The San Francisco call., 1908-03-15
Will ATTEMPT TO
RAISE GAS RATE
Effort TO Be Made Before Super
visors Tomorrow to Favor
Company
Scheme to Reeoup Fire Losses
and Pay Fat Interest Meets
With Opposition

'I shall oppose any increase in the
gas rate Before the company bought
the Equitable. the Independent, and the
Pacific gas Improvement company. it
was fully able to supply the city.
These concerns were not bought to fur
nish required service, and there is no
reason why consumers should be COM
PEELED to pay high rate to give the
company interest on those investments.
In addition more gas is being used at
present than ever before in the history
of the city Nine families are using
gas for cooking purposes where one
used it a few years ago.
In 1897 the company sold almost
as much gas as in 1905, the year before
the fire. and indications are that its
business will rapidly extend this year
can see no reason for Increasing the
present rate, more especially in view
of present financial conditions. The
company should not ask or expect an
Increased rate when its business is ex-
tending and the business of the aver
age consumer is languishing. l will
oppose any Increase and will vote
against the acceptance of the report of
the majority, Moreover. we did not give
the water company an increase and it
viii collect under the present schedule
without an added cost to the con-
sumer.'-Statement of Supervisor Muir
ply.
FLIMSY. PLEA FOR HIGH RATE
An effort will be made at tomorrow's
meeting OF the board of supervisors
to give the Pacific gas and electric
company an opportunity TO dig into the
pockets OF the people to recoup its fire
losses and TO pay a fat interest on it's
large capitalization. The majority re-
~
lights, signed by Supervisors Sachs and
Broderick, will favor a 95 cent rate
against the present rate of s5 cents.
A minority report signed by Superyi-
sor Johnston will carry an indefinite
recommendation that the rate be fixed
in a sum not to exceed 90 cents.
The process of reasoning by which
the 95 cent rate was proposed came
entirely from the gas company, the
same company that two years ago paid
a bonus to the supervisors of $4,000
for an So cent rate. The sudden desire
of the company for 95 cent rate is
supported with a flimsy plea that oil
has advanced in price and that the
corporation must extend its plant.
The proposal to increase the gas rate
is unique in the annals of American
municipalities. Members of the board
of supervisors who will stand out
that they knew of no instance in
which a rate had been. advanced. The
tendency had always been toward
lower rates with the growth of popu
lation- The population OF San Fran
cisco is growing with such rapidity
that even the company officials pre-
dicted a 121k per cent increase of busi-
ness during the next fiscal year Sew
eral members of the board believe that
this increase will reach 20 per cent.
SMALL INCREASE IN COST
The fight in many large eastern cities
has been toward a IS cent rate, and the
local company has the advantage of a
plentiful oil supply within easy reach.
Two years ago while every large city
in the country was struggling with the
gas question, figures were presented
showing that in the thickly populated
communities gas could be /. manufac-
tured and distributed at prices vary
ing from As to 81 cents. The increase
in the price of oil has not been sufff-
cient to alter conditions more than a
few cents
The cost of distribution, it has been
demonstrated, is quite as important a
factor as the cost of production. After
the pipes have been laid the increase
in population, and especially the in
crease in density of population, re-
dound materially to the advantage of
the company. admitting of the sale of
an augmented amount of gas with a
proportionately small increase in cost
of distribution. Modern machinery has
minimized ule leakage. which is always
taken into consideration in fixing
rate.
No definite alignment among the
members of the board of supervisors
has yet revealed the probable vote on
the gas rate 1t may be stated how
ever. that a vigorous fight will be
made to prevent an increase in the rate
The final word rests with the mayor
who has the right to veto on the gas
rate, power not vested with the city
executive on the water rate
Although no figure is named in the
minority report. 1T is understood that
Supervisor Johnston has in mind a rate
between s5 and 80 cents.
There was no discussion at yester-
days meeting on the electric light
rates, and as they are regulated by
competition they will be allowed to
stand.
COMMITTEE FAILS TO AGREE
The committee on artificial lights
held several conferences in the hone
of being able to bring in a unanimous
report, but Johnston could not agree
with his associates. At the outset he
announced himself in favor of a 90
cent rate, while Sachs and Broderick
proposed to recommend a dollar rate.
The committee divided on the question
of the increase In business the com
pany will enjoy during the coming
fiscal year. After several meetings the
majority proposed that a compromise
measure be reported. Sachs and Brod-