THE NEW GAS WORKS.

New Zealand Times, Volume XXXI, Issue 4785, 24 July 1876, Page 2

THE NEW GAS WORKS.

TO THE EDITOR OP THE NEW ZEALAND TIMES. Sib, —A prospectus o£ the proposed new consumers’ company has been handed to me, and as the subject is o£ considerable interest, not only to gas consumers, but to the citizens generally, I propose -without entering upon the general merits of the question to test the reliability of the estimates set forth by a comparison with the cost to end of 1875 of the works now erected in Wellington, premising that the greater portion of the plant was purchased when iron was at its lowest point, the pipes costing only £4 15s. per ton, the present price being about £7, the works being estimated to produce fifteen million feet per annum. The estimate is:—General plant and holder, £7150 ; erection, £2150; buildings and land, £2OOO ; total, £11,600. The cost of the present works, as above, was £16,900, the buildings alone costing about £2600. If the works had been laid out to a larger scale at first they would have cost less, but not so much less as the estimate. Mains estimated, £3867 ; actual cost of mains now laid, £6735 ; meters and services estimated at £1000; actual cost of those in use, £3467; and you will see the prospectus proposes two meters where now only one is used. So much for the cost of the works. Now for receipts. They expect to sell, say fifteen and a quarter million feet ; the actual quantity consumed in 1875 was under thirteen million. The estimate of expenditure is about the same proportion as exists at these works, except that coal costs over 355., but £SOO per annum is expected to pay salaries, rates, printing, and sundries. If only half the quantity of gas were sold the works would be-carried on-at a loss, and to allow the whole quantity to be sold it would be necessary to take all the present company’s business and close their works, a scarcely possible contingency. I think, sir, I have said enough to show the unreliability of the estimates in the prospectus, aud that if the Empire Gas Consumers Company does succeed in starting its works the balance will be on the other side of the profit and loss account. It is a simple matter to show a profitable business on paper, but facts are stubborn things. I shall be happy to go into figures and give any further information that may be desired to anyone who takes an interest in the matter, but will for the present trouble you no further.—l am, &0., J. B. George. Wellington, July 21.