The Wheeling daily register. [volume] (Wheeling, W. Va.) 1864-1878, 1871-01-14

wheeling was as great as thdt IN INts
burgh, and we enjoyed the peculiar adj
vantages Of the Pittsburgh company,
we could probably afford to furnish gas
at the price charged there. This is q
matter which seems to be either not un-
derstood, or lost sight of by those who
complain of the price charged by the
Wheeling Gas Company.
In another communication l will re-
fer to some of the other advantages
which Pittsburgh enjoys over Wheeling
for the manufacture of gas, and also to
the quality of gas furnished.
There is another thing which must
also be taken into account. The gas
furnished to the city lamps has cost
more than we received for it. What
was lost in that way had to be compen-
stated for by charging higher price to
private consumers than would have been
otherwise necessary. The private con-
sumers Of gas are thus compelled to pay
more than their equitable share Of the
expense of lighting the streets, an ex-
pense which should be borne by the
taxable property of the city. In the
proposition made to Council by the Gas
Company, it is provided that the city
shall pay at the same rate as private
individuals and thus remedy the in
equality complained Of
1t is unreasonable to suppose that
the city can manufacture and furnish
gas to the citizens, and make the works
selfsustaining, at any lower rate than
that we have proposed. Everybody
knows that the business of such an
establishment as the Wheeling Gas
Works will be more economically and
efficiently conducted by men who have
a pecuniary interest in its success, than
by salaried officers who have no more
interest in the matter than any other
citizens have. The Gas Company knows
exactly what it costs per year to run
the works, managing them as encoI omi-
cally and prudently as possible, and
that the price Of gas cannot be safely
reduced below that contained in our
proposition. At that price, il the, city
pays into the gas fund out Of
it's revenue from other sources
for the gas consumed in lighting the
streets and public buildings, it will
probably have surplus revenue enough,
but not more than enough, to pay the
interest on the bonds it proposes to
issue. If it reduces the rate charged
and pays nothing for lighting the streets,
&c, its revenue will not be sufficient to
pay the necessary interest.
In my former communication, said
that the dividends Of the Wheeling Gas
Company had averaged during tine
twenty years Of its existence exactly
nineteen and onefilth per cent. The
Intelhgencer affects TO think that this
means nineteen and one-flth per cent
sen,iiannually But such is not the case.
The annual dividend in cash and stock
combined has only averaged as stated.
above. A few days ago, one OF the city
insurance companies published notice
that it had declared a dividend Of ten
per cent out of six months earnings.
This was a larger dividend than the
average paid by the Gas Company to
its stockholders, and yet we hear no
envious grumblings against the Compa-
ny on that account, nor is it proposed
that the city shall 20 into the insurance
business.
But it is claimed that the company
has enjoyed long and profitable exis-
tence, and its stockholders should now
be content 10 disband and retire. There
might be some force in this, if the stock
were in original hands. But it is not
There is very little Of it indeed in the
hands Of original subscribers. Nearly
all of those now holding the stock
bought it at high rates OF pre-
MUM they have made no extra
quite ordinary speculation, and it is
possible that some OF them may lose
on their investment for those dividends
between 80 or 40 per cent. for year
or two past" of which the IntelEgencer
speaks, are fabulous. The highest div
idend ever declared by the company was
considerably lower than the least Of the
figures named
The object Of the Wheeling Gas Com
pany in publishing these articles is to
show the people that they have not
been defrauded to swell the company's
| receipts, and that the possession Of the
Gas W orks by the city is not likely to
prove so great blessing as many seem
to imagine. The opinion is prevalent
(studiously disseminated by few in
terested parties) that the city, once in
possession of the Gas Works, can fur
nish gas to consumers at a mere tritle,
and out of its earnings pay not
only the purchase money in
a few years, but a large por-
ton Of the ordinary expenses Of the
city government, thus reducing the rate
| Of taxation. Such an idea is sheer non
sense. 1t is very doubtful indeed
whether the revenue from the gas
works will even pay the interest on the
purchase money, if any considerable
reduction is made in the price Of gas.
| If the city is determined to buy and as
sumo all the risks the purchase involves,
the Company wants to have fair and
unprejudlced valuation Of its property.
The value now is to be considered, not
what the Company paid. At the time
the Gas Works were erected and the
pipes laid, labor and material were
much cheaper than now, and the cost
of the Works and the labor at this time
would not fall much, if any, below the
sum named in the Complnys PROPOSE
ton 10 the Council. We ask only what
fair and equitable. We knoa0 that there
is no money in the manufacture Of gas
in Wheeling at the rate and under the
restrictions which are proposed by
some of the citizens, and, --whiie-we
regret the increase Of taxation which
the experiment is likely to cause, the