THE LEGAL POSITION. II 



permanent debt that may be a very serious hindrance to the 

 business of the concern. 



The main feature of the privileges afforded by a Pro- 

 visional Order is the exclusive right to supply in a certain 

 district, in return for certain limitations as to selling price, 

 quality and percentage of dividend. The exclusive right 

 to supply is only of value when the district is so promising 

 that, in the absence of such regulations, a second lot of 

 investors would be attracted to it, and competition in gas 

 supply would take place. There are many small concerns 

 throughout the country that are not in possession of 

 statutory powers, yet it is exceptional to hear of a second 

 company being started; for the simple reason that the 

 condition just mentioned does not apply. The first 

 company barely gets a living profit, and under such circum- 

 stances a second is not likely to start, and the exclusive 

 right is simply a fence built round a void space. The 

 maximum price is usually well outside the limits at which 

 business can be done, and any attempt to exceed it would 

 mean ruination. And there is no sense in limiting the 

 profits to 10 per cent., when they cannot by any reasonable 

 possibility be expected to exceed 5 or 6. 



It is true that the non-statutory gas company is 

 dependent for its existence on the suffrage of the local 

 authority, who can forbid the laying of main pipes in 

 the public roads, and that the Provisional Order grants 

 the necessary powers, subject to certain restrictions. 

 But if the company is, unfortunately, on bad terms with 

 the local authority, Parliament is of very little use. In any 

 case, the company is dependent upon the good will of the 

 public, whether as individuals or collectively. It cannot 

 force any person or any authority to buy even a thousand 

 cubic feet of gas. So the Provisional Order must not be 



