Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1915-02-22
COSTS CITY At CENTS TO
DELIVER GAS At BURNER
Sales and Heavy General Expenses
Raise Total Cost to
IS Cents.
PLANT rs HEAVILY ASSESSED
Gas Works Are Made to Bear $780,
600 In Interest and Redemption
and Tax Charges. Which Add % e
Cents Per 1000 to Cost.

tents Per l,O0O 10 cost.
Richmond's municipal gas plant, ac-
cording to tho annual report OF Su-
Pcrintcndent w. =. Knowles. during
the fiscal year ending December 81.
1914. manufactured gas which cost tho
city. delivered at tho burner. ~ 6l-lo0
cents thousand cubic feet. The sales
expenses including such items as metre
reading. complaints. sundries. and col
lections added cents n thousand. maxi
ing the true cost Of gas delivered to tho
household, about 81 1-2 cents a thou
sand cubic feet.
To this cost charge Ia added approx
imately % q cents as each thousands
proportionate burden OF the general cx-
penses--an item that aggregates $685.
5S6.o7. Under this hcnd Is included STl,-
l2So3 interest and redemption on ST.
29S.o37.o2. the estimate cost of rcploc-
ing the plant and mains, and s6l.25o
taxes at l IA per cent on $500.
900 valuation OF the entire plant and
the value OF the franchise.
GAS WORKS MUST PAY
FOR STREET LIGHTING
A still further cost of cents on the
thousand is added by an item OF SI2.-
600 charged against the Gas Works for
street lighting labor When to the
cost OF gas at the burner is added the
proportionate cost OF the general OK
pense items. the total cost of producing
gas Mt the municipal plant is raised to
IS cents thousand cubic feet. The
consumer Is charged 90 cents.
With this margin of profit the Gas
Works, during the year ending De-
cember 81. 1919, cleared over and above
"a oh inc Z
the sum of s1l.3Go.S2 This sum, de-
rived from that proportion Of the resi-
dents of the city that uses gas found
its way into the treasury and repre-
sents roughly the margin within which
experiments In the direction Of re-
ducinE the price of the product may be
made.
The report OF Mr.. Knowles which
has just been filed with the Mayor is
particularly interesting at this time in
view OF the pending offer of the South
ern Gas and Electric Corporation to
lease the municipal gas plant for a
term Of thirty years either on n direct
rental or apparent profit sharing basis.
COST KEPT DOWN
DESPITE HIGH OH.
IT is pointed out by Mr.. Knowles that
the city last year made gas costing. de-
lircred ut the burner. approximately
81 1-2 cents In spite of the fact that
the cost Of making water gas during
this Eeriod, as compared with the cost
of making water gas during the year
preceding. was approximately cents
more on the thousand. The increase
Is due to the high price OF oil that OBJ
tanned during this period.
There has been a marked decrease
in the price of Oil In view OF this
decrease II appears probable that when
the next annual report is filed IT will
show that the total cost OF producing
gas at the municipal plant during the
year 1915 will be nearer ~ cents
thousand than IS cents. which was the
cost last year
The municipal plant manufactured
during the year ending December 81,
1914. total OF G30.371 900 cubic feet
of gas. 1t sold 5G5.265.5ll cubic feet:
supplied l3SlS.500 cubic feet for street
lamps; donated $4,000 cubic feet TO
charitable institutions, and lost 50,635.-
sos cubic feet through leakage and
condensation. At the closing OF books
for The var there we're 297.Tl7 cubic
feet in the holders.
NEW MAINS AND LABOR
COST CITY S7D,S17.0D
The repot shows that there were eX-
pended last year In extensions and i'm
provements. including new mains. ma
terial and labor, the sum OF S79.S77.99.
This does not include approximately
$4,000 expended in renewing services,
making repairs and setting stoves and
meters. which. although making for the
general Improvement OF the distributing
system, were charged TO cost of distri-
button and included as charge upon the
per thousand cost of gas.
All the items that enter into the cost
or operating the Gas Works and there
fore those that contribute TO the final
cost or gas To the consumer, will be
subjected to close examination shortly
by tho Committee on Public Buildings,
Properties and Utilities which has un-
der consideration the two propositions
Of the Southern Gas and Electric Coz
poration for q lease OF the gas plant
on basis combining. to certain de-
gree. the elements OF municipal owner
ship and private operation.
Chairman Atkinson. Of the subcom-
mittee to which the matter has been re-
ferrcd has called a meeting Of his COM
m!ttee Tor tomorrow night. II Is hard
~ probable that the committee, Mt this
meeting. Will do more than outline a
method OF procedure, probably fixing n
date In the near future for public
hearing on the question on its merits.
The southern Gas ana Electric Cor
1"Eation, which controls the IIenrico
County Gas Company. now operating
under franchise in the northern por-
lions OF the city that were added under
the recent annexation, is urging the
submission Of the leasing offer to q vote
OF the people. To these is held out the
pT"UIISc ihat "llhih one year alter IN"
lease becomes effective an S0-ccnt rate
10 private consumers will he put into
effect.
The gas situation is rendered still
more interesting by an ordinance which
has been introduced by Alderman Pow
ers providing for reduction In the
price o! gas from 40 cents, the present
price. to so cents. The measure has, at
/ the request of Mr. Powers, been tabled
to allow him to secure certain data
which he desires TO lay before the COM
mittne
Mr. Powers is now engaged in secur-
Ing Information bearing upon cost OF
manufacture, relation OF costs and eN-
/ pcndtturcs. rates, and interest and de-
( probation charges from gas plants in
/ cities comparing with Richmond in
/ size. Information Is being sought also
/ nron the cost Of production under mu-
( nicipal and private management.