<9ract, :Qo. 32. 


The Fabian Municipal Program, No. 3, 

E MUNICIPALISAT-ION OF 
THE GAS SUPPLY. 

) -·----


LIGHTING by ga has become a necessity of the life of a great city. 
Nevertheless some persons who advocate the public supply of water 
hesitate to apply the principle of municipalisation to their local gasworks. 
Few of such persons, however, can be aware of the rapidity 
with which the public supply of gas is increasing. Already one-half 
of the gas consumers in the kingdom burn gas which they themselves 
as citizens have made through their local governing bodies; 
excluding London and its neighborhood, the proportion is, indeed, 
over two-thirds. The number of local authorities undertaking the 
gas supply has grown from 148 to 173 in seven years. No public 
authority in the United Kingdom having once municipalised its 
gasworks has ever retraced its steps or reversed its action. 

But London, along with Liverpool and Dublin, Sheffield and 
Bristol, and a few other large towns, still leaves this essentially 
public ervice in the hands of private capitalists. 

These speculators have succeeded in arming themselves with large 
aud far-reaching statutory powers, to the arbitrary and oppressive 
exercise of which the consumer is con tantly liable. Against a powerful 
company the individual has practically no defence. No private corporation 
ought to be entrusted with such authority. It can only be 
safely vested in a representative public body, directly responsible to, 
and therefore capable of being effectively controlled by, public opinion. 

London's gas supply has now fallen, by successive amalgamations, 
into the hands of three colossal companies (in 1855 there were 20), 
whose capital outlay, including past competitive waste and lawyers' 
bills, exceeds Ł14,000,000. On this amount they manage to obtain 
a handsome profit, the annual surplus being nearly 

.\ :IIILLI0:-1 STERT,TNG, 
or over seven per cent. So abundant, indeed, is the profit that 
huge salaries and pensions are paid, and unnecessary renewals 
executed, merely to avoid returning a larger surplus. For, unlike 
the W<tter companies, our gas proprietors are limited by Act of 
Parliament as to their dividends, according to a sliding scale, and 


any exees!! is now partially devoted to a reduction in the price of 
g~t!!. The largest comp"ny paid 12 per cent. for 1891. 

Pa;rticulars for the years ended 31st December, 1889 and 1890. 
(Rlltnrn No. 182 to the House of Commons. Price 3d.) 

1889. 
Gail Light and Coke Co. 
South Metropolitan Co. 
Commercial Co. 
Receipts.
Ł 
~.170,549 
911,172 
321,478 -Expenditure.
Ł 
2,199,426 
707,217 
223,137 -Surplus.
Ł 
971,123 
203,955 
98,341 
Tota,l 4,40~,199 3,129,780 1,273,419 
1890. 
Gas Light aud Coke Co. 
South Metropolitan Co. 
Commercial Co. 
~.429,625 
1,000,662 
341,892 
2,727,380 
842,883 
258,577--702,245 
157,779 
83,315 -Total 
4,772,179 3,828,840 943,339 

Notwithstanding a net profit of nearly three quarters of a million 
sterling, the Gas Light and Coke Company raised its price in 1890 
by 10 per cent., and in December, 1891, by a further 12 per cent. 
(from 2/6 to 3/1 per 1,000 feet), in order to pay a 12 per cent. 
dividend to its ordinary shareholders. This involved an additional 
charge upon two-thirds of London amounting to over half a 
mill ion a year. 

But the gas companies have no legal monopoly; and the County 
Council can· obtain Parliamentary powers to construct a competing 
supply, unless the companies consent to transfer their works on 
equitable terms. The London works could undoubtedly now be 
const.n1eted for much less than the total capital outlay of 
Ł14,270,000: but, assuming the whole of this amount to be reimbursed 
to the shareholders, the interest payable by the Council 
would only be Ł428,000 a year, as compared with Ł1,273,419 paid 
to the share and bond holders for 1889, and as much as Ł1,529,026 
paid them for the year 1888. The average profit for the three years, 
1888-1890, was Ł1,248,595, and the difference between this and the 
intere~~t which would be payable by the London County Council 
amounts to Ł820,595. This um would cover nearly one-half of the 
net expenditure of the London School Board. Even if the shareholders 
were given Ł25,000,000, the present market value of their 
shares, the County Council could effect a saving of half a million 
Rterling. 

In Manchester, besides clearing off the capital cost by a sinking 
fund, the Corporation bas applied about a million of money, the 
profit of its gas works, in aid of the permanent improvement of the 


3 

town. In 1889-90, a net profit of Ł21,994 was mt1de on gas supplied 
at 2/6 per one thousand feet. 

Birmingham, with gas at 2/3 per 1,000 feet, made Ł70,337 profit 
in the same way after paying interest on gas loans. Why should 
not London do the same, and ensure, at the same time, the fair 
treatment of London's ten thousand gas stokers? 

Here is the experience of Bradford : " The Gasworks of this 
Borough," wrote the town clerk in 1890, "belong to the Corporation, 
an..d the profits last year amounted to Ł18,000, equal to about 
4d. in theŁ on the rateable value of Bradford, the price· of the gas 
being 2s. 3d. per thousand feet, with discounts varying from 2! to 
12! per cent.; in addition to which the public lamps are lighted free 
of charge." The cost of gas remains the same in Bradford in the 
present year (1892), while that in London north of the Thames has 
heen raised to 3s. 1cl 

The cost of street lighting in London, which is paid for by the 
ratepayers, is equal to a rate of twopence in the Ł; s® that, in Bradford, 
municipal gas saves the pockets of the ratepayers the equivalent 
of a sixpenny rate. 

The pecuniary profit to be made by completing the municipalisation 
of the gas supply is, however, of less importance tha.B 
obtaining complete control over this essentially public service. The 
thousands of gas-workers ought to be secured fair wages, proper 
hours of \Vork, and adequate protection against accidents. At 
present hut little is done to bring the comforts of gas, either for 
lighting or cooking, within the reach of the poor, and even in 
London only every other house has gas laid on. Little attention 
will be paid to lighting the poorer streets, the public stairways, 
or the slums and alleys of our great cities, so long as every cubic 
foot of gas is jealously charged for by a capitalist company. Our 
gas, moreover, is practically our winter sun, and no private considerations 
ought to be allowed to stand between us and our main 
source of artificial light. Whatever progress may be made with 
electric lighting, the use of gas for heating and cooking purposes will 

remain, and, indeed, expeds tell us the oonsumption of gas must 
inevitably increase. We need not fear that our municipal gasworks 
will become obsolete for many generations to come. 

Hence INSIST ON THE MUNICIPALISATION OF THE 
GAS SUPPLY. 

0. S·uNDRI~ef, Printer, 7 & U Fin,bm-y ~treet, E.~. 

FABIAN SOCIETY. 
THE FABIAN ~mUlETY consists of Socialists. A statement 
of its Principles, Rules, Conditions of Membership, etc., a list 
of lecturers, with their lectures and terms, and the following pub-
lications, can be obtained from 
The Secretary, at the Fabian Office, 276 Strand, London, W.C. 
"FABIAN ESSAYS IN SOCIALISM." 
(22nd Thousand.) 
A full exposition of modern English Socialism in its latest and maturest phase. 
Library Edition, 6s. ; or, di,rQct from the Secretary for Cash, 4 /6 (postage 4id.) 
Cheap Edition, Paper cover, 1s. ; ditto, plain cloth, 2s. At all booksellers 
or post free from the Secretary for 1s. and 2s. respectively. 
FABIAN TRACTS. 
No. 1.-Why are the Many Poor P Pnce 6 for 1d.; u. per 100. 
No. 5.-Facts for Socialists. A survey of the distribution of income and 
the condition of classes in England, gathered from official returns, and from the 
works of economists and statisticians. 35th thousand. 16 pp., !d.; or 9d. per doz. 
No. 7.-Capital and Land. A similar survey of the distribution of pro-
perty, with a criticism of the distinction sometimes set up between Land r.tHJ Caf>ioal 
as in . trument~ of production. 3rd edn.; 15th thousand. 16 pp., Id.; or 9~· per tloz. 
No. B.-Facts for Londoners. 56 pp., 6d.; or 416 per doz. 
No. 9.-An Eight HaUl'S Bill. Full notes explain the Trade Option 
clause and precedents on which the Bill is founded. A list of literature deal in~ with 
the hours of labor is appended. 20th thousand. 16 pp., Id.; or 9d. per doz. 
No. 10.-Figures for Londoners. 40th thous 4 pp., 6 for I d.; Is. per too. 
No. 11.-The Workers' Political Programme fully explains the politics 
of to-day from the working class point of view, and gives questions to put to Parlia-
mentary candidates. 20th thou,and . 20 pp., Id. : or 9d. per doz. 
No. 12.-Practicable Land Nationalization. A brief statement of prac-
tical proposals for immed iate reform. 20th thousand. 4 pp., 6 for !d.; or Is. per 100. 
No. 13.-What Soc•alism Is. 8oth thousand. 4 pp., 6 for Id.; or Is. per 100. 
No. 14.-The New Reform Bill. A draft Act of Parliament providing for 
Adult SuiTrage, Payment of l'vlcmbers and their election expen es, Second Ballot. and 
a thorough system of Registration. 15th thousa nd. 20 pp. Id.; or 9d. per doz. 
No. 11S.-English Progress towards Social Democracy. Id.; 9d . do1. 
No. 16.-A Plea for an Eight Hours Bill. 4 pp., 6 for I d.; rs. per too. 
No. 17.-Reform of the Poor Law. 20 pp., Jd.; 9d. per doz. 
No. 18.-Facts for Bristol. On the same Jines as Tract No. 8. I5 pp., 
td. each ; or 9d. per doz. 
No. 19.-What the Farm Laborer wants. 4 pp., 6 fnr td. ; or I/-per 100. 
No. 20.-Questions for Poor Law Guardians. 4 pp., 6 for Jd. ; or 
I/-per 100. 
No. 21.-Questions for London Vestrymen. 4<flp.,6for 1d.; or Is. per 100. 
No. 22 -The Truth about Leasehold Enfranchisement, gives reasons 
why Socialists oppose the proposal. 4 pp., 6 for rd.; or Is. per 100. 
No. 23.-'l'he Case for an Eight Hours Bill. 16 pp., rd. each; 9d. a tlo1en, 
No. 24.-Questtons for Parliamentary Candidates. 6for Jd.; rs. per too 
No. 25.-Questions for School Board Candidates. 
No. 26.-Qu stivns for L ondon County Councillora. 
No. 27. -Qu... stJons for Town Councillors. ,. , 
No. 28.-Qucstior·s for Countr Councillors. , , 
N o 29.-Wh<~.t to Read. A L1st of Books for :-ocial Reformers. Includes 
all the best books on Economics, Socialism, Labor Movements, Poverty, &c., 
wioh suggc,ted courses of read in~. 32 pp., 3d. each, or 2/J per doz. 
No. 30.-The Unearned Increment. 
No 31 -London's Heritage in the City Guilda. 
No. 32.-Municipalisation of the Gas Supply.
No. 83 -Municipalisation of Tramways.
No. 34.-London's Water Tribute. 
No 3G.-Municipallsation of the Docks. 
No. 36.-The Scandal of London's Markets. 
No. 37.-A Labor Policy for Public Authorities. 
Noa. 80 to 87 form tM Fabian Municipal Program. The 8 for ld., or ls. per 100. 
~The set post free for two shilUnga. ..... 
FABIAN SOCIETY. 
THE FABIAN ~mUlETY consists of Socialists. A statement 
of its Principles, Rules, Conditions of Membership, etc., a list 
of lecturers, with their lectures and terms, and the following pub-
lications, can be obtained from 
The Secretary, at the Fabian Office, 276 Strand, London, W.C. 
"FABIAN ESSAYS IN SOCIALISM." 
(22nd Thousand.) 
A full exposition of modern English Socialism in its latest and maturest phase. 
Library Edition, 6s. ; or, di,rQct from the Secretary for Cash, 4 /6 (postage 4id.) 
Cheap Edition, Paper cover, 1s. ; ditto, plain cloth, 2s. At all booksellers 
or post free from the Secretary for 1s. and 2s. respectively. 
FABIAN TRACTS. 
No. 1.-Why are the Many Poor P Pnce 6 for 1d.; u. per 100. 
No. 5.-Facts for Socialists. A survey of the distribution of income and 
the condition of classes in England, gathered from official returns, and from the 
works of economists and statisticians. 35th thousand. 16 pp., !d.; or 9d. per doz. 
No. 7.-Capital and Land. A similar survey of the distribution of pro-
perty, with a criticism of the distinction sometimes set up between Land r.tHJ Caf>ioal 
as in . trument~ of production. 3rd edn.; 15th thousand. 16 pp., Id.; or 9~· per tloz. 
No. B.-Facts for Londoners. 56 pp., 6d.; or 416 per doz. 
No. 9.-An Eight HaUl'S Bill. Full notes explain the Trade Option 
clause and precedents on which the Bill is founded. A list of literature deal in~ with 
the hours of labor is appended. 20th thousand. 16 pp., Id.; or 9d. per doz. 
No. 10.-Figures for Londoners. 40th thous 4 pp., 6 for I d.; Is. per too. 
No. 11.-The Workers' Political Programme fully explains the politics 
of to-day from the working class point of view, and gives questions to put to Parlia-
mentary candidates. 20th thou,and . 20 pp., Id. : or 9d. per doz. 
No. 12.-Practicable Land Nationalization. A brief statement of prac-
tical proposals for immed iate reform. 20th thousand. 4 pp., 6 for !d.; or Is. per 100. 
No. 13.-What Soc•alism Is. 8oth thousand. 4 pp., 6 for Id.; or Is. per 100. 
No. 14.-The New Reform Bill. A draft Act of Parliament providing for 
Adult SuiTrage, Payment of l'vlcmbers and their election expen es, Second Ballot. and 
a thorough system of Registration. 15th thousa nd. 20 pp. Id.; or 9d. per doz. 
No. 11S.-English Progress towards Social Democracy. Id.; 9d . do1. 
No. 16.-A Plea for an Eight Hours Bill. 4 pp., 6 for I d.; rs. per too. 
No. 17.-Reform of the Poor Law. 20 pp., Jd.; 9d. per doz. 
No. 18.-Facts for Bristol. On the same Jines as Tract No. 8. I5 pp., 
td. each ; or 9d. per doz. 
No. 19.-What the Farm Laborer wants. 4 pp., 6 fnr td. ; or I/-per 100. 
No. 20.-Questions for Poor Law Guardians. 4 pp., 6 for Jd. ; or 
I/-per 100. 
No. 21.-Questions for London Vestrymen. 4<flp.,6for 1d.; or Is. per 100. 
No. 22 -The Truth about Leasehold Enfranchisement, gives reasons 
why Socialists oppose the proposal. 4 pp., 6 for rd.; or Is. per 100. 
No. 23.-'l'he Case for an Eight Hours Bill. 16 pp., rd. each; 9d. a tlo1en, 
No. 24.-Questtons for Parliamentary Candidates. 6for Jd.; rs. per too 
No. 25.-Questions for School Board Candidates. 
No. 26.-Qu stivns for L ondon County Councillora. 
No. 27. -Qu... stJons for Town Councillors. ,. , 
No. 28.-Qucstior·s for Countr Councillors. , , 
N o 29.-Wh<~.t to Read. A L1st of Books for :-ocial Reformers. Includes 
all the best books on Economics, Socialism, Labor Movements, Poverty, &c., 
wioh suggc,ted courses of read in~. 32 pp., 3d. each, or 2/J per doz. 
No. 30.-The Unearned Increment. 
No 31 -London's Heritage in the City Guilda. 
No. 32.-Municipalisation of the Gas Supply.
No. 83 -Municipalisation of Tramways.
No. 34.-London's Water Tribute. 
No 3G.-Municipallsation of the Docks. 
No. 36.-The Scandal of London's Markets. 
No. 37.-A Labor Policy for Public Authorities. 
Noa. 80 to 87 form tM Fabian Municipal Program. The 8 for ld., or ls. per 100. 
~The set post free for two shilUnga. .....