The  exceptions  to  these  general  principles  of  population  and
cost  of  output,  as  with  all  principles  of  investment,  must  not  be
overlooked.  For  example,  a  few  of  the  Southern  cities  with  a
very  large  poor  colored  population  will  compare  unfavorably
with  a  New  England  city  of  similar  size.  This  is  especially
evident  where  this  poorer  population  is  scattered  through  vari-
ous sections  of  the  city  and  thus  affects  a  low  return  on  the
main  mileage,  whereas,  if  this  population  is  concentrated,  the
gas  mains  are  more  effectively  used.  To  the  extent  to  which
economy  of  distribution  is  procured  the  latter  handicaps  are
overcome.  But  where  distribution  or  the  character  of  the  popu-
lation does  destroy  the  operation  of  these  principles,  it  is  a  rela-
tively easy  matter  to  discover  the  causes  for  these  differences.
To  the  investor,  the  fact  of  immediate  importance  is  that
very  few  towns  operate  gas  companies  as  a  municipal  enter-
prise. Practically  all  of  the  very  small  non-dividend  companies
are  owned  by  local  interests  and  fostered  by  one  or  more  pub-


JThis  is  also  borne  out  by  the  quotation  cited  from  Mr.  Rufus  C.
Dawes  and  also  by  the  reports  of  the  State  Commissioners  of  Gas  and
Electric  Light  Companies  in  Massachusetts  within  slightly  different
limits.  The  data  for  the  latter  may  be  procured  from  the  Massachusetts
Board  of  Gas  and  Electric  Light  Commissioners,  the  most  complete  and
accurate  of  any  of  the  state  commission  reports.
GAS  COMPANY  BONDS  395

licly  interested  individuals.     Among  the  non-dividend  paying
companies  of  the  higher  population  group,  other  causes  exist.
