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Newspaper Page Text
'The gas company is after more'
oash than it has a right to. That is
fte underlying feature of the city ex
perts' report. The proposed ordi
nance and terms of the gas company
are going to slam the little fellow
(' harder than ever instead of decreas
ing his bill
When the company gets through
soaking the small consumer he will
be paying about the same price for
"heat unit" gas as he is paying now
for candle power gas, which costs
much more to make. In other words.i
the company is trying to "put one,
'over," the engineers hint.
The city experts told the council
gaS' committee, today that the gas
oompany is trying to make the peo
ple pay interest 6n the watered stock
of the gas company. This water
amounts to about $35,000,009. The
return asked by the gas company -on
this amount makes about $2,100,000.
Bemis and Bichberg quote fig
ures of a gas expert now in the
employ of the gas company to show
that the property of the company on
which it should be allowed a profit.
ofN per cent for cash invested is
about $42,236,409. But the gas
crowd want a 6 per cent return on
$85,262,000, which represents ithe
capital stock. The engineers then
point out that if the gas company'
gets away with the $85,000,000 figure
the pejjple will be handing out a cold
2,100,000 to a corporation that has
been fighting low rates successfully
fqr years. v
-Other bad features of the con?
pans offer are exposed. Better
plans in the interest of the consumer
are suggested. In brief the engineers
That the people save atJeast 1Q
cents per thousand feet by giving the
gas company a return on actual
money invested inBtead of on capital
stock, which is partly water.
That instead of charging the con
sumer at least 40 cents whether any
gas is used or not, a readiness-to-erve
charge be made. This will
make consumer pay -a quarter if he
usea one to ten thousand feet of gas
a month, a fee of three dollars a year.
It will amount to $2,000,000 a -year
and be figured as part of the profit of
the company to be"allowed under the
new ordinance, so the people are not
giving away anything because the
quarter reduces the price of gas.
r That the rates on the first 10,000
cubic feet be 55 cents for the years
1917, 1918 and 1919. During the next
two years the contract will run the
rate will drop to 50 cents. (The con
sumer is, now paying 80 cents, with"
noprovision for a refund unless the ",
city beats the jas company in the .
supreme court). - t
That s. low rate for all gasover 10,
000 feet bemade to encourage people
to heat their houses with gas. The
more gas used, the cheaper it will
That instead of the gas company,
getting'85 per cent of all profit in ex-
cess of 6 per cent to cover bond and
security interest and the people get
ting back only 15 per cent, it should ,
be thepther way'arountf.
That if-tfie city is going to hand
the company a fair return on the
.face value of jthe firm's securities, in
stead of a fair return ,on the value of
the? property, a dhaige of 10 Cents
per thousand feet must be added to
all figures in the; city1 report. -
That the suggestion of the com
pany to make 'the ordinance for five
years is a good one and. that the com- '
pany is right when it wants to
change to the cheaper heat unit way
of making gas out or coal instead of -oiL
But the experts ay the people
should get Cheaper gas if it costs the
company less to make.
That instead of the company giv
ing consumers only one oheap man
tle burner, which wilT be needed
when the unit gas is put out, it,
should give one mantle free and
other'mantles at half cost and should
inspect them every month.
Under thep 'lans proposed by city
experts, the poet per thousand to the