The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-10-31
WOULD CUT PRICE
OF GAS To 75CEnIs
Subcommittee Favors Reduction
of IS Cents to Con-
SulnerS.
WORKS NOW MAKE PROFIT
Believed That Use Would Greatly
Increase at Lower
Rate.
WORKS NOW MAKE PROFIT

heoucIOn IN the price OF gas TO con-
sumers throughout the city from 80
cents to IS cents was recommended last
night by a subcommittee of the Coun-
Gil Committee on Light. after an ex-
haustive study of comparative figures.
The action of the committee was unan-
imous, though one member Of the
committee said he would have pre-
ferred cut to 80 cents. as being less
Of a drain on the financies of the city.
Superintendent Knowles, while taking
no active part in the debate. thought
the smaller reduction would be ample
at this time and called attention to
large expenditures which will be need
ed for extension of the works and the
distribution system. and to probable
increases in the cost Of certain Of the
main supplies.
Have Variety Of k;stimates.
The committee admitted that a great
variety Of estimates have been made
as to the cost Of making and selling
gas. each expert having apparently ar
rived at a different conclusion as to
what the operation of the works act
ually does cost. The annual report OF
City Treasurer James q. Pace shows
that he received on account of the
works last year $42S.7S5.O7. and paid
out on its account for all expenses Of
operation $27l.774.27. leaving as the
gross profit of the year $ls5.020 So
This does not allow for interest on
the investment. depreciation. taxes, use
Of Offices at the City Hall. legal SER
vices, or other charges which might
be made against the works.
Placing the present revenue from the
sale Of gas at $4,000. the committee
hof har
be the same amount sold next year.
and that the cost of production would
remain the same, that the loss in gross
revenue to the city by reducing the
price to 80 cents. would be s45.556. and
by reducing the price to Is cents. the
loss in gross revenue would be $6S,334.
This loss, 1t was believed, would be
partially offset by the increased con-
sumption of gas, and the increased
number Of connections in the newer
territory of the city. Mr.. Knowles
pointed out that such increase meant
an increase in the cost Of coal and oil
as well as in labor for producing the
additional quantity consumed.
Mayor Recommended Reduction.
The committee went into figures
compiled by former Mayor Richardson.
who in his last annual message, re-
commended that the price be reduced
to so cents, and also into compilations
of Special Accountant George S. Cren-
shaw on the subject. Former Mayor
Richardson took the ground that gas
consumers pay their taxes like other
citizens, and II was therefore unjust
to impose upon them additional bur
dens for the support of the govern
ment The cost of production would
decrease in proportion to the volume OF
output. and the present works were
capable Of producing one-third more
gas than was being manufactured He
estimated the present cost Of gas, de-
livered at the burner, after providing
for ever - charge, to be 1859 cents per
thousand cubic feet. If the consump-
t,on could be increased to 750,0o0ooo
cuhic feet. the former Mayor figured
tina. the cost Of gas at the burner
would be reduced to S4.7S cents per l.
goo cubic feet.
Mr.. knowles Estimates-
In his last annual report super'h
,eudent Knowles included an eiaoar
ate statement Of the cost vi I
featuring gas for the year just cAose"'
making the cost OF manufacturing gas
q, thu works .301. After allowing for
leakage and condensation, and the COSY
n, distribution he placed the cost "a
.,s at the burner at .3S11- sales ex-
penses including meter reading corn
plaints, collections, office rent CIV
,dded .o41 while superintendence.I essi
..,v;css Insurance. interest ana re-
aemn,ion with taxes added -2SSl, ana
labor for street lighting added VS.,
making the total cost Of gas sold anu
delivered last year - and the so,al
of receipts fro1o ta -.
n CrEensly Needed.
r,.. m hd redemption charges
NJ. sxed h arbitrary cost Of the
plant of siAS.5ss.ss. while as mat
Tor Of fact the properties were as
ssxsed nv the state assessors IN lsio
a, e. 500. 900. Mr.. Knowles urged tne
conu,,.ee TO consider the possioh
ties of increased charges 10: eoAA ""
and labor. and not to 90 cut tue r~e
that I; would ever hereafter pave W
-. Increased lie also called atten-
,ic, 70 extensions and betterments OIL
The plan, now urgently needed, IN
ending pipe lines into growing sec
lions o. the city. and the rco'ac'"s Y.
. some ancient mains which nave mo-
than served their time. Some OF tnese
matters he has urged for seSeras !eas
without securing che necessary iu"os
! 70 do the work The Council had NOT
mad. these appropriations. and mao
used for other purposes the pronss oil
the works. but he warned the COM
: ,ni,,.~ tina, that could not go on IN
| definitely.
The Committee on Light VIII mee'
,o consider the report OF the s~"
! committee Tomorrow night