The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1890-04-01
THE GAS SHARES.

Referring again to the cont mplated sale
Of the city gas shares, The HERALD most
emphatically protests against their dis
posal for any such sum as can be obtained
for them, and we believe the great major
ity of the people interested will honestly
second this protest. BY the people inter
ested, we mean the taxpayers, and to
them as community rather than to the
council do the shares belong. 1t is said
that the actual earnings of the gas company
have averaged about 10 per cent. on the
capital. The dividends distributed on nine
years reached as high as 81 per cent. and
for all the years the average has been
above S per cent. If all the earnings
have not been apportioned among the
stockholders the money has been invested
in properly, put into plant which makes
the shares so much more valuable. 1t is
believed that an inventory will show fully
$50, if not more, of actual cash value be-
mind every share of stock, and the shares
should be worth fully that much to the
city though it is not likely that anybody
will pay any such figure. 1t is only fair
and reasonable presumption that the gas
clOIh Will OS u4O4C Ill 1obUAO ChuAA
it has been in the past. As the population
of the town grows the consumption of gas
will increase proportionately, and the
cost Of production and service will decrease
Is the consumption increases. Especially
is this true as to service The mains, in
which so much of the company's capital is
invested, can convey gas to two, three OF
four times the present number Of consum
ers, and these consumers will come as the
houses are built more closely together.
To-day there are entire blocks in which
there are but two or three houses. This
condition cannot continue. Land is toe
valuable to lie idle and unoccupied. These
broad lots will be covered with dwelling
houses and business blocks, ani
the main from which two or three
houses draw gas will soon be
supplying the fluid to ten Of
twenty places, the increased service
requiring no outlay on the part of the ga
company save what is necessary to manu-
facture more gas. Thus if the compan,
has earned 10 per cent. on its invested
capital is it not reasonable to assume tina
it will earn equally as much in the future
We certainly think so.
Now, suppose the councilmen were
owners of stock which paid like the ga
shares have paid, and before which tn
prospects were so promising, would the.
be eager to sell? Would they sell if the.
had 10 immediate use for the money, an
could not, in fact, use its That i
precisely the situation of the municipa
corporation. Its money is invested wher
it returns at least per cent. per annum
the increase materially aiding the city t
pay its current bills. If the shares shal
be sold the money will be idle for year o
two, for it cannot be re-invested and Wi
not be required by the municipality TO
some time. The taxes will necessarilyhav
to be increased to the amount of the ga
stock dividends. And all for uwhatl 7
crafty sentiment entertained by hall
a-dozen men that the city ought not to ow
shares in profitable business.
THE HERALD hopes the council will II
consider its action authorizing the sale {
the gas stock, and will keep that stock
its safe, as wise individual would do. Th
law does not require that the city counc
shall be devoid of financial wisdom, nc
that it shall work against the best int
ests of the people.