Steam to Gas

Largest of gas, electric light and power companies is the billion-dollar Consolidated Gas Co. of New York. Last week it was reported that Consolidated Gas has control of a 50-million-dollar utility which is almost unique in service rendered.

The new company to join the Gas system is New York Steam Corp., whose function is to furnish steam for heating and power purposes. The root of New York Steam Corp. was New York Steam Co.. founded in 1880. During the War, New York Steam Co. had fuel troubles, went bankrupt in 1921. Since its reorganization the corporation has been extremely successful. In 1922 its net earnings were only $615,000; for the year ending June 30, 1929 they came to over $2,700,000, up 21% from 1928.

Four tremendous plants give New York Steam its product. One nearing completion at Kips Bay, Manhattan, is the largest power plant of its kind in the world. Here four boilers each use 15 tons of coal an hour, generating steam at 285-lb pressure. This is then passed through reducing valves to street mains which carry it at as high as .165 Ib. Further reducing valves can give it to consumers at any pressure they want. The system's capacity is 4,500,000 Ib. of steam an hour. Its yearly figures reach large numbers, may be summed up as 600,000 tons of coal burned to furnish 9,000,000,000 Ib. of steam through 200,000 ft. of main to 2,300 consumers.

In its effort to reduce costs, New York Steam maintains a large staff of engineers, does valuable research on combustion. Recent visitors to the plant have included technicians from the Japanese-owned South Manchurian Railway Co. which is considering installing similar service in the city of Dairen. A factor which has worried stockholders is the impression that Manhattan winters are becoming less severe. In its annual report, New York Steam discoursed upon this at length, concluded no such change is taking place.

Through its own holdings and those of subsidiaries, Consolidated Gas now has about 69% of New York Steam's stock at present outstanding. While no actual merger is proposed, operating economies can take place. One of these is already practiced by New York Steam's purchasing part of the output of the Gas-controlled New York Edison Co., since steam for heating is needed in the morning, steam for generating in the afternoon.

Gas. In 1823 a charter was granted to the New York Gas Light Co., which later became Consolidated, making the present company the third oldest illuminating gas concern in the U. S. Its expansion has been regular rather than phenomenal, but in recent years the pace has been accelerated. A power in Con. Gas finance is Nicholas F. Brady and a power in its operation is George Bruce Cortelyou, president of Con. Gas since 1909. Once Mr. Cortelyou was a stenographer in the Federal Court of New York, then a Roosevelt cabinet member and national G. 0. P. chairman. A subway rider, he travels by train only in summer when he commutes from Huntington, L. I. Old, faithful Gas employes tell young, restless Gas employes that Gas President Cortelyou has had no vacation for 20 years, works long and hard, finds recreation only in music. In this art he is as versed as in utility technique, can spot a bad second fiddle as quickly as a rising expense ratio. Although New York Steam will maintain its executives, Mr. Cortelyou will of course be its indirect boss.

A deal with which Mr. Cortelyou has been reported busy, but announcement of which never gets closer than "within the fortnight," is a merger between Consolidated Gas and Brooklyn-Union Gas, Mellon-controlled property. The ramifications of this move would be far-reaching, bringing Gas into close relationship with the Koppers Co. and other Mellon utilities. Another frequently mentioned possibility is a vast combination of Gas and the Morgan Niagara-Hudson Power Co. in northern New York.

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