The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-03-16
REJECTS PLAN TO
REDUCE GAS RATE
Council Committee OH Light
Believes 1t Unwise to Change
Price Just Now.
NET PROFIT IN 1911 $4,000
Cease Leads Fight for Lower
Rate, but Is Outvotcd by
Colleagues.

Declining to play politics by
nasty consideration. the Council Com
mittce on Light last night reported
to the Council for rejection the Cease
ordinance reducing the price of gas
from 90 to so cents. Several mem-
beers stated that when tho matter had
been more fully considered ana dis
cnssed. and when the time was ripe.
they might vote for such a move, but
In view of the fact THAT the budget
Just adopted appropriates all of the
estimated revenues for this year, they
did not feel that they would DO justi-
lied In making such an inroad in the
city's revenues without correspond
Ing decrease In expenditures.
Mr.. Cease, patron of the ordinance,
presented figures to show that up to
1902 the price of gas had been $15O,
and that following series OF re-
auctions, first to S1.25 and then to 81.
1t was cut on February 1, 1909. to
the present price, 90 cents. The year
following the last cut there was
falling off in receipts from the sale
of gas of about $1,000, but In tho sue
cecdinS year the increased consunp-
ton moro than offset the reduced
rate
Net Profit 100000.
superintendent Knowles stated that,
after allowing for all proper charges
against tho plant the net profits from
operation last year had been $4,000.
The gross return to the treasury was
in reality much moro. M in making
this estimate all such charges as in
teresS depreciation. taxes and other
costs that would be imposed on the
plant were 1t under private owner
ship have been included. NIr. Knowles
estimated that a cut of 10 cents would
mean q reduction In the revenue this
year OF $4,000
Chairman Crimes spoke In opposi-
ton to n reduction. pointing out the
needs tho city has for the money. the
desirability OF improving and extend
Ing the works. and the fact that many
users of gas In effect pay no taxes. so
that tho small profit on each bill Is
in effect their only contribution toward
the support of the government. He
suggested that the surplus profits be
set aside each year for erection OF a
into new sections of the city, and i'm
provements in the machinery and
methods of producing gas.
Too Nenr Primary.
Aldermen Powers, while stating that
he was not opposed to tho reduction.
took the ground that It had not been
properly considercd; that no demand
had been expressed generally for such
reduction: that the month before q
Council primary was an Inappropriate
time for consideration of papers OF
such far reaching Importance, and that
it would not be practicable for the
cut In price to take effect until the
first of the next fiscal year. February
/, 1912. By that time q new Council
will he in office. and the !Administra-
tive Board Will have taken charge OF
the gas works and he thought II un-
fair to hamper It In advance. Mr..
Powers, who opposed the creation of
an Administrative Board. predicted
that It would prove expensive OK
pertinent, with n multiplication of high
salaries and little results. With many
issues before the city such as street
improvements. n new Free Bridge. and
n dozen other mcritorious plans, all OF
which call for funds. he thought the
time inappropriate to talk OF cutting
into the city's revenues. saying 1t
would be useless to cut the price OF
gas merely to raise the general rate
of taxation.
Mr.. Hobson agreed that the COM
mittcc was not properly informed. and
proposed that the paper be tabled for
u closer study.
How the Vote Stood.
The motion to table was rejected,
. to 6, as follows:
Ayes-Messrs. Hobson and Radcliffe;
noes--Mcssrs Cease. Melton, Mitchell
Powers, Rogers. Grimes
The ordinance was then reported to
the Council with the recommendation
that 1T do not pass, by the following
vote:
Ayes-Messrs. Cease and Rogers
noes-Messrs. Hobson Melton. Mitchell.
Powers Ratcliffe md Grimes
Mr.. Cease gave notice thar he would
attempt to have some general express
sion Of opinion from the commercial
organization and other associations be-
fore final action is taken in the
Council