The Delta independent., 1918-05-10

DSPi oSace2A' AnecioSt ioSSeS IN tran
sit, Insurance ---------.--.--..-.--.-..--- 5000
Total 1884 20
Value Of Products as follows
Compress gas ex containers value at
&c $3.50 90
100000 X. IL X. 02 ..... 252OO
Gross Profit ...-.-...-...-...........-.s 1927 90
The net profit would be about one
half this, or say $4,000 per working
day. the remainder going into the sink
ing fund. Counting the working per-
iod as three hundred days a year, the
net return would be $4,000 a year or
dividend of 20 per cent But here
again we must use caution for this
dividend depends primarily on the
plant working at nearly its full rating
and while in my estimate | have made
allowance for the stoppages concur
rent with operation. have made no
allowance for market condition. Il
shall consider them next.
The market or any COMPETITIVE
product is dependent upon competi-
tion. demand. quality, and good will.
COMPETITION: A company at
Delta would have the advantage of an
almost exclusive territory because of
the high freight rates from both the
west and the east. This territory
would be bounded by the summit OF
the Continental divide to the east and
the common point of Salt Lake
'on the west. This is an unusual re
gion. shut in by mountains and hedg-
ed about BY high freight rates and in
1t after short time a local company
would become supreme as the trans
portation charges would act as sub
sidy.
But this brings us to the second
point, DEMAND. This is small
at present The population is sparse
and the manufacturing establish
ments are few. Sugar factories and
bottiing works are at present the chief
consumers. The total consumption
does not in any event exceed 1000 cub
ic feet per day. The remaining pro
duction must be sold in competition
with the eastern or western firms. or
We must look to some unusual condi
tion which will cause fast Increase in
consumption. l believe that this will
be found in the shaie oil industry. In.
quiry shows that the shalc oil com.
no refineries have as yet been built
"hen' however. these are constructed
an energetic campaign should, and
doubtless would secure the use OF a
very large volume of the gas in the
liquid form; a form in which IL IL
more easily handled than under high
pressure. The gas is used as a refrig.
Grant In separating the paraffipe wax
from the crude product known as wax
oil. | am not prepared TO estfmate
the volume that would be used. but 4,
VIII be very large. probably exceeding
your total output.
| The compressed gas can also he
sold under comparative conditions I'm
the Great Basin area, (Arizona. Ney-
aha. ana Utah) and in the states of
Idaho. wyoming twestern) and Mon.
tana. The consumption in this area
does not exceed 10000 cubic feet per
day. seriously dougt If competition
east of the Continental Divide couid
be met on account Of the freight rates
The quality OF gas will be excellent
and no fears need be felt on tha,
score Finally. we must estimate the
factor OF good will. The average bot
ting works proprietor is pretty certain
to order from the accustomed house
and in the beginning OF the work that
factor must be allowed for. A cam.
paign of advertisement must be laid
out and carried forward to educate
the purchaser"
We do not think that the contents
OF the water are Of high enough value
to pay much attention to IT.. The an.
innate Of the above report on gas
were made in every way to protect
the company. that is. the cost Of mat
erna. ETC.. was made very high and
the price that we were to get for gas
was made very low.
We are having more tests made Of
tfe gas to be sure Of It's purity. We
are also doing everything possible to
keep 1t from escaping The only place
that IL escapes now is at the river
We will take steps at once 10 place
packer In the well below the form
alton that allows this to escape.
The officers OF the company and the
secretary will be glad to show you any
reports we have. but the above covers
everything
We VIII not move the machine from
the well. so that anyone who would
like to satisfy themselves that we
have struck granite and that IL In of
no use drilling further, can do so
The company is In a good financial
condition. having in the bank ut this
time $6.S09.32 with all bills paid with
the exception OF perhaps $500. II may
cost us In the neighborhood OF 5000
70 completely shut Off escaping gas.