COMPANY?

WRITTEN FOR THE TWENTY-NINTH ANNUAL MEETING OF THE AMERICAN GAS LIGHT ASSOCIATION, BY FRANK D. MOSES, TRENTON, N. J.

To make permanent profits for its owners and render satisfactory services to the public in return. A Gas Company badly managed rarely does either. It is generally a burden to its owners and an indirect injury to like interests. It is easier to build a gas works and produce one million feet of gas, than it is to find a market for the same; therefore the most important end of the gas business relates to the sale of gas rather than to its production.

Perhaps the following experience will teach disappointed owners and managers of gas properties some ways of relief and improvement.

Some years ago the writer was employed to investigate and report, first, on the advisability of removing an old gas works to a new location. Second, whether the proposed plans for the proposed new works could be reduced in cost, and if so, how. One or two engineers had previously figured on the job, and submitted bids running between thirty and thirty-five thousand dollars. While thus engaged I saw much of the town, of its residences, stores and people, and was much amazed at the rarity of gas, and the abundance of oil and electric lights. Later I inquired about the number of gas ranges in use, and the reply was to the effect that they were so few it did not pay to bother with them, that none were kept in stock, never had been, and that when wanted they were obtained from another gas company in a near-by town, and sold to consumers at list price. I had already ascertained that the old works were not bad and had greater capacity than had been used. I grew suspicious, began to feel a deep sense of sympathy for that thirty or thirty-five thousand dollars that was to be invested for profitable returns under such unfavorable con ́ditions, and concluded to investigate further on my own account

I found many streets with houses, but without gas mains; I found too, a pitiful per capita consumption and that the management of the company was exceeding great in everything that contributed to the minimum cost of gas, and exceeding small in everything that contributed to the maximum consumption of gas.

My report to the owners came near getting me into trouble, and very properly so as I nearly forgot to report on the specific subjects for which I had been hired, and dealt almost exclusively with subjects for which I was not hired. The works were not removed Only a few thousand of the thirty were put into overhauling and bettering the old works; more were put into extensions of gas mains, services, Welsbach lights and gas cooking and heating appliances, meters, etc., and within one year after these progressive steps had been initiated, the output and sale had doubled, and the works were still able to furnish more gas.

For aught I know the cost of gas in the holder may not have been quite as low as before; I am only sure the owners had forgiven my oversight of their original orders to me, and that they were making more money and congratulating themselves upon the reforms that had been introduced.

While recognizing the great need of minimum cost of gas, I wish to emphasize my conviction that that question is greatly overshadowed by that of increased gas consumption without which maximum profits cannot be realized out of the business.

It is a comparatively easy thing now-a-days to make gas economically; there are many able engineers to plan, and contractors to build and equip almost perfect gas works. There is also a good supply of engineers to run them, to teach assistants how to do it, and to introduce and maintain order and discipline in every department connected therewith.

In the commercial department of the gas business there is constant need of keen and aggressive business methods, and here I think there is sore need for improvement. When slow conservative policies and high prices ruled and the use of gas was practically limited to light, and to city consumption, the modern commercial spirit had no show, but the spirit of ill-will and distrust between the company and the consumer did have a show, and continues to plague the ambitious, up-to-date gas company.

While marked progress towards better commercial conditions

and financial results has been made, much remains to be done in order to realize the great possibilities for profit and usefulness in the gas industry. Considering as I do future prospects brighter and usefulness greater than ever in the past, the work and thought devoted to this paper will be well paid for if I succeed in adding anything new or useful to a subject ably and frequently discussed before you in the past.

Taking it for granted that we all want to, and must sell more gas, that existing conditions call for lower and lower prices, and that these calls have been and will continue to be met successfully, I will confine myself entirely to fuel gas and its increased use by the public, through the efforts of the commercial department of the company.

My favorite example of that department is that of an enterprising, aggressive mercantile establishment, everlastingly advertising its wares, enjoying large patronage, favorably spoken of by everybody, making money and extending the establishment all the time. It may sell dry goods, or hardware, or anything else, while we only have gas to sell; still I believe that we have only to study the causes of its success, and apply its methods as far as practical to our business in order to reach a fair measure of the success which such establishments are enjoying.

The following rules represent the groundwork upon which I think the commercial department for selling fuel gas should be run. First I am Fuel Gas and have brought my industry from depression into prosperity and respect.

Second: Thou shalt not be close-fisted, or "penny wise and pound foolish." But thou shalt spread out my arteries to all people.

Third: Thou shalt not neglect thy opportunities to spread my merits, that the people may enjoy my blessings.

Fourth: Thou shalt provide my appliances unto my people, to the end that they may use them constantly and economically.

Fifth Thou shalt not humiliate thyself, but thou shalt be active, intelligent and deliberate and tarry long among thy brethren. Sixth Thou shalt be indulgent to others who know less than you do, and treat them as brothers.

Seventh: Thou shalt make use of me in all seasons, for my virtues are everlasting.

Eighth Remember thy bosses to make them happy and rich. Ninth Six days shalt thou labor in joy and watchfulness, that thou mayest be wise and earn thy bread.

Tenth: But the seventh day thou shalt not do any work, unless you have to.

I hope no one will accuse me of a lack of reverence in preparing these rules, and I am afraid they will not be clear enough unless I take a little time in explaining them, and with your permission I will do so.

First: Fuel Gas is recognized as a redeemer of the gas industry. When the electric light appeared, owners of gas properties became frightened, and the value of gas securities depreciated. It was felt that electricity would encroach upon if not entirely supersede gas as a lighting agent; as a matter of fact it has encroached and continues to do so, as the percentage of gas used for lighting has not increased in fair proportion. But now gas securities have increased in value and popularity and, on an average, are worth more to-day and are of higher repute than ever before. Fuel gas is alone responsible for this happy situation. The people everywhere recognize the great utility of fuel gas. It has lessened drudgery and improved health. Through the improved method of production, the price of gas has been continually cheapened, so that the poor as well as the rich may use it. When its merits are understood it has challenged the respect of the people.

Second: Many owners of gas properties have refused to invest the funds required for modern betterments and extensions. They have failed to share in the enormous benefits which have come to others who have done so. They complain that they are not prosperous, yet they alone are probably responsible for it. Other companies having modern and efficient works have failed to extend the mains and services into streets along which are found many residents who would be only too glad to use gas if they could get it. Entirely too many gas people overlook the fact that profits are contingent upon ample facilities, and practical and constant efforts in the right direction.

They forget that the larger

the consumption, the cheaper the gas. They forget that it is possible to sell the entire capacity of a vast majority of gas works in this country, and that many of them, if the commercial department were properly managed, would be able to reach a point

where the consumption could be maintained on a par with the production during the entire 24 hours.

Third: There are lots of people who do not know the value of gas for fuel purposes; those who have never used it as well as those who have. They must be taught all about it, either verbally, or through the daily papers or other printed matter. There are many ways of educating the people, by any one of the three foregoing methods. I wish simply to emphasize that whether one, two or all of the said methods be employed, they must be persistent and everlasting. One campaign or season is not sufficient, it must be repeated every season. Communities are very much like individuals; some are progressive, some are unprogressive; some are quick, some are slow; and with some the weather is more constant than with others. All the factors have their influence, and must be considered.

Fourth: Gas Companies should provide suitable, centrally located and attractive quarters for the exhibition of gas appliances. A bare, unadorned room detracts from the goods exhibited, whereas an attractive room improves them. They must provide gas appliances, for all kinds of domestic and mechanical purposes. The list includes for domestic purposes-gas ranges, heating, laundry and sad iron stoves, water heaters, etc. In the mechanical line, where the size and industries of the town warrant it, a sample gas engine may be profitably exhibited, and a large number of them can be sold if effective canvassing for their introduction is made. Appliances should be contracted for in good time, and carried in stock in goodly quantities. Samples should be kept shining and attractive. One of the most serious drawbacks to the popularity of gas as a fuel arises from the ignorance of the masses respecting its use. It is not so much the price of gas, but the service patrons get, that tells for or against the consumption. There is more profitable work to do among smaller than larger consumers, because the former are in the majority. Once a number of small households in a community begin using gas for fuel, its consumption increases many fold, and at compound interest. Inspe tion of all gas appliances in use should be made frequently, and at fixed periods. Inspectors should be selected with reference to their intelligence, their knowledge of gas appliances, and their ability to impart that knowledge to the user. Only by such methods will