The Republican. [volume] (Oakland, Md.) 1877-current, 1920-01-08
income TAX Law
ALESSON TO GAS
CONSUMERS
Dr.. White Draws Lessons From
the Federal Laws of Interest
TO Gas Producers and Con-
sumerS
DOMESTIC CONSERVATION

AASSoDNA OIL NNPNS~e~AJs OOhSANNA-
able discussion has resulted among
natural gas men of the Pittsburgh dis
trict-the greatest gas center of the
world-regazding the many splendid
points of the notable address of DR.. I.
c. White, state geOlogist of West Vir-
ginia, at the recent convention of the
Natural Gas Association of West Vir-
ginia, held at Wheeling last month.
Particular attention has been drawn
to what he said regarding the conser-
walton Of natural gas for domestic pur-
poses.
How can our natural gas supply be
conserved for domestic purposes? The
enormous waste of natural gas that
has taken place in every state of the
Union would not have occurred, and
would not still be permitted to go on,
could the masses Of the people have
realized the great inherent value Of
this gas. When you tell them that its
actual value for light (Welsbach),
heat and power is practically double
that OF the richest gas manufactured
in the retort oven, and FIVE to seven
times the value of producer gas, it
does not seem to occur the consum-
er that this inherent superiority
should be reflected at all in the price
of natural gas. The producer of nat
ural gas has probably himself mostly
to blame for this present frame Of
mind of the consumer. The producer
and marketer Of natural gas has never
until quite recently had any proper
accounting system whereby he could
know what his gas was really costing
Zone of the splendid by-products Of
the Federal income tax is that it has
taught the careless business man, rs
well as careless corporations, that
they cannot continue in business in
the old happy-go lucky manner Of
decade ago, when very few business
men or organizations possessed any
really adequate accounting systems
and hence were often like practically
all coal and gas producing agencies al
that time, actually losing money
every month of the year and did not
know it. This stage in the evolution
of industry has happily passed, we
hope never to return, so that under
the spur Of necessity even the coal
and natural gas companies wAich
prior to the world war had nearly al
been selling their products below &C.
tual cost, based upon any proper &C
counting system, are now beginning
to realize that they must secure more
adequate prices from the consuming
public, or they cannot command the
funds necessary to continue efficient
service, or finally any service at all
The city OF Wheeling a long tins
ago when labor received a reward OF
800 to $1.25 a day for a day OF 10 to
II hours, and the coal baron of that
ancient period received so to rs cents
per ton for the best grade Of gas coal
could manufacture and deliver gas e
her citizens st rs cents per 1,00G cubic
feet and not go Immediately broke"
That she could not do 30 now with a
$500 wage Of to hours and S2.75
to $500 per ton for coal at the mines
admits of no discussion.
With the known cost Of manufac.
tured gas, and the failing supply of
natural gas, what should the domestic
consumer do who does not desire to
return to the use of coal or wood in
his household? That the natural gas
companies cannot much longer fur
nish an adequate supply for dom estic
consumption without greatly curtal
%Alts IAC lcl use vi LSillll al gas IL
evident to all who have exact knowl.
edge on the subject The main prob
lem appears to be how best to brine
about the reimbursement which viii
conserve an adequate supply OF nat
ural gas principally to the domestic
consumers for many years to come.
To those who have studied the cues
tion most profoundly there would an.
f0 he hui
large and immediate increase in the
price at which natural gas is COW
sold. 1t has never secured an ade-
Quate price. Double the heating value
OF the best manufactured gas, cleaner
and freer from impurities, it has al
ways been sold at only a fractioa Of
the actual cost Of the manufactured
article. This cheapness has led to
waste at every step of its production,
marketing and burning waste at the
well mouth, waste along the pipe
lines, waste at the burner, waste in
using a precious, pure and refined fuel
where coal would answer every de-
mand for power. Let US suppose that
the Public Service Commissions of
West Virginia, Pennsylvania, Ohio
and Kentucky would in the near fu-
ture authorize the companies supply
ing natural gas gradually to raise the
price Of this commodity to say so
cents and finally S100 per 1000 cubic
feet for this priceless fuel and see
what would almost certainly happen
The first result would be a gradual
return to coal for most industrial pur-
poses; the second would be the in
stallation Of more efficient burners
and more intelligent use of the same,
thereby securing all necessary heat
for domestic purposes with less than
one-fourth Of the quantity now burned
in which 80 per cent is pure waste.
This greater utilization would de-
crease instead of increase the con-
sumer's present monthly gas bills.
What would happen in the produc-
ing fields? All unavoidable waste
would be prevented by the self-interest
of the owners. No oil wells would be
permitted to vomit into the air thou
sands Of dollars worth of gas daily.
since the owners would be losing too
much money, and the strangest of all
laws, that Of self-interest would lead
to the separation of the oil from the
gas, and the marketing of the latter