Modern Gasworks Practice

8 MODERN GASWORKS PRACTICE The South Metropolitan Bill in many ways is a model one, and will probably form a basis for many other undertakings in the future. It does not follow, however, that the division of surplus profits in the same proportion will be the best policy that can be adopted. Each. case must be treated on its merits, having regard to previous conditions. A statutory Company has powers and obligations under its own special Act or Provisional Order, as well as being govemed by the General Acts, which are incorporated therewith. as a whole or in part. A Provisional Order may be granted to a non-statutory Company under the Gas and Water Works Facilities Acts authoriz-ing the Company to supply gas and conferring the necessary incidental powers. The relation of such a non-statutory Company with. local authorities and with other statutory Companies is similar to that of a statutory Company. Statutory Companies and non-statutory Companies having powers under Pro-visional Orders were compelled to supply gas of a prescribed quality within their defined limits of supply, and were usually subject to the infliction of certain penalties if the conditions as to the purity and heating or illuminating power were not coni-plied with. Owing to the extended uses of gas for purposes in which the heating valne is of primary importance, Parliament eventually substituted a calorific test for the former universal illuminating test. It is interesting to record that the Gaslight and Coke Company of London had for some time a dual test, but the Company was relieved from the older test as a result of application to Parliament during Session 1914. In many cases, under the original Acts, the price of gas to consumers was grad-uated oii a sliding scale basis, in accordance with which the dividend paid might be increased above a certain standard as the price charged was decreased below an accompanying standard. These two figures were known as the “Standard Price and Standard Dividend," and in the case of an increase in price above the standard, the dividend had to decrease. At the time, Parliament fixed this standard by a consideration of all circum-stances tending to affect the price at which. the gas could be produced, plus a margin for contingencies. The accompanying dividend was fixed with regard to the hi story and position of the Company, the considerations as to Capital, and the position of the money market at the time of the application. Many older undertakings are governed by a maximum price and a maximum dividend. The former method is more satisfactory to consumers and shareholders alike, and is generally adopted, with minor variations, in all new Acts. In making application to Parliament or the Board of Trade, there are marv Standing Orders and Regulations to be complied with. As, however, a Parlia-mentary Agent must be employed to pilot the Bill or Order through its various stages, the engineer or manager would be advised of all such requirements coming within his (the agent’s) province. A non-statutory Company operates as a result of established practice or under the goodwill of the local authority. In opening roads, they may have to obtain the sanction of more than one local authority, e.g. for district and main or county roads.