GAS MANUFACTURE AND GAS COMPANIES. 489 



pipes so that all who desire to burn gas may do so, which entails an 

 expenditure in distribution that is not, perhaps, repaid by the sale of 

 gas in the particular locality for many years ; and a very large part 

 of its first investment is in material that would not give any return 

 in case it became bankrupt, or desirous of withdrawing from the busi- 

 ness. Therefore it is entitled to a great deal of consideration, pro- 

 vided it performs "its duty to its customers, and is honorable in all 

 its transactions. 1 ' A general view is then taken of the London com- 

 panies, the result of their competition, and the efforts which have 

 been made to control them by parliamentary enactments. In the 

 efforts that were made from time to time, between 1820 and 1857, 

 to reduce the price of gas, a number of new companies w^ere char- 

 tered and established, until at length thirteen existed, and in some 

 of the streets the mains of three or four companies lay almost in 

 contact with each other. When a leak occurred it was impossible 

 to tell from which main the gas escaped it was, in some places, 

 impossible to tell with certainty to what company a particular main 

 belonged, and it sometimes happened that a consumer would use the 

 gas of one company and pay for it to another. These circumstances, 

 of course, did not tend to lessen the cost of gas, and so the com- 

 panies finally agreed to district the city off and abandon competi- 

 tion. Then followed a consolidation of five companies with others, 

 so that only eight remained, and latterly three of these consoli- 

 dated into one, whereby the number is reduced to six which re- 

 sult, corresponding as it does with the history of gas companies else- 

 where, proves that competition does not operate to reduce the price 

 of gas. It only illustrates the truth of the remark made by John 

 Stuart Mill, and accepted by other political economists, that "where 

 the competitors are so few (as in the case of gas companies), they 

 always end by agreeing not to compete. They may run a race of 

 cheapness to ruin a new candidate, but as soon as he has established 

 his footing they come to terms with him." It eventually ends by the 

 public having to pay the profits on two or more capitals instead 

 of one. 



As early as 1820 a committee of Parliament, of which Sir William 

 Congreve was chairman, reported in favor of granting a monopoly 

 under eertain restrictions to each company in its own district ; but the 

 recommendation was not adopted. As the matter now stauds the com- 

 panies are restricted by law from charging more than 3s. 9d. per 1,000 

 cubic feet, and from paying more than ten per cent, dividends on stocks. 

 The law also compels the companies to submit their accounts to the 

 inspection of an auditor, at his pleasure ; to publish annual statements 

 of the cost of mauufacture, profits, etc. ; and it empowers the local 

 municipal authorities to erect works and supply gas if the companies 

 will not agree to sell gas for 3s. 9d, ; and the same authorities may, if 

 they think that ten per cent, dividends can be paid at a less price 



