Modern Gasworks Practice

10 MODERN GASWORKS PRACTICE (a) Insufficient or excessive repairs and renewals. (b) Working results above or below the normal. (c) Abnormal conditions regarding prices of coal or residuals. (d) Contracts entered into, or rights and Privileges affected by transference. (e) Recent scale of growtli and prospects. (f) Fairness of price charged for gas. Goodwill as such is not saleable, although item (e) covers Claims for future increased profits. The term of years’ purchase is dependent 011 the interest which an investor can get with equal security. The period varies considerably, rangingfrom ten to thirty years. The seller riglitly Claims to be put in an equally good position after the sale ; in other words, he must earn the same income with. the same security. Anything up to ten per cent, is addecl for compulsory purchase (where it is compulsory); that is, for Interruption of tenure, expense and trouble in seeking new Investments, etc., but this is usually a mere matter of form. Claims may be made in deductions from the total arrived at for immediate necessary expenditure to maintain the profit, or to keep the undertaking in a good position generally. The structural valuation of the undertaking Jias little Hearing on the price paid, and is estimated in order to indicate the Capital assets of the concern. It should be mentioned that in addition to the General Acts named at the beginning of this chapter, the sale of gas in Scotland is governed by the Gas Acts (1864) and the Burgks Gas Supply Acts (1876 and 1893). The supply of gas in Scotland is very largely in the hands of the local authori-ties, and in England the counties of Yorkshire, Lancashire and the North generally are much more marked in this respect than the Home and Southern Counties. Whetlier in the hands of Companies or of municipal authorities, however, the in-dustry as a whole is remarkably well managed, and is on a firmer basis now than ever before in its history. Gas for all purposes has ceased to be a convenience, and has become a necessity. THE CHOICE OF A SITE The first preliminary to the erection of a gasworks is the selection of a suitable site. Although this task may appear to be one of extreme simplicity, this is by no means the case, and hasty consideration of the matter may have a lasting influence on the welfare of the undertaking. The more important points to be kept in view may be summarized as follows:— («) Ready access to sea, river, canal or railway. Cartage to and from the works should, as a general principle, be avoided as far as possible, and works having a combination of water, rail and road facilities enjoy an enviable position. This accessibility has a twofold value, viz. : in getting coal and other materials into the works and in the taking away of residuals. Generally, it may be taken that good sea or river access is preferable to rail, more particularly when the undertaking owns its coal ships. With reference to the last mentioned, the actual construction of sidings is a financial matter, depending entirely on the money to be saved balanced against