ANNUAL ADDRESS OF THE PRESIDENT.

Ernest F. Lloyd.

In considering the address which custom has decreed the President of this Asociation shall make at the Meeting concluding his term of office, it has seemed to me that the idea of withholding the subject from the previous knowledge of the members and its usual reference to a small committee, has been a practice open to some improvement. I hope, therefore, that it may meet with the approval of the Association that this year the address has taken the course of the papers to be presented, and that the Chairman will open it to general discussion. Certainly it has seemed to me fitting that the review of events or the expressed opinions of a responsible officer of the Association should not be allowed to pass without the members having such opportunity fully and promptly.

The year that has passed, although not marked by any unusual advance in production practice, has nevertheless been one of developing progress. Encouraging signs of the healthy activity and alertness of our business are to be found in the increasing employment of technically educated men in the manufacturing and engineering departments and the application of sound and energetic business methods in its commercial branches.

This commercial development has made such rapid strides in the last few years, that it may be looked upon as having been revolutionized. Better appointed offices, greater attention to the legitimate wants of consumers, an effort to anticipate these wants and to create a demand for gas, is manifested now by every company of any pretensions whatever. At the same time there has been a wholesome tendency to distinguish between the different characters of service, to analyze the relative profitableness of consumers, and to thereby make such rates as will increase both the service to the public and the net income of the company. These questions will be found to have had considerable thought devoted to them by those who have prepared subjects for your consideration at this meeting.

I will not therefore occupy your time with a review of matters which will be much better presented to you by the writers of the papers to be read, but rather solicit your attention o some of those features which are apt to escape our attention in the

pressing routine of daily work. future of our Association.

These will crystalize around the

Prehaps, first to be considered should be the effort which has been made to organize a National Association and its present status. The apathy with which this has been received, or the objections which have been directed against it may be taken as evidence that the gas interests of the country do not believe that there is a suitable field for such an organization, or that they fail to perceive their best interests. I incline to the first view. Theoretically the idea of one central body with branches or chapters in the various parts of the country, having at its command large funds for the prosecution of research, for the general protection of its interests and for the compilation of information is unquestionably an attractive proposition and one which originally enlisted my own support. Yet, in the light of more mature consideration, it is extremely doubtful whether such an organization could accomplish more than a little of what it would set out to do. The reasons for this would seem to me to group themselves under two general heads. First, that the scheme of organization does not offer methods intrinsically different from those now obtaining and with regard to which there is a fairly well defined but uncrystalized opinion that they are insufficient. And, secondly, that the magnitude of the undertaking and the distances involved, coupled with the extreme diversity of the interests to be served and the laws under which they operate would make the organization too unwieldy and too remote and impersonal to be effective for the individual member.

Let me attempt to define the general features of the problems before us.

From the technical aspect the installation and equipment of a gas plant is a matter of mechanical engineering. The subsequent operation involves chemical engineering in the production and ordinary trade methods in the sale of the product. Our educational institutions therefore at present largely have in tr curricula the entire range of subjects which should be understood by the well-equipped gas engineer; though unquestionably a consolidation of these into a more concrete course with specific facilities for research would direct more attention to this branch of engineering. That these institutions have not given us more attention lies more with us than with them. A demand would be, as in all other lines, very quickly supplied, and under the State University work supported by the companies of this State, directed by this Association it is developing rapidly.

From the commercial aspect, the public should be educated through a broad and comprehensive policy of publicity through the press and otherwise to a greater knowledge of and familiarity

with our business in its various branches and to viewing in correct perspective the many economic fallacies which assail us and other quasi-public institutions. There is equally the valuable field of the current collection and compilation of the law of quasi-public corporations as it is made, interpreted and molded in the various legislative enacements and the daily decisions of the courts. Yet consideration will, I think, show that these functions should not be undertaken as a personal affair only of the associated officers and employees of the interests affected.

It is a point which must not be overlooked in any discussion of the matter, that in the last few years the character of the representation has undergone a radical change, so much so that all of our associations even on their present footing are now in a transition stage, the future of which is not yet clear. When most of them were founded and for many years thereafter, the members represented wholly independent companies. Today all those of importance save a few are under syndicate control, with many of our brightest men in their employ. These syndicates hold their own private meetings, when entire freedom of speech prevails and every detail of the business of each company is open to comparison with all the others and to the intimate criticism of all the participants. To my mind the ultimate effect of this condition will be the concentration of the work of the large associations upon those subjects of common open interest among the the offices of those syndiates with the few large independent enterprises and the very great development of strictly local or State organizations.

We

This brings us at once to the consideration of the possibilities, scope and value of our Michigan Association. Primarily, I believe, that the Michigan Gas Association should be reserved wholly for Michigan interests. This is not dictated by any feeling of exclusiveness, but rather, that if it would perform the functions which I will endeavor to outline, it would lose weight and influence by reason of the affiliation of any outside interests. We would always welcome fellow gas men, we would be glad to give our little knowledge and receive of their large store. would not tax them and they would not vote. Members removing to activities without the State would thereby pass) into an Honorary Service Class, without dues or vote. I would maintain the existing classes of membership, adding thereto that of the Gas Companies of Michigan. Under such an organization it would be strictly a Michigan Gas Association, composed of the Michigan Gas Companies and Michigan Gas Men. The necessary revenue for its purposes should be derived from individual dues as at present and from the companies represented. Each company should have a voting representation and dues