The Birmingham age-herald., 1914-06-14
R. w. EWING ISSUES
 STATEMENT ON THE
 GAS CONTROVERSY
(continucd from Page FIve)

B. T. U. as at present with coal gas The difference in heat units between the two extremes guaranteed by each contract being per cent minimum and per cent maximum. or an average difference of about 7l4 per cent decrease in heat units.
 'The experts and commissioners have agreed that under the conditions proposed the new gas would be acceptable and sat isfactory except that the public should be compensated for the difference in heat units.
 The gas company proposes to sell the new gas at 75 cents per 1000 feet in place of 95, as now and a probable series of reduction of increased vol per 1000 cubic feet when total quan- tity of gas used per month should | reach 5,OOO,000 cubic feet. The compar- 1son in price and margin left for dis 1 tribution cost in each case would seem to be in favor of the people per cent as follows: AHr
 Present selling price ..s e5 PreseHt cost to manufacture .... .3O Differences in distribution and
 margin ......,........ .65 Proposed contract selling price 75 Cost of gas ......... .16 Difference for distribution ~ 60 Comparison of heat units will be as follows: present contract, 575 B. T, U.; new contract 525 minimum guaran- teed B. T. U.
 This makes a difference of 50 B. T U., or per cent.
 Difference in Gas The average, which will be fur nished, however, will be about $40 B. T. u., making net difference of s5 B. T. u., or equivalent to about 7h per cent reduction average in heat units to offset which we have A re- auction of 20 per cent in price for a net of over 12 per cent saving in gas of equivalent B. T. U basis under the proposed amended contract.
 "It is estimated by MT. C. c. Brown. the expert employed by the city. and | Is seen from statements which have been published, that the saving in gas | 10 the citizens of Greater Birmingham during the life of the present contract allowing six months to get started will leave six years to run and will amount to about $1,449, 900 direct say l ing to the people which would reduce the cost of living in Birmingham dur ing the next six years just that much and would, therefore, enhance the net worth of our property and all other values that much.
 | 'If the Board of Trade committees 1 suggestion is adopted by both parties interested, commissioners and com pany, provided the company will nav into the treasury of the city 1 per cent per annum on gross proceeds for the sale of gas during the six years. the | additional revenue for the city would amount to over s60,000 and the city would gain in the establishment, by general consent under this contract o1 the important principle that the gas company pay into the city treasury 2 certain amount of its gross income from sale of gas, which important prin- ciple would be a valuable lever on flu. ture contracts not only with the pres. ent gas company but with others.
 There seems to be but three prfn. cipal questions involved in this inves. tigation:
 First: Is gas with a minimum B. T U. of 525 Cor probable average oi 535 or $40 B. T. U) suitable for mu. nicipal use? If not we should then dror the proposition If yes. we are led to
 "Second propositions: Is the proposed price for units of service an improve ment on the present contract? If not we should drop it. If yes, we are leat to
 Third propositions: Do the people want a decrease in the cost of gas? Ii no. drop 1t. If yes, then on what basis?
 Quotes Authority
 Bearing upon the question of suit. ability owing to reduction in B. T U below 575, which question has beer raised, I have before me one authority which may be quoted as follows: In The Gas World issued in Londor under date of May 2, 1914, pages 5s2-59O appears an interesting article entitled Gas Bill in Parliament which contain. the conclusion regarding municipal gas that same should be $40 British therma units gross cubic feet with penalty o as91h B. T. U. This compares with tho by-product gas offered by the Birming ham Railway, Light and Power compan, 10 be obtained from the Tennessee Coal Iron and Railroad company as follows:
 The maximum as per facts found on in the joint conference in the commission CTS office, is about equal to our avera gc that IS bSo to $40 B. T. U., which is abou 40 heat units above the minimum stand