The times. [volume] (Richmond, Va.) 1890-1903, 1899-08-08
DOES THE GAS
PLANT PAY CITY?
. A CarefuIIy-Prepared Statement That
Proves That Il Does.
WAS MADE BY CITY OFFICIALS.
Based on the Records aud Figures OF
Expert Accountant Boudar 49, "A
Difference in Favor OF City OF
S3,s70.s2 Year.
WAS MADE BY CITY OFFICIALS.


sentatiycs Of the local syndicate tormeV
10 lease the city gas works for teri"
Of years:
careful investigation shows that 'he
surplus Of So .Os.u 10 tho credit OF 'he
city sas works includes the gas usea ]"
pnblic consumption az the same price
charged TO private consumers TO inc
amount Of Sl.5s6.M33L Consequently an
the proft which the city has derived iio"
The gas works IS in the gas WHO" ~
civ has used for its own purpose. "o
gas which the city uses Is not pIopelS
credit IN this regard as the BID mace 10
the city one year ago speclhodHy STU
mat All gas used by the city, not 10 eN-
ree5 sooaac coo cubic feet. would be iut-
rished free OF charge and besides the
city street lamps would he Kept IN orucI
and lighted free OF charge TO the city.
.The report includes Also as pfoht
IN the civ. the amount paid by the Narl-
Gus departments. such as streets GROUNDS
and buildings. etc. into the city treasury
out Of appropriations made by me Oi'y
Council 10 these several departments.
Taking the official report as a basis and
deducting simply the surplus when IL
gives 10 the gas works from the amount
credited on account OF public consump-
ton. that is. s. 5e6oi3Sl. the cash deficit
will be tai2 1850
As an answer 70 the above. and as Civ
ing the view held In official quarters. the
following has been prepared by one OF
the gentlemen connected with the Gas
Inspectors office:
AN OFFICIAL VIEW.
The statement OF Mr.. Henry y. Boudar,
showing the surplus 10 the credit Of the
of
which has recently been published. was
prepared in accordance with the ordi-
nance providing what charges should be
made against the gas works and the
credits 10 be allowed in arriving at the
income derived from the same The price
fixed by the ordinance for gas used by
the CITY has not always been the same
as the price charged private consumers
The last revised edition OF the city ordi-
nances was adopted and printed IN l@a.
In these ordinances the price 10 private
consumers was fixed al $50 per thou
sand and 10 the city $40 per thousand
less than actual cost Of production at that
time.
section 50. chapter o. Of these ordi-
nances provides that tho income derived
from the gas works shall be sufficient,
after paying all expenditures therefor TO
pay interest on the cost Of the works.
The cost Of the works is fixed at Sl.0e0oV.
which shall not be added to hereafter
except by such expenditures for the
works rs are paid by the issue Of bonds.
The price Of gas shall be reduced every
year on the first OF February 20 such
sum as will afford an income sufficient
70 pay interest on the cost Of the works.
In accordance with this section and for
the purpose OF giving the works their
proper credit for public consumption,
thereby increasing its income and forcing
q reduction Of the price Of gas 10 private
consumers. Mr. Michael Murphy. a MEM |
Der 81 the Board of Aldermen and the |
Finance Committee. IN December. ISL |
had tho price allowed for gas furnished |
the city raised 90 the sum charged private |
consumers.
WHAT ORDINANCE MEANT.
II was clearly the intention OF the |
trainers Of the ordinance that after the |
city had been reimbursed for the money |
expended on the works. the income should /
only be sufficient 20 pay interest on the /
value Of the plant Therefore this large /
surplus Of $3.50 o547l 10 the credit Of the
works should be returned 10 the gas
consumers IN Improvements 10 the works
and cheaper gas
In the past thirty wears the price Of |
gas has been reduced six times-from
8 % 20 500 per thousand cubic feet-and
the present price Is less than charged
in "A majority Of the cities Of this coun- !
try In their proposition the syndicate
asks the privilege OF charging this price
for the next thirty years. regardless Of
the probability OF the cost of production |
being greatly decreased in that length Of
time
7 cannot see any Justice in charging
Interest against the works and not allow
ng any credit for gas furnished the city |
The material and labor necessary 20 pro-
iuce this gas cost money. For a long
lime the streets OF the city We're lighted
entirely by gas. and the electric lights
needed 10 supplant these gas lamps has
already cost the city about $4,000 How
aver. the average reader will see the un-
Of this contention. and
how unfair 70 would be 10 make the gas |
consumer bear this burden In addition
10 paying interest on the money borrowed |
rom the city.
The 100000 cubic feet which tho syn
licaie proposes to give the city annu-
ally Is Just as much part OF their bid
10 induce the city 10 lease the works as
he $4,000 offered I'm cash. and OF course
hey can affOrd 10 give more IN gas than
money Now let us reduce this gas and |
he gas furnished the city last year 90
money and see exactly what would have
been the profits 10 the city with the
works in the hands OF the syndicate as
compared with the profits the Auditors
,ooks show she actually received after
all expenditures Including eN-
ension. which. being a permanent inn
ir0yement. is not a proper CHARGE.
sYDICATE'S PROPOSITION.
The syndicate proposes 10 give the city
n 600 In cash 100000 cubic feet In gas,
nd per cent on the gross receipts an
iaany and light the street lamps and
.eep them IN order provided they are
tlven a lease for thirty years and al
owed 10 charge our consumers $40 per
cubic feet for that length Of
line. The cost OF production OF gas last
ear dncluding lamp lighting and ex-
ension. which are not proper charges
gainst the works I'm making this calcu-
atom. was IS "a cents per thousand ,
ubic feet which would make the 5000 900
ubic feet cost Sizes. The gross re-
eipts last year were 1874 295 g. per cent
Z said amount being s9141S. Lamp
knitting cost s29la4. making the total I,
mount OF their proposition in dollars
nj cents S7065422
According TO the Auditors books the
xcess OF receipts over an expenditures
&%2.75 for extension and
'si4.H for lamp lighting for last year
as 81 o. OF which amount $500 was
ala by the city for gas used IN public
ulldlngs land this Is the first fun year
he public buildings have paid FOR cas-
hey consumed. will deduct this I
mount and add fl TO public consump-
on leaving $Cl.79AO4 and making public {
1873 200 cubic feet which !
q cost Of ~ "a cents per thousand
ould he $s7S3 - making total Of ,
g. 53i - IN favor % the works. !,
SO We see. after allowing the gentle /.