The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-07-04
GAS WORKS SHOWS
APPARENT PROFIT
But Superintendent Wants Large
Sums for Repairs and
Betterments.
PUTS COST OF GAS AT s.66s4
Urges City to Plan for Future
Growth and Better Service
for Public.
PUTS COST OF GAS AT s.ees4

After allowing for interest on the
cost Of the plant and othor nSvu
charges. the City Gus Works made a
substantial pront on Its operations last
year. according to the annual report
yesterday. The report does not make
any allowance for depreciation though
experience has shown that II has bee n
necessary to expand considerable sums
every few years ir rehabilitation In
fact Mr.. Knowles asks in this report
Tor the immediate outlay of more than
100000 In repairs and replacoments,
not counting the cost OF extension OF
mains and the erection of new gag.
holder. the report giving the impress
sion that the plant has been opera; ed
Tor se:eral years with o view OF show
Ing the largest possible apparent pro-
TT by not making the OUTLAWS which
the superintendent regards as abso-
iutely, necessary.
Total receipts from the sale OF gas
and by-products were s4S4,77b26
Total operating expenses were s227.-
e7e.fo. leaving AN excess Of receipts
over expenditures OF ;c5d.Ieo.sS
Cost al Works.
The cost or manufacturing gas at
tho works. including leakage and
S.S
per 1000 cubic feet. Tho cost Of
iistr!but!on. including labor and ex-
penses. was s25,i7s.l7. making the
cost OF gas at the burner .s3627
Sales expenses, including meter read
ing, complaints. collections and office
eNpens,s amounted to s2l566sS add
ing - the cost of each 1000 cubic
tect produced s.oi06. General expenses
amcuntcd ~ sl7s,3TS37. ami included
~ n int dop
$500: Interest and redemption based
on the liked cost of the plant of ST.
100. o6l.46. amounted TO S63,52S !:
ta%cs based on the assessed valuation
or $4,000, 900, f6l. $50: the item of gen
crai expenses adding TO the cost OF
Hcs S.ll3 per 1000 cubic feet Street
lighting adds 3l2,646.3s. making the
total cost Of Production. according to
Mr.. Knowlss's report, s355.55o
ing 10 the superintendent calcula:
items. OF sl.9,22i.3l. The total cost OF
production per 1000 cubic feet was
S66Si, and the selling price s.aU.
No Item of Depreciation.
While allowing for interest on tho
plant and for other charges that would
apply against the works were il op-
Grated by private corporation, the
report does not make any allowance
for depreciation. and Il is significant
that the list OF repairs and replace
mcnts which Superintendent Knowles
now urgently requests, will aggregate
In cost approximately the entire
amount OF apparent profit shown from
last years operation. AS many on
these repairs We're urgently recon-
mended last year. and were not made
there appears TO be some ground for
the contention that an effort is being
made to show an apparent profit In
operation by allowing tho plant itself
10 deteriorate. thus playing into the
hands OF those members OF the Council
who for political purposes have been
urging reductions in the selling price
or gas without making any invcstiga-
ton of the cost of its production or of
the condition and needs OF the Gas
Works.
There was expended during the year
S5S,135.06 for new mains. which out
lay some claim should be taken as
offsetting the general depreciation OF
the plant, but as a matter of fact the
outlay for mains has been added to
the fixed total cost of the plant. bring
ing II to Sl,2l3.796.52, with no pro-
vision whatever TO take care of the in
evitable depreciation In a plant Of this
character
Needs Repairs.
superintendent Knowles recommends
mat the following repairs and replace
ments be made at once: new relief
holder for water gas plant. replacing
that built in 1893 anG worked with
out intermission since TO cost $4,000;
two eight-foot sets of water gas ap-
paratus. replacing sets which have
been in use since 1893. and need re-
modelling. to cost $4,000; two No. 10
Root eXhausters, to take place OF Nc
Kensie exhausters in use for the past
thirty years. now too small to handle
ha
tional Chollar purifiers. doubling pres
ent purifying capacity. TO cost sl5,50O;
two & tar extractors. to cost
$4,000; new boilerroom with modern
equipment. replacing that in contin-
uous use since 1898, to cost $4,000;
new storage oil tank of not less than
100000 gallon capacity, to cost $4,000.
In addition the superintendent rec
ommends that the city adopt some COM
prohensive plan for the future devel-
opment Of the Gas Works, including
the purchase of land for the extension
of tho works when necessary, and the
immediate extension of the coal gas
plant, as the price OF crude oil Is be-
coming prohibitive. The superintend-
ent also recommends the immediate
erection Of a 100000 cubit foot gas
holder at Fifteenth and Dock Streets.
and that valves be placed on all feeder
mains across the city. taking Twelfth
Street for the dividing line; the uae
CT automatic pressure governors. and
that all dead ends In the distribution
system be connected up, in order to
give all parts of the city uniform pres
sure. The superintendent also reports
an extended list of new mains now
urgently needed. the report indicating
that in spite OF the apparent profit at
which gas is sold. that there are CON
siderable sections within the old city
limits in which 1t Is not available for
uso.