New-York tribune., 1900-07-16
GAS PRICES COMPARED.
THE SITUATION IN LONDON AND HERE
ENGLISH LEGISLATION ON
THE SUBJECT.


making the present (naximur) price shillngs
and pence thousana, or. say. s. cents with an
announced further increase to follow. These ad-
vances over the prices OF last year are attributed
to the increased cost of gas coal In view Of the
similarity Of the gas situation this city It Is OF
interest TO consider the way which the price OF
gas is regulated under the English statute.
The first general provision upon this subject was
contained in the Gasworks Clauses Act. lS4'
DOLL Vic. Oh. 15- This related only TO com
panies to be subsequently Incorporated. and fixed
the allowable annual dividend 10 per cent, where
different might be prescribed in the charter
OF the company, but provided for cumulative dlVl-
dends where the rate OF dividend in any year had
been less than the maximum or prescribed rate as
also for the accumu}a ton of reserve fund equal
to 10 cent or the capitaD meet any deficiency
IN profits and any extraordinary claims This act
1 applied not only to London. but to all companies
/ III Great Britain and Ireland.
The next general provision was contained in the
Metropolis Gas Act 1860 23-24 Vic Oh. l25), which
was confined to London. At that time thirteen
companies supplied gas within the metropolitan
area. and the 1rst object of the act to define
the districts within which the several companies
might operate. and TO conine a single company TO
! q single district. This was done, a the act re-
cited. in order to economic capital and avoid
the too frequent opening Of the streets The act
then provided a standard of Illuminating pow
e. and purity, and fixed the standard dividend at
u cent. before and the standard price at
the taken by the several companies on Jan
uary !, 1850 beyond which rate, If it exceeded
}
creased, unless the increase was warranted ny
such increase in the cost of gas any other
circumstance affecting the company as will war
rant such advance" TO be determined by arbitra-
tors designated by the Board Of Trade
OF the thirteer companies mentioned in this act
ali bEt three have disappeared in the process
Of consolidation There remain only the South
Metropontan Gas Company, created in 1853 by the
consolidation Of three companies operating the
south side Of the river: the Commercial Gas Com
/ parry. created in 1875 by the consolidation OF two
companies operating the north side Of the river
and the Gas Light and Coke Company. created in
| 1876 by the consolidation Of the remaining eight
companies The amended act Of consolidation of
tee first company. 3s-40 Vic. Ch. 229 and the con-
/ solidaton Of the two other companies 1888
Vic ca 2O0. and 1910 VIC Ch 225. constitute the
/ present statutory law governing the companies in
! respect TO dividends, insurance fund against
STRIKES" etc, reserve fund and Illuminating pow
! ana purity of gas
In regard to all these matters the three acts
! essentially Identical so NAT statement Of the
/ details of one OF them viii for the others
! also
The chief innovation found in these acts is the
provision for dividends On sliding scale, arranged
! inversely to the price of gas q provision which
/ pursuant 10 standing orders OF Parliament first
adopted in 1851, rllst be inserted in all char
ters for Kas companies. he provision in the Gas
/ Light and Coke Compa1y's act is follows:
Section %. The standard price to be charged by
H hue RS rs AlsaT T ana an Coy C"'paHy LOT gas suPPea @
bt oy eF snam D sIIl,IHEs ahc = pence per 1ow
crease or diminish such standard price subject TO
dividend as defined oy this act 90 per cent? TO be
/ calculated as follows:
excess or in drninution OF such standard price in
such year be Tedu1ed or incr9aseo BT shIH1Ps
in the hundred pounds per anuum (one-quarter Of
! l Ter cent?. .-s- ..
/ This provision gives the company an obvious IN
terest in reducing the price 1s&s7b the practice
OF all possible economies and tlEe Of the most
! improved methods OF manUpactGrs and the In
terest Of the company is th Us nTadeA identical with
] that Of the consumers. The effort of the company
will always be TO reduce prices and an increase
! VIII be made only because existing prices are be-
low the cost Of production too to II TO ad-
/ NIT of the authorized dividends
With gas at shlllings and pence the company
is enabled to declare dividend OF I1s4 per cent
/ and the recent increase to shillings and pence
reduces the dividend 11a per cent
The act also provides for the accumulation out
/ Of profits in excess Of dividends OF Insurance
fund against accidents, strikes etc. equal TO one
+ twentieth OF the capital stock. and for reserve
fund unlimited in amount.
/ Respecting the quality OF the gas the provision
Is that the referees appointed by the Board OF
Trade shall from time time ascertain with
what degree OF purity the company can reasonably
be required to make and supply gas continuously
/ without occasioning nuisance TO the neighhor-
hood in which the works are situated and shall
thereupon prescribe and certify the maximum
amount of impuTtty' TO be allowed, but the gas
shall be wholly free from suIphuretted hydrogen
. intensity equal sixteen candles.
comparison with the situation in New-York
will be Instructive
During the last year the Consolidated Company
has paid dividends the rate OF per cent and
there is strong ground for nferrtng in the absence
Of the figures, that this whole dividend has
from the reserve fund. and that an additional sum
had 70 be taken from it in order meet the ex-
penses of manufacture and DISTRIBUTION Il is
known that the New Amsterdam Company found
itself without means to meet its interest payment
falling due this month. and that the control Of
that company acquired by the Consolidated
Company because II could no longer exist and carry
the destructive rate
The statute limiting the price Of gas in this city
Is Chapter $50 OF the Laws Of 1897 fixes s. o.
year thereafter the prices for gas furnished the
city will be respectively 92a and so cents for
fve-foot burner IS fixed al twenty-two candles in
stead Of sixteen candles, the London standard
the New orK Slaluue are made solely for the
benefit OF the public, without consulting in any
! exclusive FghL 10 any particular district is as
{ sured 70 any company. as had been done in Lon
don as early as ls4; that the price is fixed without
: regard 70 me oIVlIends winch protts may afford,
though labor is Ear more expensive here and
are no -lsher ana that noLW1ths sJanding this, the
companies here required furnish gas OF an
I!-IiliIdL4Ie dIii1sI ~ nlgher than
that required IN LONDON. Ihe result Of this IS
that considering the difference in Illuminating
power the customers of the Gas Light and Coke
which the New-York statute requires the com
panies in this city TO furnish for s. %.
1t would seem that tUrther legislation in this
State should De enacted only with provisions
which may have regard 70 the public interest and
what in the line Of the clauses Of the acts under
which the London companies operate.
/ MISSIONARIES SPEAK IN CINCINNATI
+ CLOSING FEATURES OF CONVENTION OF RAP-
I ,-,---,-~ ur-~.r,, r,,,