The weekly democratic statesman. [volume] (Austin, Tex.) 1871-1883, 1880-04-08

rstarS of the Ga O.mpaoy, bt fore
the City COo"cil Of Austin upon Tho
Question sub tit flag Gasoline for
the Gas Lamps, Ap'il s.
Gents During the year 1877 the gas
works, Tor tn" tirst time sluce their
erection in 1874, became self-,uppor
ing, and Were enabled to pay small
dividend
In f b usry, 1873, when 7 was elect
ed secretary of the gas company, the
price OF lighting the gas lamps of the
city averaged 81 PR month, or $S4 per
snuum per lamp, aud the oil lamps
cost So so per month, or 5 per annum
per amp. In conse queuce of the high
price being paid for gas, the cry coun-
Gil had, just before was elected, pass
ed resolution to SUIT it # alter the
first of March, notwithstanding the
price charged was according to con-
tract, t wit: the same that was being
paid by the city of 81 Iustnn.
Our board of directors, believing that
cheap gss, like cheap postage, W, uld
Increase the receipts, cut down the
price from So to So per thous and to
private consumers, and MADE PROPOSE.
zion to the city which resul ed in the
passage of the ordinance OF June, 1878
fixing a scale of prices continually de-
creasing until the Dumber of lamps
should reach 100, when the price should
remain at $40 per annum per Tampa
price actually less than was beng paid
for the oil lamps. This proposition
was copied from those adopted by the
cities of Denisou and Sherman, and
notwithstanding their coal does not
cost more than half the amount thai
Ours does, yet the rate of charges is
precisely the same. This was objected
TO at the time by some of the directors,
who commended that we could not fur
ulsh it as cheaply as those cities be-
cause we had to pay so much more for
our coal. But 1t was argued by those
who were better informed thst the
best policy would be to put the
price down at once to the low
est figure at which it could ever
be afforded; that it would popularizs
the company and save snnoysnces here
after from attempts at getting the price
reduced; and, moreover, that with the
same employees and machinery, We
could make three times the amount OF
gas we were making at precisely the
same cost, save and except the cost of
the additional quantity of coal required.
This argument prevailed, and the propo
sition was unanimous y agreed TO by
the board of directors, was submitted
to the council, who, believe, passed
he ordinance unanimously.
I state the act without the fear of
contradiction, that there j. not a Guy
in the state that is getting gas cheaper
than the city. of Austin, and there IS
not gas company in the state that IS
being so poorly paid for its gas as ls
he Austin company, for 1t has to pay
nearly twice as much for its coal as
any other company, save the San Ant i
Mo company, where coal is lutte
desrer than at Austin, but that comps
ny receives a much better price for irs
gas.
Il is shown by the books of the Aus
in Gas company, that each street.
lamp consumes ON an average $50 feet
of gas per month. A So SO per month
per lamp, yields So 80 per thousand
cubic feet. / haYe In nv possession u
letter from the general superintendent
of the gas works IN New Orleans, IN
which he ates that the city is paying
them $50 600 per snnum for lighting
the street lamps. and that the company
IN realiz ng 50 43 per Thousand cubic
feet of gas consumed, only seven cents
less than we are real z Dg for ours.
o wing to the great quantity consumed
and the difference III the cost If coal,
it is evident that 81 per Thousand
would pay that com pany better than "a
would pay US.
/ conf iently believe that there is not
u gas company in the United States, all
things considered (thst is, cost of coal
and other expenses, and limited mum
Der of consumers), that Is selling gas
as cheap as the Austin Gas company.
Nearly nine-tenths of the stock Is
owned outside of the State. About
$50, 600 of foreign capital has been in
vested in our city in the gas works.
They have been in operation lit e
over SIX years, and in all that time they
have only received eleven per cent. In
dividends on their stock. not quite
per cent. per annun, OF 4 per cent. on
the actual cash invested. Nothing less
than twelve per cent. will tempt any OF
our own capitalists, hence We all take
great pains in inducing foreign capital
to seek investment with Us, and when
we succeed it appears that we take the
same pains to confiscate it.
Why the people OF Austin should be
so opposed to the Gas company is more
than can imagine. Four-fifths of the
directors ATE citizens of Austin, and do
not own one-tenth of the stock. Their
object and aim, sanctioned by the
stockholders, is to keep the gas at the
lowest possible price to pay expenses
and q small dividend, 60 as to obtain
new consumers; consequently at the
annual meeting Of stockholders in F, b.
ruary, 1878. the price was decreased
from % 10 IS. and IN February, 1879,
from IS to - per thousand. At the
meeting in 1880 no reduction could be
made and pay expenses.
do not believe the report Of the
| finance committee should be adopted
| for the reason that It does not do ius-
tice to the gas company. When the
ordinance Of June, 1878. Was passed,
Il fixed the price of gas so low that il
was believed BY the Gas company this,
It would remain in force through all
tune; and in good faith they went
forward, laying new mans, setting up
lamp pots, lamps, etc. They have nor
expended. since the passage Of the or
dinance, less than 90 600. the greater
portion Of which wall be worthless
when the gas is cut 4 q from the CT J
lamps, for the lamp poats will be OF NO
use, and the private consumers along
the new mains will not paw for the
condemnation and leakage. When this
argument Was made with the fassce
COMMITTEES, 10 show that The ordinance