Evening journal., 1918-09-19
Begin Hearings on Gas
Company Rate Raise

Mr.. Schutt also submitted bills from
the George w. Bush Company. showing
that the company had purchased soft
coal from that concern at a figure much
higher than the rate charged by the
mining company. This supply, he add
ed. had been purchased for storage pnr-
poses
The freight bills for the past several
months, IS well as those for the CORES
ponding period last year were produced
and they showed the following in
creases: IRON 81 So per ton on hard
coal to S2S per ton, and from si.Io per
ton Of soft coal to $500 on soft coal.
Mr.. Schutt produced the contract for
gas OIL. which had expired and he eX-
planned that it was impossible to secure
new con;rect and only one company
is in a position tosupply them with Oil
at this time The price paid under the
old contract for the 3,jO0,OOO gallons
received was SO cents per gallon while
the last oil bought sold for S.6S cents
per gallon. or an increase OF over D
cents per gallon. Added to this figure
he said was s65 for unloading charges
and this increase in the price OF oil
based on one years gas consumption
was an increase Of 40 per cent. or $751;
600. The total increase In coal and oil,
he added. was about "a per cent. per
1000 cubic feet These were the prls-
clpal items. but TO them should be add
ed the increase in the cost OF labor. lie
showed sn increase Of SO per cent. in
crease divided as follows: Plant op-
Grating expenses, from 30 cents per
hour to 671a cents per hour; plant
hrcmen. from % cents TO 62h cents an
hour: street laborers, from y to 40
cents per hOnr.
Mr.. Schutt produced vouchers sign
ed by the employees and these and other
were admitted in evidence.
u was likewise stated that since the
statment was made further wage in
creases had been granted some OF the
employees.
The increase in the cost OF manufac-
ture Of gas was next taken up and II
was shoNn that during the winter OF
1861 there were 2,i6S0O0 cubic feet
Of gas made. while last winter the total
was $4,000 cubic feet, caused by the
great demand during the cold weather
and the shortage Of coal. As a result.
ID was found necessary TO improve the
capacity Of the plant. Mr.. Schutt said
that it was realized last year shat the
war was going TO last for a while at
least and the company was fOresighted
enough 10 order equipment to take care
Df the growing needs Of the city which
vas but part Of its plan here hinged
on the word Service" Contracts
amounting To si65.OOO for new equip
nent were entered into and a portion
)f this has already heen placed. He
added that unless the company could
show some earning capacity, II would
De unable 10 secure money to carry on
he work.
Mr.. Schutt said that the deficit for
he past twelve months on bonds, inter-
st and the preferred stock had been
'sli3 adding that unless the increased
'ates were allowed the company would
le short sS2,26l in its operating eX-
)enses. interest on bouls and dividends
IN the preferred stock
The proposed % cents increase per
1000 cubic fee. II was claimed, would
not allow anything 10 be paid on the
,ommon stock, and there would be no
surplus. Il was also pointed out that
The housing operations at Union Park
Gardens and the Wawaset tract would
mean at least 1000 gas consumers, and
,t the present time a new purvey0r,
new compressor and a conveying ap-
laratus was needed, all of which will
'ost $4,000. Mr.. Schuit said that up TO
he time OF the war the tendency had
,een TO lower the price Of gas, and he
the price per 1000 cubic feet |
n 1864 at $500 TO that of last summer, |
When it was but % cents per 1000 cubic |
eet.
Mr.. Schutt closed and Mr. Garretson !
sked what the companys statement
hOwed the valuation OF the plant TO be. |
'ir. Schutt replied that it was $751;
s6 at a depreciation OF about per /
ent. which Mr. Garretson stated was |
'ery ,ow. The total bonds outstanding, !
ogether with the preferred stock, Mr..
,chutt said. amounted 10 about $780, |
100. or what the plant was appraised at /
The question was then asked by Mr. I
what portion of the gas made /
lere goes outside the city limits and nc |
eplied about per cent.
James O'kane. representing the Cen
raj Labor Union. asked Mr.. Schultz
What salary was paid the president Of /
he company, and why il was not men /
ioned in the statement fled with the
Mr.. Schutt stated that |
he president had not been allowed any
ncrease. but he was willing TO state |
ne amount. Mr.. O'Kane said he thought I
{ should be stated Mr.. Garretson .
aid that Mr.. O'Kane was out OF order .
nd James Dale, another member of the |
.entral Labor Union, started to make a /
tatement which caused Mr.. Isaac 20 |
ell him he was out OF order. Mr.. Dale /
at down, saying, 'I'll take your word |
or it," I
Il was then that Mr.. Robertson arose
o speak on the subpect He finally Sc
ured the desired permission
Mr.. Robertson asked the following
Iuestions:
''Mr. Schutt, how much coal did your
ompany use last year,"
Mr.. Schutt answered "ii,S32 tons Of
lard coal and offs tons OF soft coal"
Mr. Robertson then asked. "DO you
make gas from coal or oil?" and Mr..
,chuit replied, "from coal and oil both.
he soft coal being used or our boil
rs"
In reply to further questioning. Mr..
'chutt stated that 6,668.i6i 'ubic feet
4 gas was sold last year and 2,699Ol3
'allOns Of oil were used. He also stated
hat when oil was selling at the low
Igure under their contract It cost Y 30
ents to make 1000 cubic fet Of gas. He
aid that the tendency Of all utility
nnann Is lnnnrs ,Nas La 1.nat1nn lI1a A.nnI