The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1921-08-24
The Matter of
Gas Rates
Mayor Jennings States Rea-
sons For Position That Gas
Can and Should Be Sold
on Franchise Rate


inst that suggestion is made by
Mr. Geo c. Warren that City Coun-
Gil give the reason for their refus-
ing to allow the Gas Company a
rate Of $1.65 in order that consurc-
ers may be informed on that side
Of the proposition.
The rate that the Gas Company
is asking for now is $1.75, but il
paid on or before the 10th of the
month, it would be reduced to
$165.
l have no objection to giving my
reason for voting that the Gas
Company so back to their original
franchise rate of $l.30. which
would mean a five per cent reduc-
ton if paid before the 10th of the
month.
The statement Of operations sub
mitted to Council by the Gas Com
pany for the first six months of
this year. ending juno 30th, shows
income $33S76.G6 and expenses
S27,5 sc, leaving a net difference
of $6,333 This was based upon
the $500 rate, but included in the
operating expenses is S132 a month
paid to bookkeepcr at their home
office in Baltimore, and $50 per
month to their president who does
not reside here, and $500 a year
to their local superintendent. [ see
no necessity Of paying a book kkccp-
er in Baltimore Sl52 q month TO
keep in the books up there the
figures and facts which it is abso-
lutely necessary to compile here in
their original form. and am of the
opinion that the party who made
the original entries here could also
keep the permanent books here.
and l believe this is an unnecessary
charge Of $1,S24 a year on the
plant.
/ also see no reason why the
president, who resides away from
here. and performed no actual SER
ices here in the operation Of the
plant, should be paid $50 q month
a total Of 5000 in y months. While
during war times perhaps Il salary
to the superintendent OF SO 900 was
not excessive, yet l feel that since
everything else has gone down, q
salary of $4,000 year ought to
hire a competent man to operate g.
gas plant Of the size Of the one
here
These three items alone, to wit.
S1,S24 paid book Keeper i'm Balti-
more, $500 paid president, and $500
excess paid superintendent, aggrc-
gate $3.324.
In addition to this, it appeared
that the company was paying labor.
some 70 cents. some fifty cents and
some fortyfive cents per hour. or
500, $500 or $40 for a ter hour
day. I feel that under present
conditions that there could be at
least a $25 per cent reduction in
this labor, which would be a cor-
siderable saving, and that rcduc-
ton could be made along these
lines and the gas company still earn
q reasonable profit, and not allow
che gas rates 10 remain higher than
the franchise price, fin order that
these expenses hcreinbeforc refer
red to be maintained, but / fccl that
these items should be cut down and
the rate reduced and by so doing
the companyS net earnings would
be about the same as it would be to
allo" these charges to remain and
the ate to continue at $1.75.
The company, according TO the
admission before Council hat, only
$156,000, in round numbers. in
vested in the plant here There
fore, a net income OF $l0,@2 would
pay I per cent on its investment
The company earned for six months
OF this year 1888 over operating
expenses. If this is reduced by p
per cent and no morc gas sold then
they would earn for the next six
months - per cent less, or $i.75I.
which added to the $6.333333 would
make S11,oS4, which would be Il
little over I per cent on the invest
ment
Let's see what viii be the result
by using the basis of eliminating
the book-kcepcr at Baltimore, ana
the $40 a month paid TO the prcSi-
dent, and reduction OF $500 in the
salary Of the superintendent.
Amount Of gas on $1.50 basis
for 6 months .75I
Eook-keeper's salary, Balti-
more, for months 300
Reduction in Superirtendent's
salary 40
Total --$l i 1;''
For - months tnis would be
$lf,S2G, which would be something
over nine per cent on the invested
capital. and arriving :, his have
not taken into consideration anE'
reduction in the seventy, fifty ana
fortytive cents per hour labor, nor
have ! taken into consideration any
reduction III their bul-iu;; coke and
OF! in the futurc at {, price less than
they paid for TIC first six months
of this year.
From the best information OBJ
tainablc was satisfied that She
company for the n@At twelve
months would save not less than
5000 on the cost OF coke and c!i
over the preceding t.vrlvc ason;hs.
and for the next six n4ortl,S. his
would amount TO 2,33f. i;aS"G
upon this rcasoua! :.>5NttI:3 i,tici
md 1lnn-c -cI;r1i.ntin, % ;Ii1. ~ n. :.