Evening journal., 1918-09-05

September. 1916, and dated January ist,
1917, for quantit yof 3s50,OO0 gallons
at a price Of SO cents per gallon. de-
livered our tanks, TO be delivered by
August ist, 1918. We are unable at the
present time. 20 make any agreement
for gas oil as we have been advised by
the Atlantic Refining Company that the
government will not permit further con-
tracts to be made. This condition ne
cessitates our buying oil in the open
market at the market price prevailing
at the time OF shipment. Since the ex-
plration Of our contract we have re-
ceived two large shipments Of oil from
the Atlantic Refining Company, billed at
SIS cents per gallon for the first barge,
and s,6s cents per gallon for the second
barge, plus unloading charges. The in
creased price Of oil based on the last
shipment as compared with our former
contract Of sc cents, makes an approx
innate increase Of five cents per gallon
for oil delivered at our plant or ii0 per
cent. over the price per gallon which
we were paying In October when your
board permitted us to increase the price
Of gas at that time This increased
price In oil amounts 10 Si37O00O0 based
on our consumption Of oil over twelve
months period.
The total increase for coal and oil,
based on our consumption for a period
Of twelve months viii alone amount TO
approximately si63.OO0OO or approxi-
mately p cents per thousand cubic feet
based on the amount OF gas manufac-
tured for the past twelve months end
ing as Of June 80. 1918. The total cost
, OF coal and oil comprises about SO per
cent. Of our manufacturing cost.
In addition 10 these increases, we
have since October ist made the follow
ing advances In our labor:
Onlce help-an average Of 30 per cent
Shop labor from 30 cents per hour 10
55is cents per hour.
Plant operators from 40 cents per
hour 10 67iA cents per hour.
Plant flremen from 20 cents per hour
10 62l5 cents per hour.
Other works labor from 30 cents per
hour to IS cents and 50 cents per hour
Street labor from 27ls cents TO As
cents per hour.
Our total payroll for the twelve
months ending June 30. 1913. amounted
10 si65,ii7i3. Increases I'm other mate
rials required in the operation Of ouT
business, while not as large as the in
creases in coal and oil, have been rising
gradually since our entrance In the wal
and in many cases, items have advanced
fully 100 per cent.
The following advances In material:
which we use have been made since las
I October when we appeared before YOU
board, and showed justification for ar
increase In our rates at that time.
Steel pipe, 20 per cent.
Cast iron pipe, 20 per cent
Bross good, 30 per cent.
Oxide, 30 per cent.
Nlalleable fittings. p per cent.
There are in addition to the above
| items too numerous to mention which
have gradually increased IN cost ant
while not as important. in the aggregat,
they amount 20 considerable in our op-
Grating expenses.
We are submitting for your consider
alton, attached hereto, and made a par
Of this communication. a report Of oul
operating expenses and balance shee
made by Lybrand. Ross Brothers and
Montgomery In addition for your con
sideration we are submitting a twelve
months itemized cost statement, a Mint
months statement since October 4. 1871
the month of June and an estimated sil
months cost statement as Of December
81. 1918, based upon our present costs
We viii also submit for your informa
ton a complete valuation in detail o.
our property and equipment made b!