Indianapolis Times, Indianapolis, Marion County, 1 July 1936 — Page 9
ENGINEER SAYS
Findings Given Utility Place Natural Fuel Figure 3 Cents Higher.
(Continued from Page One) | |
881 coke at a much higher price than i formerly obtained for this principal 8 by-product. / Bh *“Mr. Angus has covered your 1o- - eal gas situation in a complete and very clear manner and the only change I would have suggested to his fine presentation is beginning with the sixth page, paragraph 5, reading, ‘To date it appears, etc.’ “In this paragraph, with a 15year natural gas contract as covin my report, the cost of the age-over and additional equipment for natural gas should | be less due to its being amortized over a 15-year period and the cost of maintaining the present plant as a standby seems too high, although it 1s, of course] well to be conseryative in the maintenance estimales.
Costs| Are Listed
“Even with [these changes, however, and disregarding the two items * of change-over and plant mainte- ’ nance above referred to, the cost of ; Hawural gas per 1000 cu. ft. based on your first three months opsration in 1936 would have been as follows: | N “Equivalent cost of natural j gas on 570 btu basis, with leakage a/constant transmission and distribution expense | Fixed charges
Total burner natural gas delivered at the burner...$. | © Total cost of manufactured A _ gas delivered under presv J ent condition ..... Seaers Saving by manufacturing gas ..... Hevessnsennness $ 037 “Please note that my report of jast December 5 covered the first nine months operations in 1935,
based ow facts and data obtained.
from your utility, standard operating conditions and current practice, all with due consideration respecting the then conceivable trend of future operations and conditions. “During the frst nine months of 1935 ‘all of your coke ovens were run on a uniform and fairly fast coking -time, producing only a small percentage of metallurgical coke which sells at ‘a higher price than domestic coke. The operations were . afterwards changed by putting ore of your three oven batteries on slow coking time to produce a maximuin B© amount of metallurgical coke which \ was then selling for $2.30 more per ton than domestic coke. “It was brought out in my report that if additional metallurgical . coke could be sold, there would be 4 savings on the|cost of gas made &s Pi. the cost of coke oven gas is governed primarily by the difference 3 between the gene price of the coke ‘i and the cost of the coal.
i Cites Coke Profits
5 *With the cost of coke downi. ward trend in cost of coke oven gas [| due to. the unusual sales of metali. Jurgical coke, new managerial abil- ~ ity of your utility with respect to economical manufacture and agres= 5 sive sales, all three oven batteries ’ are now on a metallurgical coke production basis, resulting in "a holder cost which is less than. a comparative cost of natural gas. | : “Domestic, commercial and indus ? trial prices for gas will benefit by \ this reduced cost for even with the reduced volume of coke oven gas i méde when producing metallurgical o coke on a longer coking time and # the amount of carburetted Water gas to be made for supplying the bh demand, the cost of the final city gas is still below that of a com- { parative cost of natural gas. ¢ “Taking the above into considera tion the cost per therm of the pres- # ent city gas in the holder must be } reconstructed from that shown in ( ! my report to the cost which is now i being obtained and this without reference to change-over and plant maintenance expense would be Ad $0286 per therm for present eity kf? gas for the first three months of *4 1936 and_$. o330) per therm for nat- ‘# ural gas. “. “With regard to any additional i { industrial demand for natural gas, will state that as above outlined the industries now using gas will receive the benefit in price reduction ? of the les costs you are obtaining 3 for manufactured gas, and if a { larger volume of industrial gas is A demanded, your present coke oven Bb gas output can be increased by heatL | ing the coke ovens with producer “Af gas instead of part of the gas made, thus Feleasing | nore coke oven gas sale.
Changes are Discussed
~ "If it were found economical in future, due to changed condi- , to use natural gas, your utility, ‘were then to use straight natgas, would obtain much more
) 4 x
opriate. contract provisions d expand its activities to a very g extent without incurring the tal expenditure which would be tial in the production and disution of manufactured gas. means moreover that if the buting company or utility finds
OF TREASURY SEEN AS HELP
Resettlement Office Move to City Is Expected to Speed Work.
Necessity of close connections with a branch office of the United States Treasury and extensive office space prompted Resettlement Administration officials to move regional offices here from Champaign, Ill., according to O. B. Dryden, regional adviser. Because all resettlement funds are disbursed through the procurement division located in Indianapolis, it was decided to have
by government officials to lease the chusetts-av, where most of the five
by the administration. At the office of George J. Marott, owner of the building, it was said he expected to get papers on the lease contract by tomorrow. Mr. Dryden said the Champaign offices are in five buildings and that housing them in a single structure
PIANOS Large Stock Lowest Prices Wilking Musie Co.
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st.
In a project so hazardous that only Lloyd's of England, would underwrite it, this 183-foot, 3,500,-000-pound steeple of the Central Methodist Church, irr the heart of downtown Detroit, is to be moved 26 feet to the main body of the church, to make way for street widening. As shown above, a segment has been cut from the edifice so that the church could be “shrunk.”
per MCP less than the regular rate. I understand, however, that your present costs of gas are even lower than natural gas would be with these concessions. “These natural gas price abatement concessions were intended to assist your utility through the conversion and adaptation period when, unusual and non-recurring expenses are apt to be heavy and as outlined in my report would amount to $104,800 production and natural gas costs E first year and $62,980 production and 0 natural gas costs the second year. “A statement of conditions as they now exist would entail an entire new study of your problem, but the above will, I believe, prove that this is not necessary at present as the complexities of your situation, which are being ably and actively handled by your board of directors and yourself, are such that if full considerations are given my former report in its entirety, your present situation can be readily analyzed therefrom by those familiar with ‘the manufactured and naturel gasibusiness.” . ;
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