The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1897-02-24


from the charts prepared by our Sec
retary that between the dates of Nov
1O and 26 there was a fairly good aver
age pressure on the high-pressure
lines, but that the citizens were not
given the advantage of this pressure
put were given a mixed gas at lower
pressure, which is insufficient to sup
ply the demand of the consumers.
Your committee next held interviews
with the Salt Lake & Ogden Gas &c
Electric Light company. H. L. Driver
& Co., and the New American Gas &
Fuel company for the purpose Of as
| certaininS whether or not the. state
ments made by them that their busi-
ness was being and had been
! carried on at a loss to all parties was
! really true. This claim appears to
your committee to have been well
| founded.
In the month of October 1896 (Octo-
Ter being considered an average
month, it being in the middle of the
| seasons, and is generally looked upon
as one in which the consumption of
gas is fairly averaged for the year,,
/ the gross readings of the retail meters
showed a total consumption of 3,S64,0O
cubic feet of gas consumed in this
city, from which a total revenue was
tracts the wells companies would re-
ceive $40 of this, leaving $1,000 for the
Salt Lake & ogden Gas & Electric
Light company. The actual operating
expenses for that month for the Salt
Lake & ogden Gas & Electric Light
company were S941, leaving a balance
of $59. The actual operating expenses
of the wells companies was $3.50, leav-
ing a deficit of S310 In November the
Salt Lake & Ogden Gas & Electric
Light company shows an operating
expense of s1,777.7O, with no increase OF
income. The wells companies show
an operating expense of S649, with no
increase of income. 1t is apparent to
your committee that this natural gas
business cannot be carried on indefl-
niteiy unless the revenues are mater
! tally increased. We have therefore en-
/ deavored to fix the minimum prices to
be charged for the natural gas at such
figures as we could recommend to the
citizens of Salt Lake City, and We
suggest that you petition the city coun-
ell asking that they be adopted as an
amendment to the prices named in the
existing franchise for a limited term
of years. This will increase the in
come of all parties to such a point as
Will pay their operating expenses ana
leave a very small margin with which
they are satisfied TO operate for the
present. looking to future extensions of
the business for an increase of profits.
The Salt Lake & Ogden Gas &
Electric Light company estimate the
value of their plant at 100000 for the
old city plant and city mains and $780,
600 for the high-pressure mains be-
tween the wells and the city, claiming
that even at the present time, with the
low prices obtaining for pipe and labor,
this plant could not be duplicated for
less money. 1t is certain that, based
on their first cost, this is not an un-
reasonable figure.
The physical condition of this plant,
as compared with others in the United
States and elsewhere, shows it to be not
as good as most, but not as bad as
some. The percentage of leakage in the
city mains appears to be about 25 per
cent of the gas received at the gas.
works. The high pressure line, if
operated under the limits defined by
the distributing company, appears to
have a leakage of between Is and 20
per cent of the gas turned in at the
wells, but at high pressure the leakage
seems to be excessive. The data upon
which this estimate is figured is, how
ever, contested by the parties at each
end of the line, each claiming that the
others meter measures incorrectly, and
it is possible that both are right in the
claim. It seems unfortunate for the
public that the whole system is not
under one management, for had this
been the case the iamentable lack of
cooperation, which has now existed
for some time past and which is un-
doubtedly the cause of a great deal of
the past trouble, would never have
existed.
After conferring with the Electric
Light and Gas company with H. L.
Driver & Co. and with the New
American Natural Gas and Fuel COM
pany, it has become apparent to this
committee that the Salt Lake and
Ogden Gas and Electric Light company
should have an average income of at
least $2.250 per month, and the other
companies a corresponding increase,
income il will be necessary for the
light company to charge for gas for all
purposes as follows:
First 1000 feet of gas, S1.25 per thou
sand, and so cents per thousand there
after. If the city council should so
amend the existing franchises as to
allow the gas company to charge the
above rates, the citizens may be as
sured of a good pressure, as the said
company will guarantee to keep their
benches hot the year round, and
should there be a temporary failure
in the natural gas supply at any time,
they will supply to this city manufac-
tured gas to the amount of 80 per cent
of the deficiency, for period not to
We have found the gas question a
three-sided one, represented by the
producers at the wells, the distribut-
ing company in the city and the con-
sumers. The producing companies |
must have reasonable price for the
gas or they will have to go out of
business. The distributing company
must have reasonable price to enable |
them to pipe the gas into the city and |
il to the consumers, and the |
gas must be sold at price low enough |
to meet the approval of every fair |
minded citizen. If the above conditions |
are not met the natural gas will be /
lost to the city. Realizing this, your
has unanimously, with one |
exception. decided to recommend the !
prices named above as fair and just to |
all concerned.
citizens committee go to our city |
council and ask that the amendments !
to the existing franchises above sug-
gested be made at once, so as to pro- |
tect not only the consumers, but also |
the producers and the distributors,
who have been working so long at a
and loss.
THE MINORITY REPORT.
To the Citizens General Committee on
Natural Gas, Salt Lake City.
Salt Lake City, Utah. Feb. g. 1897.
Gentlemen:-While l entirely concur
with the majority report as regards the I
physical fact contained therein. I cannot
and do not endoi-e in the recommenda-
tons made as to the action to be taken by
the general committee on the proposed
amendment to the franchise of the Salt
Lake City & Ogden Gas & Electric Light
company
From the actions of fhe Electric irht !