The McCook tribune. (McCook, Neb.) 1886-1936, 1894-11-23
LoNDoN's GAS COMPANY.
A Gigantic Corporation successfully Run
on the Profit Sharing Plan.

Ou HI IFOut-SndTIuS ran.
An account of the recent half-yearly
meeting of the Great South Metropol-
itan gas company of London, gives
such an idea of its activities and ex-
hibits It's operations in a light SO favor
able that from the ordinary point of
view it would seem to be an ideal
corporation, and, indeed, to present a
near approach to a millennium, so far
as the conditions of an Illuminating
supply may bring it about. At first
glance, therefore, n might be at q
loss to account for the well nigh
unanimous popular demand for a
change. The supply of gas by private
companies in London is hedged about
by very stringent provisions. imposed
Ivy act of parliament in the interest of
consumers. says the Boston Herald.
One of these requirements is that the
rate of dividend cannot be increased
without a corresponding reduction in
the price of gas. 1t appears that
to this end the South Metropolitan
company last March reduced its price
by n penny, making the rate about
fOrty-eight cents, which was equiva-
lent to "a saving of nearly $40, 900 q
year for consumers. In consequence
there had been a large increase of
business, equal to five and three
fourths per cent over that of the cor
responding period Of the correspond
ing year. The number of consumers
and of gas stoves in use had increased
to d remarkable extent. The company
puts out gas stoves on hire, and the
number of these increased from 21,600
to 20. 705 in one year. The practice of
putting in penny-slOt meters and small
gas stoves-first introduced, we be-
lieve, by the city of Birmingham with
its municipal supply-has been adopted
with great uccess by this company,
meeting a demand of the working
classes without making, it is claimed,
any surplus profit. The number of
penny-slot customers is now 10000,
who used 24O, 900, 900 feet in one year.,
at a profit of about $780, 900, of which
nearly $4,000 went to a further re-
duction of price.
For four years the company has
tried a profit-sharing system, and the
experience, in promoting efficiency of
service on the part of employees, has
been so gratifying as to justify the in
crease of the bonus, on condition that
one-half be invested in the company's
ordinary stock. Employees, therefore,
now receive II per cent on their sal
aries and wages for every penny at
which gas is sold below 66 cents Il
thousand. In five years over $3.50, 900 !
has thus been paid to employees, ne
half of which is deposited with the
company at 4 per cent. The company
pays q dividend of Is per cent, but
being entitled to pay 49, per emf the
remainder is carried to the reserve
fund. Referring to the deputation
which waited upon Hon. James Bryce
the other day, in behalf of public
ownership of the gas supply,
the chairman of the company
very naturally found grave objections
to such a course; it would mean an
outlay of something like $3.50, 00O, 900
for the purpose, and he doubted the
ability to manage the business as a
|
public enterprise, a doubt that seems
hardly justified by the experience of
other large cities in Great Britain. He
held that would have the
worst of it, and would have to pay
more for their gas in order that con-
ume of electric light might pay less.
But that dividend of thirteen per cent
annually is what sticks in the crops of
consumers. If the company earns
such a profit as to equal its entire cap
ital stock in less than every eight
years they reason that under public
ownership the capitalization might
soon be wiped out, and the consumer
be given the advantage of the present
enormous profit in the shape of low
rates for then. gas.