed, of Darien, and of Mr..
Weed the Bridgeport Gas Light Co.
bought it, paying $1,OO0,O0O in gold
bearing bonds, and $780, 900 in stock of
the Bridgeport Gas Light co.
At the same time the stock dividend
was declared, and the money MAX
ing miracles performed.
On Iecember 81, 1901, the Bridge
port Gas Light Co.'S books. showed
that it had property valued at $4S9, $50.
On January 1, 1902, the books were
and the same account show
ed 81, ,290, ,542.
There had been added to the preex-
listing property of the company, over
night, nothing but the property of the
VI fortunate Citizens Gas Co., which |
had brought under the hammer only
sS5. 600.
"I am informed" reads the report
Of Expert Accountant Fields, that |
there are no books or other evidence !
was established, and acarefuI exam |
ration of the books and other records |
to which I have had access fails to |
disclose any information bearing on |
This point"
Put the basis upon which this i'm |
nense sum was made a charge against |
he gas consumers of Bridgeport, be- |
came apparent in the testimony of Mr.. I
Dieterich, a director of the company. |
Accountant Field says, in his report |
20 the commission:
ION August 21 a meeting of the ex- |
.cutive committee of the Bridgeport !
was held at the office of the
to which L was invited and !
here met the president, vice-president, I
secretary and treasurer and Mr.. Die !
.erich. The latter was able to re- i
,ai with much detail the various steps !
e,ading up to the purchase of the CitI- |
ems Gas Co. and the subsequent pro-
,eedings, although he had no per
;t nal knowledge of the bookkeeping
Methods, and it appeared from his |
that in order to adjust the |
valuation of the plant and equipment !
20 the total amount of the bonds and !
oarital stock to be issued and the |
issue of bonds, this val |
1ation of $2,290,542 was determined |
1pCn.'
The report is made in connection |