GAS COMPANIES AND LOCAL BODIES.

Evening Star, Issue 3826, 29 May 1875, Page 3

GAS COMPANIES AND LOCAL BODIES.

{Concluded) Prior to 1869 there had been two gas com panies in Glasgow, with a combined capital of 1.415,000, on which they usually paid a dividend at the rate of 10 per cent. The companies were bought out by the corporation giving the shareholders perpetual annuities at the rate of 9 per cent. The price of gas was immediately reduced from 4s 7d to 4s 2 *, and the illuminating power was greatly _ increased. The price of canuel coal in Glasgow is regarded as exceptionally high. In two years after taking possession, the corporation had for one year a surplus profit of L 6,587. Dundee is a striking instance of determination on the part of the corporation to obtain possession of the works. They were fought by the local company at every step, the expenses of obtaining their bill and arbitration alone cost L 40,000, but nevertheless they succeeded in achieving their object. The price of gas was reduced from 5s 4d to 4s 7 4 oer 1,000 ft, and still there was a surplus profit f ° r 1871 of nearly L 2,000, Leeds followed suit, * nd . entei i ed . V ' works in September, JH/0. Thl T PaDy " to> 9d, and for Ihe price of gas was reciuw ' .hotit L 12.000. 1871 there was a surplus profit oi.. j ’ The same may be said of gas enterprise -fair city of Perth. In 1823 the first gas wm... north of the Forth were erected in that city. The gas was then charged for at the rate of 15s per I,oooft. That was gradually reduced until 1845, when 8s was charged. Some years afterwards the local council encouraged the formation of a gas company, which brought the price down to ss. This company was, however, soon absorbed by the old one, and there was left no other alternative than for the corporation to purchase the works, and this they accordingly did. In the following towns the local bodies have also purchased the gas works previously in in the hand of companies, with the most favorable results :—Birkenhead, price reduced Is per I,oooft, quality, not changed, but considerable profits effected, which are applied to ocal improvements; Burnley, improved quality from 12 to 17 candles, price reduced from 4s 6d to 3s 6d per 1000 ft, and annual profit made ; Greenock, price reduced, illuminating power increased, one-third, large profits; Oldham, quality increased from 12 to 16i candles, price reduced to Is 2d (per I,oooft, considerable annual profit; Stockport, gas improved from ten to twenty-four candles without increasing charge, profits; Stockton, quality improved to the extent of four candles, charge reduced by 9d per 1,000 ft; Rochdale, quality improved from fifteen to twenty candlos, price reduced 2s 6d per I,oooft, profit L 51,000, expended in town improvements. In addition to these towns, there are many others for which the same may be urged. Paisley is one of the most prominent. The old price had been 4s 2d. The Corporation reduced it to 2s 9d : illuminating (power twenty-eight eandles ; and still large profits were obtained. There may also be included Arbroath, Aberdeen, Carlisle, Salfom, Rotherham, and Buxton. l That Birmingham, Liverpool, and other large cities and towns have not adopted similiar measures and taken the management of the local gas works out of the hands of private companies is solely attributable to the low rates charged, and the existence of contracts extending over long periods, which cannot be abrogated without expensive litigation. From the aboye however it will be seen that great public advantage may be gained by the transfer of gas works to local bodies.—‘Age,’