The San Francisco call., 1908-05-16
GAS RATE TOO HIGH
NOW, SAY EXPERTS
Engineer Hunt Shows Cost in
Holder Is Less Than
Thirty Cents

The gas company's claims before
the board of supervisors that it was
entitled to "over dollar rate per
1000 cubic feet for gas were effectually
shattered in the reports submitted last
night by Engineer A. NJ. Hunt and
Book Expert Stuart to the joint finance
and gas committees of the board.
Hunt showed that the company had
included in operating expenses for
the year 1921. $50, bond interest; S36, ,S4S,
floating debt interest, and $90,350, sink
ing fund. He showed further that a
part of the estimated Operating ex-
penses" for the year was the equiva-
l1ent OF the purchase price and insta1la-
! tion of 1900 meters and 5000 house
reconnecions, or 10 per cent of the
total number In each case. certainly an
abnormal figure for ordinary replace
ments.
BIG LEAKAGE SHOWN
His report set forth that of the 3,551,-
100000 cubic feet of gas sent out from
the company's works last year, 1.022,-
100000 cubic feet was lost by. leakage,
due to the poor condition of the COM
pany's mains This 27.5 per cent loss
was compared with the loss before the
fire, when 1t averaged between 10 and
II per cent of the total gas sent out,
and with that Of eastern plants which
showed even lesser waste.
Allowing the increase due to the ad-
| vance in the price of oil to 81 per bar
rel, allowing a number of controverted
charges of the company against "oper-
atlng expenses, etc. allowing payment
for the 1000, 900. 600 feet of gas lost in
transmission and also allowing the com
pany per cent on $4,000. 900 ap-
praisal, Hunt showed that the cost of
gas would total just under 75 cents
per 1000 cubic feet.
COSTS COMPANY 20 CENTS
For all gas supplied last year up to
September the company itself paid 80
| cents, and when it began to manufac-
ture in that month the cost was a
little over "a cents. Allowing for the
increase to 81 in the cost of oil. the
manufacturing cost of gas to the com
pany during the last four months of
lSVt' according to Hunt, would have
equalled 2S.93s cents per 1000 cubic
1eet This was the cost 'in the holder;
that is, before distribution
The assessor. Hunt stated, had in
formed him the companys valuation
this year would be $1,000, 600 greater
than last Including this tax charge
increase, the increase due to the oil
I
distribution and administration and a
per cent income on approximately a.
$9,OO0,000 appraisal. Hunts final figure
per 1000 for gas was 74.573 cents
SUPERVISORS ASTOUNDED
The supervisors were astonished that
the company had included such charges
as interest on bonded Indebtedness and
the installation of 11.00Oe meters as cur
rent operating expenses, and held the
report threw out of court the COM
pany's showing as untrustworthy
The report practically assures that
there Will be no increase in the rate
crease to 75 cents.
The committee will not. however, be
ready TO make it's final report at next
Mondays board meeting.
Expert Stuart read his Incomplete
report TO the committee, but received
permission not to file 1t until further
elaborated. AS far as it went it con-
tanned no important variations from
Hunts results. Stuart explaining such
slight discrepancies as there were nv
the fact that he had not worked out
details to the minute extent of the en-
gineer's showing.
Hunts appraisal of the gas compa
ny's properties used for the city totaIed
$S,775.0S6, as follows: plant, s2832.-
o45; pipes $5,027,76o; meters, sS97,750:
and lamps, sS7,531.
BOARD HEARS LANGDON
District Attorney Langdon was heard
yesterday morning by the finance COM
mittee in support of his plea for s120.-
600 In the next budget to defray ex-
traordinary expenses incurred in the
graft cases. Langdon said these ex-
penses should be borne by the munich
pality and not by private citizen.
He had examined into the law bear
ing on the subject and was satisfied
that such expenditure would be
legal, he said. If the fund were set
aside, Langdon said. he would be salts
ned to have 1t drawn against only on
demands signed by superior Judge.
We have extraordinary expenses TO
meet said he. but it would be inn
polite for us to disclose them at the
very moment they are incurred There
would be no objection to making QUAR-
terly reports as to how the money had
been used, for there would no longer
remain cause for secrecy at that time"
EXPERT SCORES HEWITT
The affairs of the department of
electricity were next taken up by tho
committee Expert William Dodge pre-
sented a report which did not rebound
to the credit of superintendent Hewitt.
OOlRe lDunu lndt the aQmin1Stra tiOQ
is Incompetent" that the organization
is poorly arranged and that while
more employees than are necessary are
kept on the payroll, the work has been
allowed to fall in arrears"
Captain Payson of the Spring Valley
company asked that $4,000 be set
aside for hydrant service; $4,000 for
water for municipal buildings; $4,000
for street. sprinkling; $4,000 for
schools and $4,000 for the parks:
total of $296,0O0. The water committee
of the board recommended that only
$3.50. 600 be allowed. No action was
taken on either recommendation
CUT BRITToN's ESTIMATE
President Britton of the gas com
pany said, that s350.O00 would be needed
for street lighting dnring the coming
fiscal year. The lighting committee of
the board thought that s33O,o0o would
be sufficient
The committee also heard the claims
of the health board and the park com
mission. and in the evening listened to
the petitions of citizens for district i'm
provement. but 1t took all matters un-
der adyisement