New-York tribune., 1921-10-08
One Big Gas Co.
Recommended
Prendergast
Favors Giant Merger, With
City as Active Partner
and a Unified Rate, In
His Address at Lake Placid
Expands Miller'sP 'sProgram
Says Municipal Ownership
Eventually Might Re-
suit From Combination

day recommended the consolidation of
all the gas companies operating in New
York City into one company, with the
city as partner and a unified gas rate
for the entire city. He went even fur
ther and suggested that under such a
plan the city might eventually take over
the gas properties
The chairman's recommendations wero
made in an address at the convention of
the Empire State Gas and Electric As
sociation at Lake Placid Copies of his
speech were given out here a. the local
Office Of the Public Service Commission.
Reports from Lake Placid said the ad
vocacy of such sweeping plan by the
chairman of the commission created con-
siderable surprise among the gas men.
Similar surprise was reflected in public
utility circles here.
In this plan for consolidating the
gas companies was seen another chap
ter in Governor Miller's comprehensive
program for reorganizing public utili-
ties in this city. The announcement
assumed added Importance in relation
to the recent report of the Transit
Commission of it's plan to reorganize
the traction facilities.
Seeks Unified Rate
Chairman Prendergast pointed out
that the public attitude in this city
toward practically all public utilities
is "strongly critical. suspicious and
unfriendly." He said the people in vari-
Gus parts of the city were paying
many different prices for gas to vari-
Gus comps MES, in many instances, all
owned by the same corporation. This
fact added to the general dissatisfac-
ton, he said.
In making his suggestion for the
creation of one big gas company Chair
man Prendergast emphasized that only
"the genuine value Of the present great
investment in the gas business" need
be protected in the consideration of his
idea.
"The time has arrived for some con-
structive effort to correct present con-
ditions," he said. "There is no use in
permitting their continuance. If this
is attempted public disfavor will ex-
hibit itself in demands for more drastic
remedies. The principle of municipal
operation has its main support in de
sire for a change rather than in any
inherent belief in the efficacy of the
principle itself. The constructive ef-
fort should have for it's object four
important dcrations:
81. A uniformly adequate and salts
factory service.
80 Moosyroa xyt,;ch will f,;~t,, -.
tect all there is of genuine value in
the present great investment in the
gas business.
"3. Safeguards for such additional
investment as may be necessary from
time to time and,
"A. A management so regulated that
the utmost economy of outlay will bo
secured, and in this way the loves st
possible price may be exacted from the
consumer.
Must Satisfy Public
"Any changes that may be contem-
plated will be futile unless they are
supported by satisfied public opinion.
| believe that the interests of the pub
lie would be best served by the crea-
tion of single gas producing and dis
tributing company for the City Of New
York. This would have the effect of
concentrating the energies and re-
sources of the existing companies and
mean great gain in economies and
service through unified management
and operation. 1t would also wipe out
the disparities in present rates now
charged throughout the municipality.
The city should be made a part of the
new system. The public is no longer
satisfied with exclusively private man
are it's gifts to. capital, and in which it
considers that it should have more
important share than has heretofore
been enjoyed.
II am suggesting a working partner
ship between unified gas corporation
and the city. There are precedents for
this. 1t is not new experiment. The
exact basis for this partnership am
not prepared to discuss definitely at
this time, but will say that in the rec
concentrations of the surprisingly able
report of the Transit Commission is
sued on September 80 there is consid
cradle suggestive matter that would
apply to the gas company situation
On one point, however, | wish to be
absolutely specific at this time and say
that the City of New York must have
positive voice and representation in
the management of such an enterprise.
Legislat tive sanction would be required,
and this | feel assured could be ob-
tanned.
"I am not suggesting municipal
operation; on the contrary ] would
depreciatc it. For the city to have
representation in an enterprise is one
thing. For city government to have
the responsibility of conducting q great
and intricate business is quite another.
The political changes that take place in
a city government absolutely preclude
the possibility of successful municipal
operation. Further, the city should
not buy the companies outright, for it
has not the credit for such a gigantic
operation. But plan could BE- evolved
through which the city would gradually
become the owner of the gas proper
ties. But l am more concerned at
this time in submitting the PROPOSE
ton for consideration than in present
ing plan. | am convinced that the
realization of this idea will do much
TO stabilize public opinion toward util-
ity companies and induce a larger
measure of contentment in the com
munity."
Chairman Prendergast discussed the
divergent rates of the parent and sub
sidlary gas companies and declared the
consumer could not sec any good rea-
son why he shouldn't enjoy more uni
torn rate. Referring to the downward
trend in prices, AS it affected the gas
companies and the consumers, he said :
We have all realized that there has
been n downward trend In prices for
over year, and the public considers.
and rightly, that it should be the bcne.
~