Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-09-19
ALEXANDRIA SELLS PLANT.
Boston Firm Pays s75O,OOO for Munich
pally Owned Utility.

Boston Firm Pays $4,000 for Munich
pally- Owned Utility.
Special Dispatch to The Star.
ALEXANDRIA, Va, September 1e.--
City council here late yesterday voted
to sell the municipality gas gener-
ating plant and mains to the Seaboard
Investment Trust of Boston, which
company owns the Washington Gas
Light Co. and the Rosslyn Gas Light
Co. The sale carries with 1t a 30-year
franchise for the manufacture and sale
Of gas here. The purchase price was
$3.50, 900, of which a check for $22 500
paid as soon as the contract Is drawn
up.
One negative vote was heard when
the bid was put up. the action being
carried 4 to /. Councilman Edmund
F. TIGER, who voted in the negative,
stated that he felt the matter of the
sale should go to the voters of this city,
as optionally provided in an act Of the
Virginia Legislature last session.
By-products Plant.
During discussion of the bid it was
announced by oflcials of the company
that Alexandra would definitely be the
site of the proposed by-products plant
of the Washington Gas Light Co. This
plant will employ approximately 800
men, and besides gas viii manufacture
coke, chemicals and other by-products.
Several sites for this plant are under
consideration, among which are UNDER
stood to be the property of the old
Robert Portner Brewing Co, the old
Virginia Shipbuilding Co. property, and
a third location in another section OF
the city and other possible locations
This plant will not only supply gas TO
Alexandria and Arlington County, but
also to washington, as the present plant
of the Washington Gas Light 90. at
Twenty-fourth and @ streets northwest
must be abandoned as 1t Is on land that
is part of the new parkway system OF
Work viii begin Immediately, it was
announced, first to lay a giant main 70
feed Alexandra from Rosslyn until the
new by-products plant is built and sec
ond to lay service mains TO houses IN
Potomac and other outlying sections
which are not now served with gas. The
Alexandra generating plant will be
abandoned as soon as possible, or when
the washington plant Is tapped. TINS
is expected to be in about four months.
Besides the acquisition OF the inn
portant by-products plant, citizens here
will materially benefit from the sale OF
the plant by receiving material reduc-
lions in the present rates, and, accord
ing to officials of the purchasing com
pany, a much better grade OF gas thah
they are now receiving.
New Rate Schedule.
The contract for the sale contains
maximum rates to be charged which
are 80 cents per 1000 cubic feet less
than now charged. The present rate
to small consumers, or users OF less than
10000 cubic feet per month, is Sl.75 per
/ 900 cubic feet with a discount of 80
cents If paid within 10 days, which re-
duces the rate to 81 AS. The new maxi
mum rate will be $l.l5 per 1000 cubic
feet for the first $4,000 cubic feet per
month used, with penalty of 10 per
cent II not paid promptly.
officials of the gas company stated
that figuring on the basis Of the pres
ent heating power, or B. T. u, of gas
now furnished, which they state is $40
B. T. u, as compared with the 900 B.
T. u. gas which they will be required
to furnish, household consumers will be
paying at the rate of 90 cents per 1000
cubic feet for the gas now received
Other rates contained in the sale
contract are commensurably lower, with
the rate to commercial users, or those
using more than 100000 cubic feet per
month, at 85 cents per 1000 cubic
feet. The new rates will, 1t is esti-
mated, reduce the city's annual gas
bill between $4,000 and $4,000. The
property of the old gas plant here go
ing to the Seaboard Trust Co. in its
entirety except the trestle of the
Southern Railway Co at the plant and
the ground on which 1t stands, which
the city and the company shall have
joint use of at all times.
City Council will meet again Mon
day, when the formal contract will be
drawn UP and the sale completed. At
this time it is also expected that three
trustees, to receive the money as pro-
vided by the franchise for the sale OF
the plant, will be named.
Terms Of Franchise.
According to the franchise, the
trustees to be appointed will handle
the money, and seven-eighths of 1t will
be reserved to pay off existing city
bonded indebtedness as it comes due.
The other one-eighth probably will be
set aside as temporary loan fund to
the city, to do away with the present
necessity of the city borrowing from
banks at various times during the year
in anticipation Of the collection of
taxes.
When council met to receive bids
on the plant a week ago the bid OF
the Seaboard Investment Trust was the
only bid received. At yesterdays meet
ing the Seaboard Trust was represented
by Maurice Judd and Attorney O. g.
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