Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1915-03-06
CITY COULD SELL GAS At
80 CENTS AND MAKE MONEY
shelton Prepares Statement. Showing
There Is Substantial Profit at
Lower Rate.
WOULD HAVE CLEARED s,as. 900
Surplus OF This Size Would Have
Been Returned to City in Past
Three Years if SO-Cent Rate Had
Been in Force.

Inc municipal gas plant can sell gas
to consumers at so cents a thousand
cubic feet and at the same time 70
TURN substantial net profit to the city.
Inns Is the unavoidable deduction
; from statement prepared Yesterday by
! Chief Inspector shelton. of tho Gas Do
partinent, showing total rcccjnts and
disbursements for Il period embracing
'he three years just past, In which the
receipts are based on an imaginary rate
OF y" cents thousand. According TO
inns statement the Gas Works. selling
It's product at the SO-cent rate. wouII
have turned In to the city TREASURY a
net surplus of sl3SS747l
In arriving ut this statement OF net
prohts. Mr.. shelton took the CITY Audi
tors own annual statements Of tho
operation Of the Gas Works. Tho anal
tors statement makes heavy book leyies
upon IN" works in tho form of interest
ana redemption charges and taxes The
propriety of charging all Of these item,
10 the Gas Works has been often u,,es
TONED by Superintendent Knowles and
other city authorities
PROFIT rs NET
AFTER ALL DEDUCTIONS
IL ~ significant, however, that allow
ing FOR all interest and REDEMPTION and
TAX charges. the city would have clea red
>i"s,S'4'il on its gas plant In the past
three years had gas been supplied To tho
consumers at so cents instead OF 90
cents-the present price Mr. Shelton.s
statement Is properly regarded as prov
ing authoritatively that tho city can
probably sell gas at so cents thou-
sahd cubic feet. and 1t may have an i'm
portant bearing upon the pendinr orJi-
nanc" fixing the future rate at that
price.
While the net profit OF s13s.s7471
represents the most conservative state
ment OF the surplus that would have ac-
crued TO the city in the past three years
under an So-cent rate, the real profit to
the city from the operation OF the plant
would have been much greater. since
heaSv disbursement items were charged
against the receipts. which indirectly,
ut least contain an element Of profit to
the city.
anon" the expenses charged TO the
plant in the three-ycar period named
are S2S.3'i.S2 for lamp lighting: S. 400
for legal expenses and part OF salaries
OF clerks in the City Treasurcr's office
and $4,000 for the rent Of Offices i'm the
| cry HAN. The sum of s201.4l5 90 was
! charged against the plant I'm this pe-
rlod Tor interest and redemption. and
! $lS2.7Jo in taxes on an estimated s3.-
100000 valuation of the plant and fran
chise.
AUDITORS CHARGES HAVE
ELEMENT Of PROFIT
As municipal utility the gas plant
Is not assessed by the State for taxa
! ton. The levy OF 81 cents on the 500
against the $3.50G.000 estimated value
OF she plant represents. therefore. is
u clear profit TO the city since IL the
plant were privately owned the city
would collect from IL in taxes only its
own rate OF $40 on the 500, instead
OF the rate Of sl.75 on the 500, AT
which the Gas Work is assessed by the
Auditor in his statement OF receipts
and disbursements.
similar element Of profit inheres
IN the interest and redemption charge
WhIch Tor the three years covered by
Mr.. Shelton's .statment. amounted TO
;2"i. 20. This charge is levied on
IN" basis of an estimated replacement
cost, fixed by ordinance which in the
Auditors last statement was placed
at sI,293.237.02
y second statement prepared bv Mr.
shelton shows that on an S0-cent basis
the Gas Works would in the last three
years have cleared S3l4,3S626 after al
lowing for disbursements Cor all mr.
poses including lamp lightning and i'm
provemen's 10 plant, but not including
certain or the Auditors charges in
Guided III the frs! statement On IN.
same basis and for the same nerjod
the profits would have been $500. 5IS 90
II the disbursements were taken as in
Guiding only the items OF expense used
by the superintendent in arriving at
the protits OF the works.