Evening star. [volume] (Washington, D.C.) 1854-1972, 1896-05-05
EFFECT OF CHEAP GAS
Great Increase of Its Use Wherever the
Price Has Been Reduced.
Some Interesting Facts Gathered
Country and Great Britain.
To the Editor Of The Evening Star:

10 the fNltOr OF Ine Evening Star:
Your correspondent Gas JET Is cor
rec. in saying that cheapening the price
of gas increases the consumption and ulti-
mately the profits Of the gas companies.
This subject was discussed at the meeting
of the Gas Light Association in $780, and
some important facts bearing on this
poirt were stated by members of the asso-
citation. In quite a number of the cities
the gas companies had made special eff
forts to induce the public to use gas for
heating, cooking and for power for which
purposes they made discount of from
% to SO per cent, besides furnishing gas
stoves at cost, and in some cases renting
them at rate that would pay for them
in five years, when they became the prop
erty of the gas consumers. In every in
stance the companies reported great in
crease in the amount of gas sold and in
crease in their profits. One of the advan-
tages to the companies was that ii enabled
them to utilize their plants during those
hours when they would otherwise remain
idle. In Columbus, Ohio. and several other
cities the price was reduced 80 cents for
heating and power, and the president of the
Columbus company stated that 22l2 per cent
of all their gas was used in the daytime
thereby increasing their output that much,
and that it paid handsomely. He also said
that the gas companies ought to be liberal
and generous and satisfy the public. which
a great point to gain. Mr.. Pearson,
these statements, and said that in conse-
Quence of reducing the price 80 cents per
1000 they had in use at least 800 gas fires
and stoves
Mr. Pratt of Des Moines, Iowa. said they
had reduced the price for heating 30 cents
per 1000, kept a stock Of gas stoves on
hand and employed a lady to give lessons
in cooking by gas, and found that 1t paid.
MIR. Taber of Providence, r. L. said that
in New England the companies had got
out more than 10000 gas stoves by reduc-
ing the price 30 cents for such use of the
gas, and that the output Of gas had been
increased thereby from % to 30 per cent
How different the course pursued by the
gas company here! More than ten years ago
| proposed to the Washington Gas Company
to do the same here, but the president. Mr.
McIlhenny, declined, the company has
ever since. One of the reasons assigned was
that the law did not permit it to discrim-
mate in the price to customers to which l
replied that would not be discrimination,
rs all who chose could have it at the same
price and that if that was an objection
Congress would readily change the law in
that respect. He finally said ''Of course,
they could sell gas cheaper. but they did
not propose sto do so until they We're COM
PEELED to- and that is the spirit the COM
pany has manifested ever since, and does
still.
1t is self-evident that with gas. with
everything else, a reduction in price causes
an increase in the consumption: and mas
much as the gas works almost uni
versally capable of making much more gas
than is usually made, this increase in the
quantity requires additional capital or
increase of the plant. but merely the cost
of the additional material and labor. and,
as l said to Mr.. McIihenny, even though
the profit the additional gas sold at a
reduced price might not be quite as much
per 1000 as on that sold for light, still what
ever profit they did make on it would be so
much clear gain-so much added to their
other profits. The above statements from
the companies who have adopted the plan
show conclusively that such is the result
and 1t is remarkable that this company and
its friends in the Senate committee cannot
or will not see it.
But much stronger is the evidence which
comes from the experience of the gas COM
panies in Massachusetts. In statement
recently made before committee of the
Massachusetts legislature by Henry NJ
Whitney, and published In a supplement to
the American Manufacturer and Iron World
/ find mass of data as to the increase of
the consumption of gas in consequence of
reduction in price. From this Gull the fol-
lowing facts, want Of space precluding Civ
ing the whole:
In the first place he gives list of the
principal towns and cities in massachusetts
seventy-three In number, the amount of gas
sold. population, price.number of families
ard the number of meters in each place In
four towns there was one meter to three
families; in ten towns, l to 4; in seven
towns, l to 5; in nine towns, 1 to 6; in
eight towns, l to Z; in four towns l to S:
in one town, TO 8: IN ten towns but one
meter to each ten families, the amount of
gas sold in the different towns varying ac-
cordingly.
This, he says. is due to the difference in
the price charged for gas, and he proves 1t
by comparing Lowell, where gas is sold for
$1-06. with Fall River, where the price is
Sl.37. Lowell supplies also Dracut and
Tewksbury, in all population of 10000,
ana one-half of all the families are supplied
with gas. while in Fall River, which has
population of S9,20%, only one in seven six
tenths of the families use the gas! Could
anything be more Instructive as to the
beneficial effect of reduction in price?
In like manner he compares other towns
ard cities in Massachusetts with Lowell.
and shows that taken as a whole not over
one family in fifteen, If more than one in
twenty, use the gas. He adds: They have
never been customers, and under existing
conditions and circumstances never can be-
The reason is apparent. 1t Is because gas
is so high
Now. turning to Great Britain the illustra-
ton is still stronger. In a publication en-
titled AN Analysis Of the Accounts of the
Principal Gas Undertakings in England,
Scotland and Ireland for 1888" the latest
at hand, the following is shown:
Se!gSgSESssg- 9sEssegs