New-York tribune., 1876-03-25
LETTERS FROM THE PEOPLE.
TIE PRICE OF GAS.


THE RrDucTION OF RATEs-DIvIDENDs OF THR
COMPANIES LAST YEAR-THEIR ABILITY 10 BELL
GAS FAR CHEAPER WITH PROFIT.
TO the EditOr Of The Tribune
SIR; The war between tho producers and
consumers OF gas Is becoming general throughout the
country and Kerosene is proving 30 formidable weapon
the hands Of the consumers that the companies are
disposed make concessions Intrenched as the
larger corporations behind exclusive franchises, and
with heavy to draw that must be serious
demonstration before any abatement Of the tax laid on
the people be brought about In this and neghhOr-
ing cities q reduction of 25 cents per 1000 feet
has been granted-a concession OF per cent
Of his usual b.u to the consumer III wise
policy had led the managers to make this concession
voluntarily and in advance of the popular camor,
would been received very gracioisy but since IL
has been caused by pressure the questions arise Is IL
sufficient reduction satisfy the public Is II all they
arc entitled Tho companies say 1t Is all they can NJ
ford to yield. Having been at some pains to collect
facts bearing upon these questions propose to discuss
them. The two largest companies IN this CITY nave
capital Of So 900 600 Their business during the year
past far profitable in spite of the
OF thor customers that their conservative directors ie
justified in declaring dividends respectively FOR thcT
companies OF 20 ana 80 per cent As it has been tier
practice to put aside money in addition for rainy
day (possiby approaching now). II prcsumable tha'
good sun beside went into the reserve fnnd NOW
reduction OF Q per cent In tho selling price would OF
course represent much smaller. reduction OF pro't
which is only portion Of that price IL II Is rs small
portion as the officers woud have US believe probapy'
Der cent would more than represent IT, This would
lower the above dividends to 1910 per cent and 33'lco
per cent respectively. No very frightu loss ono might
think. ,......, l.,
But this H. not all As this generous abatement Il
made ont of dcfeTcnco to tho eXC nclcS of thc ll'H
is fair 20 mention Tn the cause has so iorcr
down WAGES that this fact. AMI the low price oi 'o'
will enable the companies To make rs much II not mort
money tins season than last on the SAINT
amount OF consumption 1t Is u tvornc NJ
gulncnt with gas companies that the pnone , 40
not uro,crly estimate the heavy cost OF. as
rilut on THIS true, hut have obtained lull lnurihi
ton on iis and other points and would reSpcctuiN IN
ouirc OF the Ncw-York companies whether, adinh1hS
i, item to fully equal 10 the cost of production y
soInc would have the people believe. they woull IKE IT,
have me present the two items comprising tota cp'i'
flat the people may appreciate III" poverty o feir bi
ness. The fact l., the hiqh piic" for Illuminating gas
maintained, because Of uuwillingn'~r 10 rtft WIN
cxurb,ant profits aud supposed ahiity u Nrt nDth
tI,n. because imp business - largely III ihr
management of men who. thTJush piSpnu ih'rr'St 81
ignorance both. have been aycrsc Ia introducing luo
IL the scirnt Investigations 10 wEicn II should De ptc
arly opcn. aul the tendency -. which III all othcf ne
partucnts been Ia chc'pcn and improve product,
Aer York, March To- 1876. d.