Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-07-16
HALL GAS ORDINANCE
POSTPONES THE INEVITABLE
City Must Face the Issue Of Whether II
Should Make a Profit Out Of

the Sale Of Gas
THE decision of Mayor Moore to give tho
public an opportunity to be heard before
he acts on the Hall ordinance increasing
the price of gas to S1.10 a thousand cubic
U. g. I. for a year Is strategically prudent.
The people have to pay for the gas. They
are the first party in interest, They should
be consulted so far as possible in any modi-
fcation of the price at the present time.
Those Of them who have given any atten-
ton to the subject know that the Hall ordi-
nance disregards the recommendations Of the
Gas Commission. They know that the
commission recommended a modification Of
the lease in such a way as would provide
for meeting the needs Of the city and for
an arrangement by which there could be
adjustments in the price to meet the varying
cost of manufacture.
1t should not take more than two months
to negotiate a new lease IN which provision
for all contingencies could be made and in
which the rights of tho consumers could be
protected. The Hall ordinance fixes the
price for year from the date that it be-
comes effective, regardless of any lease that
may be negotiated in the meantime. 1t gives
to the U. G. I. S4,0O0,O00 more than 1t
would get under the existing arrangement.
But the U. G.. I. does not need that amount
Of relief at the present time, II It were
allowed to postpone the payment Of the sums
due tho city on July until q now lease
could be arranged 1t would bs inconvenienced
IN no way. That It needs relief Of some
kind Is well known. Tho prices Of tho raw
materials that It uses, which rose during the
war, are still high. But they are declining
and It is hoped that before the year Is out
they will be down to somewhere near the
normal figure.
The Hall ordinance Is subject to serious
criticism on two points. The first is that
1t gives relief to the U. G. I. in the wrong
way. And the second is that It increases the
cost of gas to the consumer.
The city has made large sum out Of It's
gas plant, and this has been taken from the
pockets of the consumers. 1t amounts to
$32 900, 900 in the period from 1897 to
1920. 1t began by taking FIVE cents from
every dollar paid by the consumer, and it
is now taking twenty five cents. The larger
amount yields a revenue of 81 900 900, as
already indicated. This is per cent on
$50 900, 900 or 10 per cent on $40, 900.
1t means that the city is making profit out
Of a public utility, and an exorbitant profit
at that No such financial arrangement can
be defended.
There is no justification for public owner
are to be given to the people at cost. The
only argument for such public ownership
is that it eliminates the profits made by
private capital.
But in the gas business in this city the
people have had to pay TWO profts-one
to the operating company, and that has been
at the rate of s per cent on generous
capitalization, and the other is to the city
itself
The Hall ordinance continues tax IN
the consumers Of gas for the benefit of the
City Treasury; that is, it continues a
profit without any attempt to discover
whether the sum levied is equitable or not.
1t is a mere guess and a compromise of
principle
and Wednesday of next week will afford an
opportunity for those who know to set forth
the facts for the information Of Council and
for the guidance of the Mayor. They can
be stated so convincingy that all fair
minded persons will be forced irrcsistibly
to the conclusion that the only wa' out for
the city and for the gas company is through
the course outlined by the Gas Commission.
If committee of the Council, the Gas
Commission and the City Solicitor should
meet representatives of the gas company to
negotiate a new lease all the issues could
be considered on their merits, the price of
gas could be fixed at such a figure as would
enable the company to manufacture it at a
legitimate profit, and it could be decided
whether it was necessary for the company
to add to that price any sum to be paid into
the City Treasury for a sinking fund, but
not for current expenses. This is the only
scientific way to go about it. 1t is the
course which will have to be adopted ulti-
mately.