The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-12-23
GET CHEAPER GAS
FOR CHRISTMAS
Finance Committee May Vote on
Present to Citizens
Tonight.
MAY MAKE COMPROMISE CUT
Large Repairs and Alterations
Are Needed, Says Superin-
tendent Knowles.

Reduction IN the price OF gas Will
be fully considered by the Council
Committee on Finance to-nigh<. While
some members have expressed the view
that the cut proposed by the Commit
tee on Light from 30 cents TO IS cents
is perhaps too drastic, IN view OF the
large demands for improvements al
the works, yet IL IL generally believed
that the committee wiil vote Christ
mas present" 70 the people Of Rich
mond IN the shape OF reduction
either to So or so cents. One member
OF the subcommittee which originally
investigated the matter farored So
cents. but finally yielded 20 the views
OF mis- colleagues. and the committee
reported favoring 10 cents. or a cut
OF one-sixth. About two years ago the
price was cut one -tenth. from s. to 80
cents
Divergent Views.
There has been a great amount OF
discussion in and out OF the Council
recently on the subject OF a reduction.
Some oppose any cut on the ground
that II Is taking just that much from
the revenues OF the city at time
when money is urgently needed Tor
streets. extensions of gas mains and
other improvements. Those OF tho op-
posite side contend that municipal
ownership OF the Gas Works Is for the
purpose OF furnishing 70 citizens OF
Richmond gas as cheapiy as 1. can he
manufactured and delivered. ana that
any excess over 2 fair interest," OF the
investment is in the nature Of .pe
cisl tax on those OF the community
who use gas for the benefit OF N.
wht lc community. Those taking this
v''w sssert that II the general fax
rate OF $1.45 is not sufficient to meet
the needs OF the government properly
and economically administered. Il
should be increased, but that no special
TAX other than the cost OF the service
OF the community who are gas users
for the benefit possibly OF those who
are noS
Nr. Knowies's Figures.
Practically the only available figures
as TO the cost of making and selling
gas at the Richmond works are those
contained in Superintendent Knowles
annual report. which figures were
copied by former Mayor Richardson IN
mis- last annual message. with the
recommendation sor a reduction. In
his report covering operation Of the
l..
hsures out the cost OF gas at the burner
at S3s7l: sales expenses. including
meter reading. collections. etc, add
S04l: general expenses. Including
superintendence, legal services. inter-
est on valuation OF Gas Works at the
rate the city pays on It's bonds. with
an allowance for sinking fund OF Gas
Works bonds and taxes, add 1851
street lighting adds another sO2s7,
making the total cost of gas In 1911
s725s
That these Asure. are approximately
correct Is shown by a similar estimate
in the annual report OF Superintendent
Knowles for 1910, whef the total cost
o: gas is placed at s7ses. In the 1910
estimate the cost OF gas. incIud.ng
leakage and condensation. was placed
at 1852. TO which was added cost of
distribution, s045s, sales expenses Of
$.otll, and general expenses. superin-
tendence. interest and taxes Of s.277.
with street lighting costing sO2s6,
making the total cost Of gas IN 1919
1886. There IS TO such complete esti-
mate OF cost IN previous reports
Large Repairs Needed.
While il appears from Official reports.
therefore. that gas has been sold at a
considerable profit 20 the city during
az least the past two years. IL is also
true that considerable repairs and re-
placements will be needed this year.
Mr.. Knowles has already fled with the
Finance Committee a detailed list OF
the engagements and alterations de-
sired. the total cost Of which will be
$4,000 OF course. II so large
sum is expended in any one year in
rehabilitation. the cost of making ana
selling gas would be very much high
er in that year. unless the improve
ments and alterations are OF a char
acter which could probably be added
TO the general capital charge and not
to be charged against current main
tenance- There Is contention whether
a sufficient sum has been allowed in
the estimates referred to for deprecia-
ton Of plant and replacement from
time to time.
At the present rate the City Auditor
will no doubt estimate the revenue
from sale Of gas at least as large a
figure as last year, but should a cut
Of one-sixth be made, there would be
Droportionate falling of in income
To the city until the distribution sys-
tenn is so extended as TO make up the
deficit.
Nouid cut On Revenue.
According 10 the report OF City
Treasurer James r. Pace. the receipts
from the sale Of gas for the yea end
ing January 81. 1912. amounted to
sg0s.S2o.01. \ cut from 80 cents TO
IS cents. suppoS!ng the same amount
OF gas 20 be sold as last year. would
mean a decrease in general revenue OF
sss.Igs.s7. \ cut from % to 50 cents.
or Of one-ninth. supposinE the same
amount OF gas TO be sold as last year.
would mean a decrease in revenue 10
the city Of Sf5.f94s5. But in answer
to this showing 10 IL contended that
were either REDUCTION TO be put into
eject. there would result a greatly
increased use and sale Of gas. and
that a much larger number Of people
would cook by gas. use hot water
heaters. and gas stoves. as well a.
being more liberal in their HOUSEHOLDS
allowances OF illumination Just as
the various decreases in postal rates
have always resulted IN larger ulti-
mate revenues by reason OF increased
use Of the mails. 80 70 is contendcd
that. within reason. every reduction
wiIl tend to increase the amount solo
and so onset any dehcit tn revenue.
Notwithstanding the present request