Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-10-13
Wilmington Man Aims to
Overthrow Political
Clique Rule
OLD PARTY IN CONTROL
law on Public Utility Board
Leaves Former Regimes in
the Majority
By a Sta5 Correspondent


o,,dent Of the Voters Non-Partisan
yooguo. the organization which is mapping
-, ,ha campaign against the company.
An attempt will be made TO show that
,ho stool, Of the concern was "watered"
-Ab the approval and partly for the bene
a, ~ q few of the leaders of the Old Guard
penubllcan machine, that these same rep
..sortatiyes OF the invisible government"
arc working to have the Board Of Public
I,,uitv Commissioners protect the company
,rsteod OF the public, ana finally that the
,gbts Of wimingtons citizens can only
he saCeguarded by the elimination OF poll
,tcs from the control of not only the gas,
but Of the trolley and other pubic service
corporations as well
Ntr Davis today said that the campaign
his organization was preparing to wage
.ganst tho gas company would develop
iii these facts. A decrease instead Of an
increase in the price Of gas to the con-
sumers here. he predicted, at the same time
would result IL the attempt 10 force phys
icai valuation of the companys property
"a successful and it the water can be
Soueezed out Of the capitalization Of the
concern.
with the present annual revenue. It is
.aid the company could earn 10 per cent
at least upon the actual cash invested in the
concern without the necessity Of hny in
crense The company under It's charter is
entitled to pay a II per cent dividend, and
even those who are conducting the present
campaign indicate that they would be will-
ing 10 have the company fix price sufh-
eIent to pay II per cent dividend, provid-
cd tho return is made on cash paid in in
stead of upon the "watered" stock
POLITICAL PULL
The developments which led up to tho
presept situation in Wilmington's gas case
are simply the history Of numerous pub
lie service corporations whose early forma-
tlou were guided by the hands of those
po,itically favored or sometimes by the
leaders of the Invisible government" them
selves
In 1901 the company which served this
CITY with gas had outstanding liabilities of
100000. During tho latter part OF that
YEAR Edmund Mitchell who later became
Republican State chairman and leader OF
the Old Guard Republican organization,
together with II. II. Billany, for number
OF years chairman of the Republican Cits
Committee; Frank picrson, present Street
Commissioner of Wilmington, and several
others obtained blanket franchise for the
Universal Conduit, Light, Heat and Power
Company.
on account of their absolute domination
of .ccal politics. 1t Is said that they OBJ
tanned the franchise without the payment
cf penny TO the city. With the threat of
competition as a club and armed with the
new franchise the Mitchell crowd forced
the old gas company to reorganize.
The capitalization was increased 20
sl,500,00O. Of this it is understood that
Mitchell and his friends received S25O,0O0
worth of capital stock in the new concern
and 100000 In cash. Both payments, of
course, were in return for the franchise,
which did not cost penny except for the
legal formalities incident 90 incorporation.
Tho new concern was named the Will
mington Gas and Electric Company. In
addition to his cash and stock reward
Mitchell was made vice president Of the
new company at a salary said to be $40, 900
year. OF course, it was conceded that
he knew nothing of gas production or OF
the other phases OF the gas business. but he
did know a great deal Of local politics. and
1t was considered wise to have at the helm
OF the new concern man who could fore
see and prevent the granting Of any new
franchises which would mean a further
"dvvy" with new outside interests.
The management of the company con.
unued under that arrangement until 1909
when the Clarence II. Gest interests pro,
moters OF numerous gas and electric com.
panles, with offices in the Land Title Build
hg' Ihlladelphia. purchased the entire con,
eern for approximately s1,7O0.0O0.
The office Of the company was rebuilt
ue service improved and the business ia.
cilltles expanded Between 100000 anC
S4oO'OOO of new capital was put into tn,
.ysteih; And then the company was reor'
ganized as the Wilmington Gas ComDanN
WIN capitalization of So,30O,0O0.
,oi this amount s2,3OO,ooO was in bonds
tI,ouV'OOO in preferred stock and the re
n1hder In common stock Mtchell's politi
sal Hlhuence was still as potent as evel
ana MS political services were still as val
s.. sapie as ever but in view of the lnancia
90 tAn
y was not certain that he could be of a.
Hucn use as when the company was small
SlI So although he was continued in tn,
Sos,'ion In OF vice president, his salary 1t u
annually. N'N''
me relation Of the present Board o
troIIiS c Cuhty Commissioners to the con
Shs powers Of the gas company is an
oIher interesting chapter The commIssio,
""sh originally planned was to have beel
otate body patterned after the Publi
Ece commission In Pennsylvania. Tn
pSonc p service corporations however. ar
prosperous and fourishing in Delawar
ana when the bill creating the commission
aHy passed the Legislature 1t proNic 81
NJ Sr board of five men appointed by tn
nayor OF Wilmington and with linite
txLS"eIs over public service companies wlthi
"e city OF Wilmington.
Mitchell, Of course was all the while th
oeai leader Of the organization and as on
u the guiding hands OF the invisible gov
sluInent he had a part, invisible, bu
rlore or less certain, In the naming of III
ruonc Utility Commissioners Unfortu
nately for Mitchell, as perhaps too for tn
sas company, the fight between the duPon
.Ssuons S at the election last year split n,
Su organization and a Democratic Mayo
was the result.
Ihe law creating the commission provide
'at lhree OF the five members shall be q
e dominant party. AS a result there ar
ulee Democrats now on the board. Onl
She OF these, however, r. j. Isaac wa
~ppolnted by Mayor Lawson.
As the terms of the members expIre a
enerent times the other four are chang
oNers from the previous Old Guard on
sanitation administration, two Republican
shd Two Democrats, the new appointe
Seng a Democrat TO take the place of
republican
4. mo important fact, however, is that q
ue nve present commissioners, four wer
sppolnted by two Mayors dominated by IN
invisible government" which is personiGe
w Mitchell, vice president Of the gas COR
pany, and his associates. These four sire
Garretson frequently dubbed tho ofle
Doy OF the invisible government; Clarenc
~ Holt Organization Republican; WilliaI
mock Democrat and Richard g. McAIuila