The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1905-11-07

1a"--' -. AZ. n.
| trolling the supply on your distributing
| system and even with this expenditure
| the valve is not regulated With any de-
| gree of intelligence. This sisL clearly
| shown by the pressure charts taken ut
| s1e upper works. S1A
a considerable saving couldssbe effected
| in your commercial department by
| adopting moro modern systems Of ac-
counting. and by tho use Of mechanical
| appliances
Tho whole attitude seems dramatically
! opposite TO that of a private corpora
ton. You take the position of doing
favor to the public by supplying service
This Is meant as no reflection on the
personality of the employees but is most
decidedly reflection on your system.
To give proper service to the public and
properly maintain. your property, your.
costs for general expense. COM
mercial expense. distribution, ETC..
would, with the most efficient
management. be nearer IS cents
per 1000 cubic feet than the present fig
ure Of II cents. It would be natural to
expect your lack of expenditure for prop
or service and maintenance to be re-
Elected more markedly in other depart
ments of your business than is the case.
1t Is shown to a certain extent in yonr
leakage, TO n greater extent in the pres
ent condition of your supply system.
and in the fact that you are facing
large expenditure for extensions and re-
placements The effect of your policy is.
however, moro clearly shown In the
poor service to the consumers and their.
present attitude.
Gas Unaccounted For.
s,r,,r e.,
your records and our estimate of con-
sumption. has for the past three years
averaged about II per cent. should due
| 10 probable error In station meter regis
! tration. be reduced 3 per cent to ) per
cent. leaving an actual leakage of 10
| per cent to IA per cent This is still TO
| per cent higher than 1t shculd be.
| You have no comprehensive system Of
| repairing main and service pipes and a
| high leakage would be expected. You
| cannot however, assume that all gas
unaccountcd for escapes from your hold
| crs and mains rs leakage for with your
| system 6rilnck of system. of keeping
| account Of your meters 1t is more than
| probable that II number OF meters are
| passing gas to consumers for which the
| city is receiving no return.
Income.
| In arriving at the yearly income CT
| vour property, an attempt has been made
| to treat the operation of your gas works
as n business enterprise distinct and
/ apart from the municipal government.
| In 1897 by resolution of the Council, the
| value of your property was fixed ut
| 100000 on which sum there was to he
paid a per cent per annum. Since that
time there liavtf been other bond issues
aggregating $4,000 and bearing the same
rate of interest, fla n
! In our tables showing the net result Of
the operation OF your gas property, we
| have Included the following items:
/ First
The actual cost Of labor and mater
ial as shown by your books and prop
erly chargeablet ito operating expense
| Second
Am item of taxes on the assessed value
of your property at the current tax
rate Our reasoning being that in reach
| ing an Income derived from any depart
mcnt Of the city government. this de-
partment should be treated MS you would
a private enterprise: In other words
entirely separated from the city govern
mcnt tDf trH.sf
Third
Your property has been allowed to ,ur
down TO such an extent that you arc
now called upon to expend the sum Of
$4,000. We estimate on II most conserva,
tive basis, that at least 100000 Of this
sum is an expenditure which Is properly
clurgcabe against your operations IL
the past. and should really be distributed
over say the past ten years at the rate
of $50, 900 per year. In our tables for the
years 1902, 1903 and 1904, we have entered
THIS charge of t29,oD against each years
operations.
Fourth
s You have during each OF the years II
I question spent certain sums upon ex
4 tensions The cost 'of these extension.
was not covered by bond issue, and ac
cordng to your code cannot be charge,
4 to capital account. They are according
I ly included In the operating costs.
4 Fifth
For carrying on your business yo;
4 utilized a portion of The City Hall, w
estimate that your Office rental, incudin
heat, lighting, attendance, your lega
expense and other such miscellaneou
A items which are actually paid for out &
a the city treasury but are not charge
\ 10 your gas works would amount to l.
Il per cubic feet of gas sold
summary OF these various items Il
4 the year 1904 would be as follows:
n Ter D
X Total cost Of labor and materials
\ on basis of sales ......,,,.,.,,.... bs
81 Taxes ,.t.,..,, ,.f,...,... ~. %
"a i'tplhcihNiol .+-s..., ''.l''' 'op
ii interest on bond issues ........... IA
f Disbursements ...... ....,. 90
III Miscellaneous expenses, such as Of
n flee rental. legal expenses, etc.. o2
"a 49,
81 Total ........ 90
II In considering these figures IT mu
u be borne III mind;
n Frst That due to the situation
n Richmond YOU arc able to obtain q
n coal at $3.50 per gross ton. Wcro "
81 Obliged 10 pay 81 additional for coal 80
u holder cost OF coal gas would be increas
u approximately ten cents per 600 cur