The times. [volume] (Richmond, Va.) 1890-1903, 1897-06-27

Oh lie kdS-WOThS, dS tut Ndihc dAu hoAi
agcmeat Of the works here are now a
su,itc. OF public interest to our tax-pay-
ers In view OF an effort being made to
induce the council to reduce tho price OF
gas for fuel purposes. and or an oner
TO purchase the same. As L explained
I'm my last article the Huddersfeld gas
works were formerly owned by a pri-
vate corporation. but after the town
received its charter OF Incorporation were
purchased by the town council. At that
time they were wholly inadequate TO meet
the needs of the town and were supplying
gas gas at a high price and paying the
stockholders large dividends. AS a con-
sequence OF the very profitable character
OF the undertaking the price which the
council was compelled to pay was n
high one. Immediately after the purchase
was completed the council undertook the
work OF charging the plant and extend
ing the mains, thus making them
adequate TO the needs Of the town and
at the same time reduced the price OF
gas. The effect of this policy was 10
enormously increase the consumption or
gas and so carefully were the works
managed that Notwithstanding a total
capital outlay OF s1,592,095 up to March.
1895. they produced every year n large
profit after paying interest on this out
lay. providing for n sinking fund in ac-
~ E'-s ~
law. sufficient 10 repay the capital Dor
rowed within the period allowed. n large
depreciation fund 70 provide for the re-
newal Of the works. and their due pro
portion along with other property or the
city taxes. This profit. which exceeded
$4,000 per year. was carried TO the creoi,
Of the tax account OF the town and ov
that amount reduced the sum necessary
to be levied from the taxpayers. In
! 1895 the gas committee realized thai, not
withstanding the success of the works
and the fact that, although then only
charging So cents per thousand feet FOR
the gas. they must remodel the "olhS
I'm order successfully TO compete WIN
the electric light and thus continue 10
make the undertaking profitable 10 the
city. They must produce a gas OF high
Illuminating power at less cost for pro
duction. The council approved this ac'
ton OF the gas committee, but required
that the cost of reconstruction shouln
be borne out OF the fund set aside TOT
depreciation. so far az that would snince,
and any deficiency should be paid OUT
Of the annual net income or the works
until extinguished. thus refusing 10 IN
| crease tho debt upon the works.
Tho reconstruction was undertaken on
these terms and the balance or cost
charreable against the income was on
91st OF March. 1896. 1921 $50. The works
thus being placed in frst-class order the
gas committee was. on tho 3lst or Niarch'
1896. able TO make tho following showing
az the result OF the years WORKING
Tha ealo ~ gas 10 private consumers and
tho town council for public lighting pro-
duecd ssl4 go. The price charged 10 con-
umers was rs cents per ono thousand
feet. The quantity OF gas produced was
about 5000 900 cubic feet. of which 49,
os2. 400 cubic feet was sold TO private
consumers. The Income received from
the sale Of tar and other reslduals ana
from sulphate OF ammonia made at the
works was &6. 35. Sundry other items or
receipts amounted 70 1890. Thu the
total income produced by the gas works
In the year Of 1896 was Si02.5 The total
cost OF producing this income. Including
all charges for labor. salaries INCLUDING
the salaries Of collectors who collect edch
gas bill at the consumers house or place
OF business). maintenance or works, re-
newal Of mains. and services, etc, was
s2J0 OS5. OF which sum only s41. 40 was
paid for labor. The gross profit therefore
on the working Of the undertaking was
sl52 40 for the year. Out OF this pront
the gas committee paid TO the town
| council for taxes on the works, mains
and plant, which are assessed In me
same way as all other property In the
town, tina IS to say on their rental
value from year 10 year the sum Oh
$40 so they paid s61. 90 the annual inter-
est on the capital sum actually expend-
ed in the purchase and extension or the
works. and they set aside and invested
the sum Of $40, the amount required
10 repay the loans raised for the gas
works I'm the period limited by the law
authorizing the loans. After these pay
ments had been made they still had IN
| hand a balance OF $50, 40. which. under
| ordinary circumstances, would have been
| available for reduction OF the amount
required 20 be raised from taxation ana
would nave been so applied but Tor
the debt still remaining unpaid on the
reconstruction OF the works In the pre-
vious year. This sum was applied In re-
duction OF that debt OF 1921, $50 which NJ
this rate Of reduction annually VIII be
discharged in a little over 1--we years.
Here. then, we see that Huddersleld
actually received from its gas works
| undertaking q net profit in one year or
81. 975 over and above the payment or
all interest on the capital invested In
the works and Of the necessary sum
| %eduired for the redemption OF the cap
| ital. The wisdom OF re-~constructing the
works and adopting the most recently
Invented and scientific system OF gas
making is clearly seen by a comparison
| OF the details of the accounts before and
Since lIf (l1Hkfs DI 3O1N u Nho 49,"
terials and labor required has been large
" reduced and gas in the last year was
produced at a cost OF only 81 cents per
thousand feet, after allowing for the
money realized from the sale OF the
residuals. The value OF these residual
products has also been materially IN
| creased by their conversion into n I'm
ished marketable product. They actually
last year sold for nearly one-third as
much money as the gas Itself. TINS
experience also demonstrates how short
n life a gas plant has in these days or
scientific invention and advancement.
| Although only purchased and recon-
| structed in 1869. and kept constantly In
| the most complete repair with new plant
as needed, yet in 1853. only fourteen years
afterwards, the whole Huddersfeld plant
required reconstruction at a cost or
over $500. 600 in order to meet the altered
| conditions in gas production.
Let us now turn TO the Richmond gas
undertaking and compare its financial
| condition with that of Huddersfield. Both
plants supply a Ike population and have
n monopoly within their district or sup
ply. and are both owned and managed
by the city councils. Last year the
superintendent OF the Richmond WORKS
| reported that the total production or
gas was 1885, 80 feet. of which 1eo, SS6,2 $50
feet were sold TO private consumers ana
the balance. less breakage and conden-
sation. was supplied TO the city for pubic