The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1926-08-19
BabsOn Says Gas Is
Making Big Headway

W. Babson said that few people
/ realize the tremendous growth IN the
usc Of gas. and the wonderful pros
poets for future growth. There is
La widespread idea that since the ad-
vent Of electricity the use Of gas has
been rapidly declining. As a matter
Of fact, growth in consumption over
- number Of years has been little
short nf spectacular Mr.. Babson
statement follows:
Last year aggregate sales Of manu-
featured gas for all purposes amount
ell to over 42l 900. 100000 cubic feet
!. or almost . IL times the sales IN
1890 when the use Of gas for light
ing was at its height. Only about ~
per cent of the total output Of gas
lis now used for lighting, whereas
L years ago this was practically its sole
use. About 30 per cent Of the total
output is now being used IN Industrial
4 plants.
"Thc use Of gas for cooking and
rvatc- heating MS we'll as for air heat
Ing in domestic homes and in public
i sal sn ent- mas grown tremendous
u, II is estimated that there are
today almost 10000, 900 gas stoves, b.
son, 900 gas water heaters and 4,6OO,-
sUttv gas space heaters in use in the
United States. Last year alone there
! were sold 100000 new gas ranges, i5O,-
! 600 gas water heaters and 5OO,O00 gas
/ space heaters. Installation of house
heating system is new development,
and IS proceeding at the rate OF about
L lOO,0 900 a year. The new heating load
developed by all these uses far ex-
ceeds the old lighting load lost to
the electric companies.
"The reason for this tremendous
growth in the use Of gas is not hard
! to understand. Gas as heat. like cleo.
trical heat, is a clean, convenient ana
comfortable heat. Although not quite
so flexible as electrical heat, 1t Is lar
more so than that derived from coal
or oil. As compared with coal. It's
use eliminates the expense and NUS
nnccs Of coal storage and handing
and Of ash removal. ! understand
that an efficient gas manufacturing
system extracts up to 50 per cent OF
4hc possible heat in coal, while in the
gene ration of electricity not more
than Is per cent is made available.
"a study Of the gas industry shows
. clearly that, in spite Of the excellent
. progress heretofore made in expand
Ing the use Of gas, the full possible
. ties Of the industry have barely been
. started. Rates in many cities are still
| too high for the general adoption OF
gas for Industrial heating, notwith.
standing the fact that a large con
sumption could easily be secured al
y good profit if they were lowered
A fixed allowable rate OF return OF
gas companies investment is one o.
the drawbacks. With limit on tht
amount they are permitted to earn
there Is but little incentive to initiats
new enterprises for the expansion o.
business.
"Anothcr factor which has held bacl
many companies from developing tn
industrial and house heating business
is the fear of having large amount Q
plant idle through the summe
months. Even now the greatest nec'
of the industry is for additional sum
mcr business. For this reason man!
companies are on the alert to Obtaii
summer business, and have not don
much toward expanding the winte
load. Notwithstanding these draw
backs, investors in gas sccuritie
should benefit greatly from these de
velopments.
'1hc rapid expansion Of the ga
business will require large amount
Of new. capital. Many Of the large
companies are prominent IN the gen
cral utility field. In addition
financing through banking house
many have sought to enroll their Gus
toners as stockholders. The manu-
featured gas industry with equipmcn
and appliance companies included req
resents an investment Of about -
OOO, 900, 900. Before the war annual re
quiremcnts Of new capital were ont
ftls Ol,O 900 Today they are owe
$500 900 900. The capital of the aver
are ras company, according to est
mates. has increased GA times sine
1850. while the value Of the Outpu
has increased II times.