Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-11-25
FIX BUDGET FIRST,
Then NEW GAS PLAN
Weglein Says Cost-Plus Pro-
posal Will Not Be Taken Up
in Council Until Then
MAY BE TOO EXTRAVAGANT

The United Gas Improvement Com.
pany's proposal Of cost plus price
for gas in this city will be discussed
BY Mayor Moore and members Of Coun.
Gil as soon ms the 1922 municipal
budget is completed. Richard Weglein,
president of Council, stated today.
The "cost plus" suggestion was
made by Paul Thompson. vice prcsid-n,
of the y. G. l., Co., in letter 10 Mr..
Weglein. who heads CounCil's Special
Gas Committee.
The Council president said he showed
the letter to Mayor Moore before the
City Executives recent departure for
the waterways convention al Savannah.
The Mayor, who has returned TO this
city, has an open mind on the gas
proposition, Mr.. WCglCin added.
'"The injection of the L. g. l. Conf
panys letter further cnmpliCateS the
situation. Mr.. Wcglcin continued.
Tho cost-plus system was very popu-
lar as an emergency war measure, but
sometimes it was expensive.
"As the United Gas Improvement
Company is able to run its LEASED plant
economically tho cost plus system may
be more extravagant in sound than in
thelesS, Council has serious inclina-
tion to settle this case.
81 will confer with the Mayor ro-
garding il as soon as the budget Is
cleared away. | will also confer with
the members Of Councils special ga,
committee. Nothing can he done just
now. but we want TO reach a solution
at the earliest possible moment
Roper Favors Sliding Scale
Councilman Roper said he believes
The price Of gas should be based on the
cost Of oil and gas. lie favors sliding
scale of prices something like that sug
gcsted in the report of the Municipal
Gas Commission. Mr.. Roper also said
the United Gas Improvement Company
should be given formal permission 10
continue supplying go Il. T. I. gas
until after the budget Is out Of the way.
The permission the company had 70
supply $50 Il. 7. Z. gas expired last
June, and since then tho company has
been liable, technically. 70 n daily fine
of $500. which now totals about SEQ
600. This situation arose because the
lease between the city and the company
calls for twenty two candlepowcr stand-
ard gas.
Council Stands by Rental Price
The company suggested an immediate
reduction of the rental it pays 70 Nh"
city, but up TO date Coupc! has not
suggested that any sucn Cuc will be
made and payment Of approximately
1000. 900 TO the city by the I. G. |.
IS being included in calculating the re-
ceipts Of the city for 1922. The hint
that the company will go to the Public
Service Commission for relief is ever
present. No such step has been taken
10, Ip
hands of City Council for year.
Incidentally, the company in its let
ter suggests a method that would pre-
vent years delay in settling the
problem. 1t advocates a proviso in
the revised lease that would enable the
company 10 change its rates by films
new rates that automatically woulc
become effective at the expiration of {
thirty day period.
That proviSo also would BE- embodied
In the lease that the company seeks
10 have drawn up after 1t has been
afforded temporary relief by n decrease
In its remittance TO the city and a low
ering of the standard of gas.
The company likewise recommend,
that the gas plant be- changed in part
20 produce coal gas. with coke aS a by
product. The company finds the pres.
ent lease too inheXible and suggests that
the new lease should have provisos tC
allow ready adjustments in both The
price and quality of gas.
The new lease, if il accords with
the views of the company. also would
be terminnblC within a short space Ot
time by filing notice of expiration by
either the company or the city. The
company feels that the price of GA,
under the modified lease should include
the various elements entering into it'
manufacture, the fixed financial charges
of the company and finally the pay
ment exacted by the city.
The company would provide further
that after a six months period had
showed conclusively that the price Of
manufacturing gas had either fallen OF
increased. the company should be able
TO change the price to the consumer by
the expedient of filing a new tariff tc
be effective within the thirty day
period.
All money received from the sale OF
q gas above the actual cost Of operation
and the fixed charges. tho company
would retain for improving and modern.
izing the plant,