Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1916-01-13
TTHE following advertisement appeared
i Monday In Baltimore newspapers:
ANNOUNCEMENT
30 CENTS NET FOR GAS
FOR DOMESTIC HEATING AND OTHER
EXCESS SERVICE

To Consumers OF Gas
For tho past year the officials and engineers
OF Consolidated Gas, Electric Light and
Power Company have been working on plans
to perfect methods and means to give the
people Of Baltimore a most favorably low
price for gas for domestic heating and other
increased consumption.
On January the maximum net price for
gas reduced to 75c to all consumers.
While this Is the lowest price the company
can make for the present consumption, It Is
proposed to make far lower rate for addi-
tlonal consumption per consumer, that
the average rate to the consumer will auto
matIcally reduce itself the customers
consumption is increased. just as 1t does In
the companys existing electric rates,
with this low rate customers may now
with economy take fun advantage of the
great convenience OF the more general
of gas-consuming equipment of all kinds for
added comfort in the home.
Immediately after the February meter
readings the rate to each domestic consumer
will be 75c net for all consumption up to
that of the maximum months consumption
in the past year, and provided that II is not
less than 1000 cubic feet, 35c net for all gas
used in thereof. Schedules covering
details of new rates as applied to existing
and customers will be published
HERBERT A. WAGNER. President
Consolidated Gas. Electric Light and Power
Company of Baltimore.
Baltimore, January 10, 1916.
Mr.. ]. L. Adred, chairman of the Bati-
more company, is reported in the newspapers
of that city as having stated that "gas was
being manufactured at around 21 cents a
thousand" That is not surprising, for as
long ago as 1897 private company was SELL
ing gas to Philadelphia at 81 cents the thou
sand. out of which was realized enough profit
to pay dividends on n capitalization of more
than million and provide also for deprecia-
tion. Widnes, England, in the heart Of a coal
belt. sells gas at a net cost of 16 cents the
thousand, which includes everything except
returns on capital.
An exhaustive study by the Bureau of Gas
indicates that a total production cost of so
cents the thousand, including everything ex-
cept returns on capital, maintenance of street
lamps and taxes. is reasonable; and under the
skilful management which has obtained in
Philadelphia, 40 cents the thousand would
be nearer the true mark.
In Maryland the Public Service Commits
sion ordered, effective January /, reduction
from so cents to 70 cents the thousand feet.
and permitted the company to adopt the sin
gle heating standard in lieu of the lighting
standard, which Is the standard in Phlladel-
phia.
The action of the company in offering 30
cent rate for excess consumption is volun-
tary and is a clearer evidence of a proper
price for gas in big city than a volume OF
ordinary statistics.
The lease with the U. C. I. provides that
Councils shall not reduce the price of gas be-
low so cents before December 81, 1917, and
thereafter not below 10 cents. Automatically
on January l. 1918, the city will receive the
excess on all gas sold at more than 10 cents.
The first year of the lease the L. G. l. sold
3, 032, ,073,S10 cubic feet of gas, and in 1914 1t
sold 9,s07.711,3SO. The city's receipts in
creased from s26S,sO1.56 in 1898 to $685.
466.11 in 1914. While the consumption of gas
was little more than tripled. the city's re-
ceipts were multiplied by seven.
During this period the leasing company
has expended more than nineteen millions of
dollars in improvements of different sorts
and has given better service than clients
received previous to the lease
The minimum rate possible. up to January
l, 1928, if the city surrenders it's own receipts
In their entirety, is rs cents. according to the
contract. In any case. the company's re-
ceipts for the period OF the lease are abso-
lutely fixed. and action by Councils or
any other body can change this condition.
There are two points only of interest to the
therefore,
l. In view of the vastly increased receipts,
is it a fair and proper thing for Councils to
order now a reduction from 81 TO 80 cents
the thousand, and a further reduction to SIS
rents thousand on January /, 1918, when
the company's share is automatically reduced
TO rs cents?
2. In view of the showing made in Balti-
more and the general unfairness of the gas
tax Cfor it is a tax, and an unequal one).
ought not the city TO abandon the payments
10 itself entirely. reducing the price TO con-
sumers to so cents at once. and to rs cents
two years hence?
The answer is found in the obvious fact
hat 81 gas in these times is an anachronism
and an outrage.