Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-01-02
CITY NEED OF REVENUE
ENDS CHEAP GAS HOPE
Administration Will Need All of
$j,OO0,00O a Year When
Share Increases
TO GET 25 CENTS A 1000
Additional Return Under Lease with
U. G.. !. Will Be Taken
by Salaries

Dy salaries
Any reduction in the price of gas o- T.,
the indirect tax placed upon gas coner,no,.
is more remote at the opening Of 1917 tba,
Mt any time during the nineteen years tbel
the United Gas Improvement Companv he.
operated the citv-owned gas works und,-
a lease that will not expire until Decor,
Der 81, 1927 That is admitted by mrnici
pal hnancicrs having in charge the pIars
for revenues and revenue sources under tbs
Smith administration.
The City's share Of revenue from the safs
Of gas has steadily increased. II has grown
to such proportions that the return for ans.
one year would go far toward building ap
art palace. a stadium. n convention hail
modern pier or a section OF transit line
provide for the entire payroll of the cly
government for more than two out Of any
given twelve months The value OF such an
asset is fully realized by members Of the
CouuCilmaniC Finance Committee, who have
spent months in hunt for additional rev.
cnucs to provide for governmental ex.
penses
During the first ten years of the life OF
the lease under which the United Gas I'M
provcment Company supplies the city with
free gas Illumination, the 81 1000 cubic
feet charged the private consumer was
divided so that the company retained
cighty-nve cents of the total and each three
months returned to the city the remaining
fifteen cents on each minimum charge The
returns to the city thus early, were so i'm.
purtaut as to be looked upon as n revenue
source that it would be necessary to con.
tinue If permanent loans for current cN-
peuses were not to become an annual event
In 1915 when the Citys charge in re.
venues was increased under the lease to
twenty cents on each 1000 cubic feet Of
eas sold, an agitation for lower gas rate
was started it being argued that a mora
equitable rate to consumers might he had
If the leasing company and the city could
agree upon q reduction of both their profits
This like previous agtations, resulted IN
failure.
Finally. former Mayor Blankenburg pro.
posed an cghty-ccnt gas rate and had
submitted to Councils bills providing re-
venues sufficient to offset any loss from
gas revenues with the idea that more
equitable system of taxation could he
evolved to replace the one imposing a pen
atty of heavy city tax upon all users OF
gas His idea was to abandon the citys
share of gas profits and substitute Other
plans that he named in new Legislation
An antagOniStiC Councils passed the eighty
cent gas bill but failed to pass the other
measures to provide substitute revenues
Facing a loss of several millions of dollars
annually in revenues. there was nothing
to do but abandon the plan to give gas
consumers light at lower rates.
The nnanciers in charge of the pre- aHi
administration are counting upon the ADD.
tional revenue that will be received 0fun
gas when, one year from now, the ug
price received by the United Gas ImpraF.
ment Company for gas supplied to con
sumers will be reduced to sevcnty-tive ts
and the City'S share COrrespOndngly IN
creased to twenty-five cents on each 100
cubic feet sold. This revenue will be great
needed in view of the present plan to reyis
upward the salaries of workers in many G.
the municipal departments
BODINE FOR REDUCTION
Less than six months ago President San
uel Bodlne, Of the United Gas Improyemeu.
Company, was quoted as anxious that the
city should authorize eighty-ccnt gas so
that the leasing company might BE- IN
position more easily to compete with the
Philadelphia Electric Company, the cost OF
whose light had been reduced after a long
rate war before the Public Service Commits
sion. The suggestion was branded as a
"feeler" by city financiers. who at that time
refused to be led into any controversy that
might bring forcibly to light the injustice
of the present method by which the city
lcvies an indirect tax on a portion ot lhe
city's population least able TO bear such
burden. Vast quantities of gas are con-
sumed in the more than 100000 small
homes of the city, and large portion OF
the revenues of the United Gas Improve
ment Company is derived from such sales
In 1915 the city in round figures derived
S2OOO.OOO from the sale of gas, The sales
for 1916. Judging from the returns for the
first nine months and the estimated sales
during the last three, will be at least So
1000. The figures for 1917, based upon
natural growth of business, Will result III
an increase of several hundred thousand
dollars and the returns for the first twelve
months after the city's share of income ls
Increased to twenty-five cents on each IVl9
feet sold, will, it Is estimated, run In nd
vance Of $3.0OO,O0O
Three million dollars in revenues looms
large in the eyes of Councilmen ana
many salary increases during 1917 ana 10
the eyes Of the Mayor, anxious to keep
large working force employed on projects
for municipal improvements planned ians
before his taking office. The attitude OF tAs
administration toward any reduction In ths
city's income from the indirect tax on ihs
sale of gas is best illustrated by state
ment made today by a financier who repre-
sents the inneTmost circle of admnistra. ION
advisers.
81 don't mind saying that the city wl
never give up it's revenue from gas 2
President Bodine wants to lower the prie
of gas and have the II. @, /. foot the biA
that would be fine, but the city is not going
to lose two or three millions year Of whlos
il is assured under a lease entered lnto
many years ago. We need all the Teyenus
we can find and may need more by ,hf
time the citys share of gas income is IN.
creased by an added five cents on each l.Vg
feet pf sold