Daily State sentinel. [volume] (Indianapolis, Ind.) 1861-1865, 1865-10-11

'sili De able 70 obtain. vher TREY ccur 20 renev,
such foil and accurate information a. will ena
bic them 20 make a new arrangement with a
perfect understanding OF the subject The
question Of light for a large city Is one TOO i'm
portani TO be 10 the dark upon. We should IN
dersisnd itthoroughly = "a
The resent Company is composed OF citizens
amply able TO comply with sey- contract ahey
might make. We think the terms proposed in
this Report, while not oppressive upon consumers,
viii De amply renunerative ~ present. add The
future 10 all with the COMPANY.
We all know tbstths pressnt sayarce inpricss
10 The result Of an Imitation in the currency.
growing out of the war, and with the cessation
Hcf she csuse the enecs Wiz cease
The entire policy OF The GovsTnmsnt viii De
directed 70 a return Of specie payments. which
can only be arrived at tarough contraction OF
the volume OF currency, aud reduction OF
prices will be necessary consequence. Ii will
10 doubt take some time TO accomplish this. but
the steady grayitation OF events will be in thu,
direction
The cost Of production is reduced in proper
ton as the amount consumed ia increased. IN
this. too Il requires Bot little OF ophetic vision
70 foretel that the future Il with the Company.
That our city il destined to prosper and grow
With immense rapidity j. one question upon
which rests no doubt
10 Pittsburgh the cost Of manufacture is so
cents per 900, including every thing, repairs,
salaries, tsxes, &c Tue only article entering
into the manulacture in which there would be
much difference la price. is coal. M
The cost 81 Pittsburgh was ~ aud ii cents;
suppose i, costs here 27-diference IL cents
The difference in the value OF coke here over
Pittsburgh would reduce it TO 10 cents psr bush
aud three bushels TO the coo would make the
coft OF the coal 45 cents more on the 600 than
In Pittsburgh, making che cost here 10 manufac-
turc 81 25 per 600 feet
I Upon the manufacture of the same amount as
lss' year, and same proportion for city and pr-
vate consumers, and gas costing 81 % to manu-
fasturc Il the prices recommended by the Com
mittee. the Company would realize profit of
81 l. per 900 on street. lamps, or So .lS5 %,
and 60 private consumers 81 - per ,0O0 or
S2y.Ia5 50. beng total OF S3i $3.50 10. a clear
| profit after all expenses. even taxes, have been
! paid, and good salaries u some OF the stock
holders as ofhcers, OF 10 per cent on capital OF
! S349 000.-rhe value Of the entire property OF
the presen, COMPANY. as assessed for taxation, is
tl62 $50, and thus at the prices econ nended by
the Committee would make dividends Of pesrly
2l1a per cent on their present capital.
But. suppose the manufacture costs them
81 % per 1000. their PROFITS then on the stress
lamps would be 80 cents the 900. amount.
| inR TO S4,O5o VI and on that 20 private con
sumers would be, 81 80 per 900. amounting TO
/ s25 1876 %, total OF 500 .55i OIL. fraction
over lie per cent on The present capital, clear OF
everything, even taxes
Tie Company last year supplied $50 street
lamps, for which they received 500, amounting
to sl0,66O. Topriva,e consumers, l6. 9y7 800,
al 81 90, smouniing TO $40 4es 10 and estimating
the coal aud Tar At $4,000. their total inco n,e
would be 500. las Is.
! The total manufac was ~ 5O6 400. IL We
allow ~ per 600 as the cost of making the gas
their profits would be f49 l35 80, or 80 per cent
on their PRESENT capital, aud ii it costs only 81 30
per 900. is would be sc per cent Oh their pre
sent capital, aud 20 per cent OIL c pi,.i Of
| S3OO ,OOO, OF within small fraction.
With capital Of 100000, the Company ean
furnish gas at the price named by The Com
mttse, aud be al cost of 81 "a per !, 900, and
can declare dividends of 10 per seut on their
present capital. and furnish gas c0stias thea
50 IL per 1000
Suppose we estimate the capital OF tue present
Company at $500 900 aud they wish to make 10
per cent. dividends. requiring sou. 900 per ar
mum Should they furnish US for all time TO come
only The amount furnished last year, 81, SOC.
400. at the price they propose, 81 AZ per 900.
ths would produce income OF $74,6 81,
and the coke and tar at least g., 900 more. or
total of $79.s42 81 Deduct the dividends Of
$40, 900, leaving for expenses SIS, $40 ~, which
would enable them 10 furnish gas costing the IN
81 as per 1000, aud upon capital OF 5000. 900
furnish gas costing 81 81 II.
In Pittsburg. gas, including every expense
even taxes and salaries, wss made in o64 for 80
cents per ! 900. The coal cost 81 cents and
every other expense 30 cents TOR the OO0
Coal, We will say, costs here % cents per
bushel. and three bushels 10 the 900 would be
81 cents, but the coke il would make would be
worth at least 10 cents more than at Pittsburg,
making the coal for the |, 200 cost SO cents more
than at Pittsburg, end we can still allow every-
thing else to cost here four times as much as at
Pittsburg and then mske the gas at A cost OF
50 So per 1000.
The Committee would say that when they
have spoken of the prices in other cities they
mean exslusive of Government taxes and also
the price al which il is furnished upon prompt
payment.
Should the foregoing recommendation not
meet the views OF the Council or the Company,
perhaps an arrangement might be made which
reserved the right for the Council to establish
the price every six pr twelve months. ID be
based upon fully detailed statement made by
the Company upon the oath OF its President
Should this Recommendation likewise be un
favorably received, would recommend the
formation of new Company for twenty years
upon something like the following plan:
he capital stock to be SOU, 0O0 and under
the control Of nine Directors four Of them elected
by the Company aud five by the Counci from its
own members
The city shall guarantee 10 the stock
holders ten per cent dividends. payable semi
annually. Five per cent OF the gross receipts
shall De fund 70 make extensions and FIVE per
cent. addition as a sinking fund. with which the
city shall buy the works at the end OF twenty
years. and thereafter gas be furnished At cost
We will suppose 5000 900 to be invested, and
we wish to pay 10 per cent DIVIDENDS. That
would require 500, 900; rs. cent. sinking fund,
$1,000; per cert gross receipts for ext ensions,
1926. and TO make 81 ,5O6,400 feet of gas.
costing 81 30 per 700. 1872 .259 90, or n total
required income OF S65, 535 6O per yesr. ard then
the gas furnished at So O434 per 900 feet. and
the city have fund sufficient at the end of
twenty years to buy the works, and having had
the use of the accumulation of such sinking fund
IN the meantime.
Ten per cent, together with the reduction in
the price OF gas. think. would be sufficient to
induce the requisite capital to invest. particularly
by large gas consumers
The stockholders receive this amount aud no 1
more. and hence could have neither the power
OF the motive 10 extoIt, and tia, the city was
responsible for the payment Of the dividends. and
also 10 furnish cheap gas. would induce Council |
men e. look TO its economical management,
By appropriatirg per cent. OF the gross re- /
ceipts - extensions, the city at occe becomes |
tbs owner Of all extensions after the $500 600
has been eIperHi and TO the benefits of the !
-