The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1888-03-20
The Company Promises. However. to Ma
terially Reduce It's Prices on April l.
The Council Extends the Old Contract to Nay
1. and Will Try to Obtain Electric Lights
Cheaper than Gas-General Matters.

formal expression the Council had received
from that company. The communication was
as follows:
10 the Honorable Members Of Common Council and
Board Of Aldermen.
Gentlemen-The Indianapolis Gas-ligbt and Coke
Company is in receipt of communication from the
city clers, accompanied by draft Of between
the city and this company stpulatinz the terms upon
which the city desires illuminating gas be fuvn shed
for the coming year and requesting that tie same be
executed TO this company.
In answer 10 this request we desire to say there
have been number of reasons advanced and urged
by the public press and the aliernanic commit
tee that had the matter under consideration why
gas should be furnished by this company to our
city and inhabitants at 81 per 1000 Gu.
In manufacturing illuminating gas to such an ex-
tent to reduce the cost of it. This is true
to limited extent, but it must be borne in mind that
natural cannot be turned into the holders and by
iadmixture with manufactured gas thereby become an
illuminating gas has been represented and repeated
edy stated IN me press of Sr 'n cs, ba
utilized in connection with manufac tured for lum
mating purposes must be decomposed broken by
the application of intense heat wherein the carbon IN
gas goes free be heated with naphtha other iu
inating material and again subjected intense heat
and afterward purified before It can be used tor Im-
mating purposes.
1t is claimed that 30 per cent Of natural gas can
be used in manufacturing illuminating gas This. to
certain extent is true, bat the 30 per cent is the
maximum amount that can be used, and it will be
readily from the above that the using of 80 per
cent of natural gas does reduce the cost or
featured 80 per the fact being that the
OF quantity or natural gas only reduces
the cost from IA to % per cent. Again enc of the
Important items in the manufacture OF gas IS the
the marketing and sale of the coke With the intro
dueton of natural gas for fuel purposes the market
for coke this city will be gone and hereafte coke
manufactured here will have to ind market else
where az an expense OF handling and reghts that mas
existed heretofore and from The best calculations
we have been able to make find that the saving of
Il to 10 per cent by the use q natural gas VIII 90
very materially reduced by of the loss in T&ce
we will be able to realize from the sale of coke.
II is said indianapolis should have gas at 81 per
1000 cubic feet because the cities of Pittsburg and
Wheeling paying that price, but it should be re-
membered that both of those cities not only have
natural gas, but located in field
from which coal for gas purposes is obtained
and that coal is furnished those cities at from 50
TO 80 per while the coal used here for gas
manufacturing has be shipped from Pittsburg and
been urged that Cincnn att and Louisville are supplied
at 81 per 1000 cubic feet, and, therefore, In
dianApohs should have it at the rate when the
truth gas is furnished in Louisville at 81 80 and
in cincinnati at .25 but both these cities their
coal for at least 30 cent less than indianapolis
by of water freights and the consumption of
gas in those cities is at least five times large
that of Indianapolis in proportion to the capital in
vested per mile of main.
It Is further said that indianapolis should have 81
gas because Chicago is furnished gas that rate
furnished there SI.25 per 1000 cubic feet.
The consumption Of gas in Chicago per mile of mains
in proportion to the capital invested is twenty times
greater than here. Consequently, the price being the
same in both cases, gas in INDIANAPOLIS would be
much cheaper than in Chicago We are within the
truth when say that the above mentioned cities
get the raw material without exception. very much
cheaper than the, city of indianapolis. Again
city for its population occupies largo territory
which makes it expensive to dstrbui eGas. In con-
cusion, in regard to this branch of the subject
have hesitation in saying that the cost of dsirb
rting gas in this city twice that of the cities above
mentioned, as they densely populated, with
streets and in the main upon long river fronts
the subject of illuminating has been investigated
and fbsyefore this ctv sbonld be snpnlied with Gas at
81. But those who have urged this SO
form the Tbe that the result of the washington in
ia of are flr-
nishel gas to-day at 81. % per 600 cubic feet.
Much has been said by the committee in its report
and in the public press of Whist is shown upon the
subject of the of illuminating gas by the record
in the Peterson litigation The truth is that the facts
y presented, but the contrary. all that has been
published in relation to it has been purposeyT
bed misstated and mscoustrued for the evident pur
pose of deceving the public and creating prejudice
against this company: while the tSh is that the
about ave years. which was the time covered by the
examination in that case at time did the cost Of
gas delivered to the consumer fall below the of
B1.21 per 1000 cubic feet.
1t is the desire of this company 90, as far as pos
sibe, meet the wishes of Common Council and Board
of Aldermen, and it fully appreciates the present
financial condition of the city and the necessity for
economy in matters of municipal expenses, and it
wishes to furnish the city and its citizens gas the
lowest possible price at which it can be afforded
possibility in the near futufe of the in
vention of mechanical devices by which
natural gas might be used for illuminating purposes
and the possibility Of improvements in generating
electricity for lights, cheapening the thereof
to enable it to compete with other iluminants in
the matter of price it might not be well for the city
to enter into contract fixing rates for longer
period than year, and this company has
making contract for more than one year.
As the city is doubtless there is contract
existing bstween the city and the company which
provides the furnishing of gas at 81 so ner 1000
cubic feet to private consumers, and $25 per post
ger annum TO the city, which contract continues in
force until another shall be entered into. While the
price originally fixed by tire Council SlS.75 per post
and $I.25 per 1000 cubic feet to pri-
vate consumers is materially lower than the
company feels in justice TO itself 1t should
accept yet with the view of meeting the wishes of
the Council and Board of Aldermen, far as it is
within our power to do, willing to enter into
contract. provided it is the desire of the Council
and Board Of Aldermen. the basis of 81 % per
thousand cubic feet and $1S.75 per lamp-post per
year said company to light, extinguish AMI keep in
repair the lamps, will furnish gas for lamp posts
the basis Of the present schedule for $1375 per
uost and the CITY TO light and keen in rena;r
I'm. II k possbte for us to enter into CONTRACT fr
gas at ST. per 1000 and 81 per post for street
light for the reason cannot afford to sell our gas
at those prices.
Much has been said about the profits arising from
the business from manufacturing illuminating gas,
and of the dividends that have been paid by this
pany in the past all of which has been grossly mis-
stated. and much of which is wholly false The COM
mittee and public press claim to have awmonstrated
that illuminating gas costs nothing, and that this
nompany can allow all Of its gas to escape and still
make large profits from its business Upon this SUBJECT
we have this say, he capital stock and liked obi
cations Of this company are the nov that they
have been for number OF years past and nave not
been increased for number Of years If this city,
the city and combination of citizens, a ccmbina
selves furnish the city and it's inhabitants with IL
Eliminating gas at 81 per 1000. and furnish gas,
light extinguish. clean and repair the street
amps at SIS per year for the number
Of hours provided for in the
contract of this company this company is ready and
willing sell and dispose Of its plant them for the
par face value and fixed obligations. This pronos-
ton is made in good faith, and evidences that
there disposition the part of the company.
BY reason Of IT'S owning and controlling the plant 10
take the advantage Of the city oe its citizens to their
dstriment, and because feel that if the city
continuation Of citizens are DESTROYS Of purchasing
The plant, and believe that they furnish st
those rates ana will ogate themselves 70 10 i tbs
COMPANY Is perfectly willing dispose OF IFS proper
3 a. the price Indicated. and allow them 70 do
. We rnight also say although it may have no par
cuar bearing upon this controversy, that II is the
Intention or the company make very material 70
dnetion IN the price charged domestic consumers for
gas and after April L. 1883
INDIANAPOLIS GAs-nIsHT AND COKE Co.
By A 81 FLETCHER, Pres.
IaDiANAPoLIs, March 10, 1888
For minute or two every councilman waite
for ono Of his colleagues to take the initia-
tory in dealing with the naner ana .ha ,nattar II