thereof, amounting in the aggregate to $15,000, par value, shall be reserved by the trustee to be used by the petitioner only for the purposes of making improvements and additions as follows: Eight of said bonds for improvements and additions to gas station, three of said bonds for improvements and additions to gas distributing system, three of said bonds for improvements and additions to electric station, and one of said bonds for improvements and additions to electric distributing system; each and all of the aforesaid fifteen bonds to be issued only at the rate of and to the amount of the cost of such improvements and additions.

ACCIDENTS.

The Commission, pursuant, to its supervisory powers, adopted a rule relative to accidents, as follows:

"The general superintendent or manager of every such corporation, or the person in charge of the business of an individual shall inform the Commission of any accident resulting in loss of life or injury to person, immediately after its occurrence."

A form of accident report has been prepared (see Appendix "D"), and a number of returns received. The Commission will insist on full compliance with the rule.

INSPECTION OF METERS.

Pursuant to section 10 of the act creating the Commission, vesting in the Commission supervision of the inspection of gas and electric meters by any State or municipal officer appointed for such purpose, the State inspector of gas meters transmitted to the Commission his annual report for the year 1905, which report appears in the appendix herewith (Appendix "F"). The entire number of meters inspected by the department was 279,032,

of which 92,423 were new meters, 179,732 repaired meters and 6,887 private. Of the latter meters 2,225 were found to be fast, 3,694 correct and 958 slow. The meters reported running fast averaged an incorrectness of six per cent. The total number of meters in New York city was reported to be 918,203.

CONCLUSION.

Questions of importance have presented themselves which suggest modifications of general laws and the law creating the Commission. A bill embodying the amendments proposed will be submitted at an early day. It is a noteworthy fact, and one which argues strongly for the need of supervision, that during the two months preceding the enactment of the law, seventy-four gas electric light and power companies were incorporated, with a total nominal capital stock of $42,192,000. ported as operative. Attention is also called to the fact that under the law as it exists in this State, it is allowable for corporations whose stock is valued at much above par to issue convertible bonds or permit its stockholders to subscribe at par for stock and thus largely increase the charge on the earnings.

Of these only six are re

Opinions of the Attorney-General have sustained the powers of the Commission over combined water and lighting companies and also to direct the disposition of the proceeds of stock and bond issues consented to. A further opinion sustains the authority of the Commission to compel the production of books and papers.

In the administration of the law, preliminary steps have been undertaken looking to various projected lines of action, among them the prescribing of a uniform method of bookkeeping for all gas and electric companies, but in this report the commissioners

have confined themselves to completed work. From August 8, 1905, to January 1, 1906, forty-six public hearings have been held. These hearings related to the various applications and complaints submitted to the Commission. In addition to the public hearings, many executive sessions were held, at which testimony has been reviewed and considered, orders entered and the work of the Commission in general formulated. The total authorized stock and bond issues of the various companies included within the operation of the law, together with the investment in individual and municipal plants, approximate $600,000,000. The extent of the interests involved compels careful consideration of questions presented.

Respectfully submitted,

FREDERIC E. GUNNISON,

JOHN C. DAVIES,

LUCIAN L. SHEDDEN,

Commissioners.

January 1, 1906.

APPENDICES.

APPENDIX "A" Chapter 737, Laws of 1905.

APPENDIX "B" Rules of Practice.

APPENDIX "C" Reports of Companies as of June 30, 1905,

compiled.

APPENDIX "D" Form of Accident Blank.

APPENDIX "E" Form of Annual Report of Companies for 1906. APPENDIX "F" Report of State Inspector of Gas Meters.

APPENDIX "G" Statutes relating to Gas, Electric Light and Power Companies.

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