The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1912-09-04
Has Been Experimental
With for Six Years and Has
Been Found an Unqualifi-
ed Success.
BOTH COMPANY AND
PEOPLE APPROVE 1T
1t Has Reduced the Price of
the Commodity and in
creased the Dividends Of
Stockholders.
palladium Specially

palladium Specially
BOSTON, Mass, Sept. 4.-The slid
ing scale gas franchise in Boston,
which went into effect in 1906, has
been found, after six years test, an
unqualified success.
It's immediate result was loss to
the stockholders in the company, ag-
gFegating about $15O,OOO, and cut of
five cents from the price of the COM
modify. Its ultimate result has been
| an increase in the dividends paid to
the stockholders, and further de-
crease of five cents in the price of
gas.
In addition to these material advant-
ages, both to the consumer and to the
stockholder, the adoption of the slid
ing scale has wrought infinitely bet
ter service. The gas company now
practically undertakes all the care of
the lighting or heating plant of the
individual, at nominal cost, and the
bother" that is apt to be so large a
feature in connection with securing
other necessities of household life, is
practically eliminated.
1t Reduced the Price.
Gas in Boston now sells at the rate
of eighty cents per thousand cubic
feet. When the sliding scale was
adopted, it sold at ninety cents In
the cities Immediately outside of Bos-
ton, the rate is still ninety cents, but
even in these cities, the result of the
cheaper gas in Boston has been re- 4
duction in price ranging from ten to
twenty cents.
The principle of the sliding scale
plan, which has worked good results,
is as follows: A standard price of
gas, and standard rate of dividends
was fixed at the beginning, both being
based upon estimates of the fairest
profit upon the investment of the
stockholders.
For every reduction in price, the
| company is then allowed to make a
! corresponding increase in the dividend
paid Issues of additional stock must
be valued by the gas commissioners,
and before these new shares are offer
ed for sale to the old stockholders,
they must be offered for sale at pub
lie auction, no bid being received for
less than the price fixed If the stock
or any part of it is not sold at the
auction, it is offered at the fixed price
to the stockholders, and these two
methods Of sale are alternated until
the stock is disposed of.
Dividends Increased.
The two reductions in the price of
the gas, since the sliding scale was
| established came on July 1, 1906, and
on July l, 1907. Each year, also,
there was an increase in the dividend
of one per cent. The dividend is now
nine per cent.
Comparative figures issued for the
first three years in which the sliding
scale was in operation are interesting
For the first year, ending June 80,
1907, the sales were about three and
three-quarters billions feet of gas. The
reduction of five cents in the cost,
from ninety to eighty-five cents per
thousand, amounted to a saving of
S19O,000 to the public, while the extra
one per cent dividend allowed brought
to the stockholders an increased pro-
fit of $150,000.
comparing the sales for the year
ending June 80, 1910, the figures are:
Gas sold, four billion, four hundred
million cubic feet. As compared with
the prices of June. 1905, just previous
to the establishment of the sliding
scale. this meant a saving to the pub
lie of some sSsO,00O, while at the same
time, the stockholders reaped sub
stantial profits.
Good For Both Parties.
Since 1910, there has been no con-
siderable change in the status. The
company has been unable, even with
the stimulus of increased dividends,
| to effect a further reduction in price.
The increase in sales, and, consequent
ly, In saving to the public, has been
proportlonate to the city's growth,
while Few surrounding cities are
supplied with gas up to a certain
amount, at the regular price.
Comparing the figures of prices and
of dividends, it is seen that the actual
profit to the consumer has been some
thing like twice, and almost three
times as great as to the stockholder.
Under tna circumstances, it is not sur
prising tha- nothing but praise is
heard of the sas'company, among Bos-
ton citizens. Since the gas fights
between people and company of sew
en- or eight years ago, the two con-
hicting interests have been in har-
mony- the public assisting the COM
pany by ordinary courtesy and cor
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