Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-01-29

pha tor the tive months ended Decem-
Der 81, 1920, over 1917 was 81 cents per
thousand cubic feet.
In this particular industry there have
been two additional special and most in
teresting and important developments,
which must be considered as permanent
in their effect upon the future of the
business:
CD The greatly enlarged use of gas:
Twenty-three years ago the chief use
of gas was as an illuminant, consumed
through open flame burners. Today
8IN per cent. of the gas sold in the larger
cities of the United States is used for
cooking daily food, heating water and
other domestic fuel purposes. and in in.
dustrial establishments as a source of
power and for various manufacturing
processes requiring the direct application
of heat; l6H per cent. is used to heat to
incandescence mantle burners, and only
about per cent. is used through open
flame burners, the substitution for which
of incandescent mantles would give
greatly better light and cut in half the con-
sumption of gas.
CD The enormously increased de-
mand for the distllates of petroleum, for
the production of energy through in
ternal combustion engines, which has
compelled oil re6ners to develop the
process of cracking" gas oil under pres
sure, thereby making it possible to con.
vert into gasoline this product, so that
the balance left for use in gas making
becomes each year less than in the pre-
ceding year, and will unduestionably
shortly become wholly inadequate to the
demand. This means the gradual-per-
haps rapid-disappearance of oil as an
element to any material extent in the
production Of gas, and in the judgment
Of those who have carefully studied the
subject and the situaton-some Of
whom have kindly consented to appear
before you-makes it necessary that the
owners and operators of gas works
should readjust their present operations
and plan the extensions of their manu-
featuring plants so as to promptly reduce
and eventually eliminate the use of oil.
What changes do these new condi,
tons involve in the process Of manufac-
ture, in the character of the product, in
its selling price, and in the contractual
relations between the City and the
Lessee2
After the lease has expired, shall there
be established some cooperation be-
tween the municipal owner and private
operatora And, if so, will it not be pos
sible that the enterprise shall have the
benefit of the City's ability to finance the
capital requirements of self-supporting
utility by longer term bonds at lower
annual interest and sinking fund rates
than it is possible for a private corpora
ton to negotiate?
These are grave problems. The inter
est of the City, the welfare of the public,
the satisfaction of the consumers, tho
convenience of life, demand that solu-
ton shall be found, and no doubt it can
be found, which will insure continued
and adequate service, suitable and COM
pensatory return to the City and to the
operator. the continued development and
upkeep of the Gas Works, and as low
a rate for gas as the changing conditions
OF manufacture and cost will permit.
The United Gas Improvement Com
pany feels great pride in the Philadel-
phia Gas Works of today and has very
special interest in their continued pros
perity, not only during the next seven
years, but afterwards, even should it not
be the privilege of the Company to take
an active part in the management of the
property after the expiration of the term
of the lease. We feel it our duty and
privilege to place at the disposal of our
home City, through you, any knowledge
gained from our thirty-eight years exper-
fence in the gas business which may be
of value in solving these present prob
lens and in constructing a plan for the
wise future development and operation
Of the property.
Respectfully submitted,
IT,. I I~:I.I r.. r.