The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-09-26
Robert Whittet, Of Administers
tive Board Believes Big Trust
Back of Company Proposing
Purchase Here
F.. NIGER IN WOODPILE
IF Baltimore Concern Can Make
Profit Out of City Gas Plant
After Paying Lease and Gut
ting Prices There's a Rea-
son

( The proposition made by the South
ern Gas and Electric company SEEK
ing to secure a control of the Rich
mond gas plant is but an instance OF
the efforts of the Standard Oil COM
pany TO secure control of the NUM-
cipal heating and lighting plants OF
a number of cities, is the belief OF
/ Robert Whittet. a member of the
administrative board
Mr.. Whittet told a reporter of The
Virginia1 that he is of the belief that
Standard OH Is behind the company
making this proposition, and those
which have been made 90 frequently
in the 9ast, and that If the Southern
Gas and Electric company is abba
to make a proposition granting gas
at the prices quoted in the newspapers
1t Is because ii is able 10 get Its oil
at prices much less than those al
lowed the city by the corporation
which virtually controls the entire
country N this respect.
Rates Quoted Excessive.
If Standard on is behind this COM
pany the prices quoted in the offer
made Yesterday afternoon are excess
sive, thinks Mr.. Whittet, for with
Standard Oil the hacker or principal
stock owner in the Southern Gas and
7 Electric company, the price of gas
should he reduced TO the consumer to
sixty cents the thousand feet at the
most.
"A fact which tends to confirm my
suspicious that the gigantic corpora
ton, which controls the oil market OF
the United States, is endeavoring to
gain control of the municipal gas
plants. and that 1t Is the real power
behind those making the offer TO take
over the Richmond plant is that the
price Of oil to the city has been stead
lily advanced The most recent raise
in price was made on the first Of
September"
The fact that the Southern Gas and
Electric company is able to make
proposition 10 the city. guaranteeing
, eighty-cent gas, and at the end of ten
years a rate of seventy-five cents on
the thousand feet. is taken to be am
pie evidence that IT believes IL posi-
BILE to make money under such an
arrangement II is willing TO expend
$4,000, 600 in rental for the present
plant owned by the city, and to make
improvements necessitating an extra
investment of 81 900, 600. and are still
confident that they will be able to
reduce the price to the consumer to
eighty cents. and to the manufacturer
or wholesale user of the commodity
at prices ranging from that figure
down to seventy-one cents. aecordina
TO the amount of gas consumed
The question is raised why the city.
with its plant established and run
ming and al expense only of main
ttainance and improvement, Is unable
to grant prices as low as those quoted
in the offer made by the Southern Gas
and Electric company, which figures
that II can make the reduction and
yet guarantee. its stockholders satis-
factory dividends.
Investigating Now.
Various members of the admin
istrative board stated last night that
an investigation by experts into the
condition at the gas plant and look
ing TO a reduction in the price Of gas
would be accepta bic to them and
, might serve to definitely settle the
cause for the continued excessive
r prices charged the citizens
I'm fact such an investigation has
a already been started by the board"
declared Mr.. Whittet during the In
jterview we have been making 4
quiet and careful survey Of the situA-
ton in the gas plant some time and
investigation rs in the hands Of an ex-
= pert. We hope to accomplish by II
, exactly what the suggested investigA-
ton by number of experts would.
= 1t is uncertain when this will be COM
pleted. but action will probably b
= taken by the board as soon as a report
Is made on it
1t seems to be the unanimous
opinion OF the administrative board
that the proposition made for the
J leasing of the city gas plant to Z
private corporation gill be discarded
at once and that no of11c;al action
will be taken on it. Neither tbs
r council nor the administrative board
a.;,~ lxrx la1e 11 - ~ 1.
: ter as yet. The proposition wal
brought before the subcommittee on
e streets of the council yesterday after
n noon, but was tabled to await thu
next meeting Of the council.
Both Mr.. Whittet and e. c. Folkeo
e another member of the board. ara q
the opinion that the entire matter \
I one of legislation and that II y sun
iect to action only by the council.
THE proposition Is entirely legisla'
( tive" stated Mr.. Folkes. land tho I'D.
ministrative board will have nothing
/. TO do with it at all. 1t will b I
! council mater entirely and tn
0 referendum. required by the chaitei
a OF the city Of Richmond In matter1
of this kind. must be ordered by tnaa
bodx" Mr.. Folkes Is also OF tht
o opinion that the present proposition
. is one that has been made frequent.
q ly in the past and that 1t would mo-
be given serious consideration.
No Reductions Made.
No reduction liz made the whole
sale consumer of gas by the city q
j the present time and ne pays the SAND
: rate as does the person who ueea q
E merely for light. This ARRANGEMENT 4
entirely unlike that guaranteed ~ ~
r Southern Gas and Electric company n
9 the proposition which II made Tho sx0s
: committee OF the council yeSter9A1
q afternoon In its offer to take oye1
i the gas plant It specifically dest4nn44
. that wholesale consumers IL w.!
] given rate Of eighty csnta b1x
\ 1rst 69.e fset, seventy utne