The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-03-18

pdllJ VI JlOuuSlllS 4Lo NOhCB
averaged S1.1136 a 1000 cubic
feet Of gas sold in the last p
years, or more than 6 cents
above the price which it now
receives from the general gas
consumer.
This showing does not necessarily
imply that the company is selling
gas at a loss. The above figures,
while they give the total produc-
ton costs Of the company. only give
consideration 70 the ratio OF these
costs To the amount OF gas sold. The
total net cost OF production 10 all
revenues would be reduced If the
prices received for coke and its other
products we're to be calculated.
Large Expense Indicated
The study. does, nevertheless, in
dictate the large expense involved
in producing the various products Of
the company and the urgent neces-
sity Of receiving a good price Tor
its coke in order 10 cut down these
heavy costs.
In considering the production
costs of the Citizens Gas Co. II
should be remembered that the basic
function OF the enterprise is the
making Of coke-the manufactured
gas which is sold TO indianapolis
citizens being a by-product OF TINS
work. Because OF this 1t Is difficult
10 try TO calculate the dollar and
cents production costs OF gas and
coke separately.
A look into two years earnings,
however. gives a good impression OF
Just where a large proportion OF TINS
production expense may lie In 1870
total operating revenues rose 10 Sd
2l7O34 from S5.337. III in the pre-
ceding year, an increase Of $780,
600 Revenues from residuals, which
include coke, accounted for s2.6lf,-
600 Of this increase and gas earn
inzs the small balance.
Operating Costs Also Rise
Accompanying this sharp expan-
sion in revenues was a rise OF
50 s55 e18 in operating expenses TO
a total OF S7.551 psf. Further sur
vev reveals that S2.495,749 Of the
lump in operating expenses was IN
production costs, bringing that item
up TO So 469.O75. or the equivalent OF
81 9OS6 per 1000 cubic feet Of gas
sold.
This acceleration in activity did
have the effect Of sending gross in
come Of the company up from SAL
26s in 1919 70 sS72. $50 in 1920. but
the latter year was the period in
which coke prices were at their
peak level.
on the basis OF these figures it
would seem that the cost Of max
ing coke in itself constitutes an
important portion Of the total pro-
duction expenses Of the company.
This view is further strengthened
Nv the fact that since 1928. which
marked the inauguration OF the pc
Rod in which gas earnings have
topped return from residuals. pro-
ductOn costs Of the Citizens Gas
Co. have been on the dOwngrade.
Production costs in 1888. incidental
ly, we're the third lowest on record
Peak Reached in 1920
Distribution costs Of the company
DO not bulk large. the peak being
reached in 1920 when the total was
S32S.O72. or less than 81 cents a
1000 cubic feet Of gas sold. Distri-
button costs in the last few yeats
have averaged around 10 cents.
Salaries TO general officers from
1914 TO 1893 inclusive. aggregated
approximately S7O5,5S1. In arriving
at this figure the writer and the
Citizens Gas Co. are at odds. The
writer took his figures from the
table Distribution Of PayrollS."
which is a part Of the annual report
fled with the Public Service Com
mission. The Citizens Gas Co.
maintains that this IS not a true
picture. but the writer has selected
il because the funds were charged
against general officers. which or
oinarilv means executive officers.
In 1914 salaries TO general off,
GERS tOtalled $500 and climbed al
most steadily upward 70 a peak Of
S4S.s59 in 1928. Reductions have
since been made and the total Of
item at the close Of 1888 was $685.
$50.
Directors Get $3.50
Directors since 1915 have received
a total OF approximately SS4.3lO.
The high point in fees OF this sort
was $500 in 1916. According 10
Section 3. Article s. OF the Articles
Of Incorporation OF the Citizens Gas
Co. every director shall receive the
sum OF IS for attendance at each
meeting Of the board or Of the ex-
ecutive committee. when a member
Of that committee. but only when
the records Of such meeting shall
show that he was present within
10 minutes OF the time set. No di-
rector shall receive any other COM
penSation for his services as d.
rector. officer. or member OF any
WE PAY CASH r