The evening world. [volume] (New York, N.Y.) 1887-1931, 1921-03-04
Gas Companies Let Coal Gas
Plants Go to Ruin, Thus
Aiding Monopoly.
IS THERE A CONSPIRACY?
Standard Oil of N. Y. and s. O.
of N. J. Seem to Play Into
Each Others Hands.

Increased use OF automobiles and
gasoline engines and extension Of oil
burning systems for heating and
driving ships and locomotives have
made possible the boosting OF gas
rates 70 sl.bo in New York City, &C.
cording TO Col. william Hayward,
counsel for the Public Service Com
mission in the gas rate cases
Col Hayward has compiled evi-
dsnce TO show that in the final analy-
els II Is the Standard OIL Company
that fixes gas rates and not the Con
solidated Gas Company This evil
denee viii be used In future proceed
ings for the fixing Of an official rate.
This situation has come about
through the Standards control OF the
OF market and developnent OF gas
plants for making oil gas at the ex-
pense OF the coal gas plants. Now,
according to Col Hayward and his
associate, Major John Holley Clark
ir., peculiar market changes have
made It more profitable for the
standard Oil interests TO pay less al
iention 10 their gas company holdings
ard leave them 70 their own devices.
GAS COMPANIES PAY TWICE
MARKET PRICE FOR COAL GAS.
The gas oil for which the ConsoH-
dated is now paying the Standard on
l2Sl Genus per gahOn, although the
open market price Is less tn>in cents,
formerly was thrown away as waste
after the kerosene had been taken out.
kerOsuiie al mat time WIS tne p4Ou-
uct OF principal value.
In the SOS II was found that the
residue, or intermediate" oil was
useful FOR making gas. The Standard
OH began 70 take an interest in gas
making and acquired considerable
holdings In gas companies.
rom that time on coal gas making
was neglected and gas oil makins
was developed rapidly. The price OF
the intermediate" oil, for which
there was little other use. was cheap
enough TO make this method OF man
ufacture economical
with the advent Of the automobile
and later the popularity of the gas
engine, the demand for gasoline forced
this product into the leading position
81 oil products. Gasoline was eX-
tracted from the "gas OIL" leaving a
residue still useful for gas making
but much inferior 10 the "inter-
mediate" oil.
The war period, with its pressing
demand for FUELS. brought perfection
OF a method Of stall further refining
the oil residue and extracting gasoline
BY subjecting the oil 10 terrific neal
AZ high pressure. BY thus cracking
the oil and getting further gasoline
the producers obtained a higher price
than they were getting for the 'ga'
OIL"
PEOPLE PAY FOR THE "scRAP.
PING" OF COAL GAS PLANTS.
Meantime the use OF oil for making
gas had been made compulsory on tho
gas companies by the changing Owe
81 plants In 1914. when the price o.
on was SOS9sl per gallon, the Con
solieated was making at the Astoria
plant 5.769 i42 cubic feet Of coal ga
10 S9e9.0s4 cubic feet Of oil gas. II
1918, When the price or oil had ad
vaneed 10 5 08S5s per gallon, the SAM
plants production OF coal gas hal
dropped to S,072,0c4 cubic feet OF Goa
gas ~ainst 6.es2 772 cubic feet OF oi
gas. Thus Major Clark shows. manu-
facttIre OF oil gas was greaiy increase