Evening capital and Maryland gazette. (Annapolis, Md.) 1910-1922, 1913-01-25
GAS AND ELECTRIC
COMPANY IN MERGER
Deal Pending by Which Utilities
Concern viii Absorb it.
NEWS SURPRISES COUNCIL.
And City Win Not Have Anticipated
Competition After Disputed
Contract Finally Signed.


After all the parrying concerning
toe municipal lighting contract and
the efforts of the Annapolis Public
Utilities Company to secure a fran
chise for engaging in the lighting
and power business in this city, it
develops to the complete surprise of
members of the City Council and cit
izens of the town as well. that the
Gas and Electric Light Company will,
in all probability, be absorbed by
the Utilities Company, so that the
city will not have the looked-for
competition after all.
Ii all came. about so suddenly at
last nights special meeting of the
Council that it fell like thunderbolt
among the City Solons who had
gathered to give favorable considera-
tion to the proposed ordinance grant
ing the new company "a frar chise to
engage in commercial lighting in the
city.
1t would have been needless for
the Council to have acted on the or
dinance, and accepting the sugges-
tion of Mr.. Robert Moss, counsel for
the Utilities Company, when he told
OF the pending deal, the Council
thereupon postponed action indefi-
nitely. The last bit of controversy
incident to the contract which the
city had entered into with the Gas
and Electric Light Company last De-
cember, was hushed shortly after
noon yesterday, when Mayor Strange
subscribed his signature to the in
strument.
In doing this the Mayor acted as
he was morally bound to act, follow
ing the recent opinion of City Coun-
selor Melvin that the contract was
legally binding upon the city. And it
was not long sfter this transaction
was contaminated that the officials of
the two companies met in Baltimore
and an agreement was made by which
the Utilities Company secured an
option for the purchase of the Gas
and Electric Company's property,
etc. Pending an audit of the com
pany's plant by the officials OF the
Utilities Company the deal, however,
remains only as tentative, but it is
believed that it will be consu.n-
mated.
Not until few minutes before the
Council assembled last night did any
or its members have the slightest
knowledge of what was to be sprung.
Immediately after the meeting was
called to order, and the proposed ord
nance embracing the franchise for
the Utilities Company was laid before
the Council, upon favorable report
from the Committee on Bylaws
and Ordinances, which had spent sew
eral hours in going over its various
provisions, Mr.. Moss was permitted
to interrupt the proceedings.
Mr. Moss then told the City Faith
ers of the pending transaction and by
way of suggestion asked that action
on the ordinance be deferred until
some future date. The Council stood
ready to grant the Utilities Com
pany a franchise to engage in the
lighting business from a commercial
standpoint, but coinciding with the
view expressed, agreed to postpone
action on the ordinance.
Though this sudden turn of affairs
! q
known for some time that the Gas
and Electric Company was for sale,
but it was not thought that the Util-
tiles Company had any idea of absorb
ing it. 1t is said, however, that
overtures were made after Mayor
Strange had finally signed the fve-
| year contract with the old company.
From a monetary standpoint this
contract simply made the Gas and
Electric Company's SS5, 900 more val
liable, as the city pays about $1,000
for lighting. The Gas and Electric
Company is assessed for city taxation
at 100000.
| Officials of the Utilities Company
have not discussed dsteiled plans
In tact, they are not in position tc
| do so, until the deal is finally closed.
| 1t is understood, however, that its
purpose is to carry out the contract
| lst closed, as far as the municipal
ity is concerned, but for furnishing
current for commercial purposes it
will conform to the reduced rates as
| proposed in the pending ordinance.
1t is also said that they will use
both the electric and gas plants of the
old company as the distributing
agency, making substantial improve
ments, consisting of the installation
of thoroughly modern equipment. A
considerable saving to the company
will be in the matter of stringing
wires through the city, though advo-
eating the more modern system OF
underground conduits at least in the
business section of the town.
rhe current, it is said, will come
as formerly proposed. through the
power plant of the Washington, Bal
timore and Annapolis Railways Com
pany, of which the Utilities Company
is a subsidiary corporation, to be con
veyed to the distributing plant BY
means OF transformers.
While the fact that the merger Of
the two companies is on was an un
doubted surprise in all quarters o.
I IL IL r