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

Referring again to the conte 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 a 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
stock will be more valuable in future than
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 or
+la, &c
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, and
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 gas
company save what is necessary to manu-
facture more gas. Thus if the company
has earned 10 per cent. on its invested
capital is it not reasonable to assume tina,
it will earn equally as much in the futurej
We certainly think so.
Now, suppose the councilmen were
owners of stock which paid like the ga:
shares have paid, and before which the
prospects were so promising, would they
be eager to sells Would they sell if they
had 10 Immediate use for the money, ant
could not, in fact, use ita That i:
precisely the situation of the municipal
corporation. Its money is invested where
1t returns at least per cent. per annum
the increase materially aiding the city t.
pay its current bills. If the shares shall
be sold the money will be idle for year OF
two, for it cannot be re-invested and vii
not be required by the municipality fol
some time The taxes will necessarilyhav,
to be increased to the amount of the ga
stock dividends. And all for uwhat? I,
crafty a sentiment entertained by half
a-dozen men that the city ought not to owl
shares in a profitable business.
THE HERALD hopes the council will re
consider its action authorizing the sale O
the gas stock, and will keep that stock il
its safe, as wise individual would do Tn
law does not require that the city council
shall be devoid Of financial wisdom, no
that it shall work against the best inter
ests Of the people.