The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1906-04-23

thirty years. ~ llciclotS pi'N -. :. -
brief statement win represent what MI.
penliss proposes to do Or to Undertake
annually:
no furnisi, to the city, vi hout gt
cost, gas TO the amount Of. -1oZ9'W
70 pay the interest annually az
tie rate OF 4 per cent OF, 81 J.,
81 01G0iuCo.. observation-disclosures eo'oVV00
70 provide nf[snling fund sulli-
cient tODtu, Y 81, S.S, Ds1. CphHt nle in'l5
end orstlilrty years twl,itilds2gs asicooo'
$3.50. Fsel ssf .GFt ----------
Total annual b,ltdens......s... lVo'ezo.W
Fifty Thousand Increase.
The gas works earned IN 1904 q have
rot the figures for 1905 before mel one
hundred and forty.four thousand dollars
(S144O 0o) and It Is estimn ted by competent
experts that the present 'works would pc
so improved BIZ the expenditure proposed
that the profits would he Increased at
least nifty thousand dollars $4,000 per
.unn,,n1.-so The gas works with the pro-
posed improvements and under the pres
ent management would earn net at least
one hundred and ninety -four thousand
dollars (sl9i.O00) per nnntln., or, IN round
numbers, two hundred thousand $500 OOtD
Il year. This condition OF ,nfqirs would
leave one, hundred thousand dollars Sloo'-
ND) net profit for the lessee. Net profits
of one h,indred thousand dollars a year
would in ordinary business justify capt.
talization on as per cent. basis OF two
millions Of dollars but gas and water
works differ from Ordinary business
operations because their value increa ses
constantly with the increase Of populn-
tIon and consumption and because thGH
are practically free from competition, ana
have a fixed and certain demand ~ for tne
output which cannot be affected ma eral-
ly by any depression In business 81 Or any
Of the ordinary difficulties which besct
those enga gcd III large mercantile or In
dustrlal pursuits These things being
true, have no doubt whatever that !
could easily dispose of}such n proposition
as Mr.. Beinlss has made after It's accept
ance by the city for a bonus of&f1ve hum
dred thousand dollars s5OoO0o) and
I am not at all sure that such
a lease could not be sold IN
New York for one million dollars (s1,-
100000 or more. This suggestion is not
consideration the great increase Of revc-
nue., which Is sure to result from the
growth of the city and from the increased
consumption Of gas as the years go BY.
Yield Immense Sum.
It is not at all unreasonable to sup.
pose that before half Of the term of5thir-
ty years had expired the gas works would
yield a net profit Of two hundred thou
sand dollars ($o00O00) per annum, and
this would represent n : per cent captali-
cation Of four millions (S4,Oo0ooO). i am
of the deliberate opinion that the gas
works could be sold for cash for a sum
Of money sufficient, IL properly invested
annually, to redeem every dollar OF the
present bonded debt OF the city of Rich
mond rs it natures. Z am quite sure
that with the absolute control of the gas
works and its privileges l could form
a company which would agree to rum the
works and redeem the bonded debt as It
natures. In other words, the present
earnings of the gas works arc sufficient,
If invested annually to redeem the bond
ed debt Of the city. Not exactly. perhaps,
but practically sufficient. At any rate, if
IT could be arranged to pass over the gas
works on such a contract,'I could organ
lie a company which wonld agree to take
tho works and redeem the bonded debt
as it natures, and the company under
taking to do this would make money!
With the two plants, the gas works and
the watcrworks, J. could easily annihlate
the entire bonded debt at once because
there are hungry millions Of idle capital
In New York, which would not hesitate
one moment upon the presentation OF the
real facts to take over these two Hants
The two plants together, with tieir fran
chises and rights. would be Infinitely more
reliable for revenue for indefinite time to
come than q gold mine. My principal OBJ
ject In stating these facts is to give some
conception of the value OF these two
plants and to dissipate any foolish desire
to waste them in order to satisfy the
complaints of a few dissatisfied and criti-
cal citizens. II tG
Improvements Necessary.
In spite of all that has been said TO
the contrary, the gas works OF the city
of Richmond produce gas OF very high
grade, and IT is probably not surpassed
for quality by the gas of any city In this
country. The quantity Of the gas supply
Is so far sufficient and the occasional
failure In the supply may be reasonably
attributed to some physical difficulties
resulting from our peculiar topography.
which have never been corrected by ex-
pcrience. skill or expenditure anywhere
on earth. The improvements suggested
at the gas works are necessary first to
increase the quantity of gas, and. second,
to reduce the cost of gas. II is doubtful
whether we will ever have much better.
gas. 1t Is said that the gas In Wash
inston city is the finest made In this
country, and the gas made here is de-
clared by disinterested experts TO be
equal to that In every respect
"lf'the gas works have earned SO much
money" said The reporter. why are they
in such dilnpidated condition. and do
you think that the present state OF the
gas works should encourage the people
to continue this sort of u vcnture?"
1T has been the policy OF the Council"
said the Mayor. ito exnenl all OF the
earnings of the gas works on other city
needs, rather than on the works. This
may or may not have been wise. but It
was deliberately done. The gas works
have earned money from the beginning.
and continuously every year, and they
have been fairly well and successfully
admnis,ercd--vcry we'll managed when
The difficulties resulting from political
interference are considered, Some years
ago small politicians were nndnly in
nucnced By fear Of the officers AID en-
p'oyes Of that department.. but that con-