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THE PRESIDENT: You have heard the report of the Treasurer, and your applause indicates that the members of the Michigan Gas Association believe that our Treasurer missed his calling when he engaged in the gas business-he should have run a steamboat excursion business.

On motion of Mr. Steinwedell the report was adopted.

THE PRESIDENT: The next on the order of business is the appointment of a committee on nominations for officers for the next year. I will appoint as such a committee Mr. D. H. Frazer, Battle Creek, Chairman; Mr. Carroll Collins, of Marshall and Mr. William Hellen of Kalamazoo.

I notice that there is also to be appointed a Committee on Resolutions and I would like to appoint Mr. Irvin Butterworth and Col. E. G. Pratt as a committee on resolutions.

The next matter is the appointment of a committee on time and place of next meeting. I will appoint W. E. Steinwedell of Cleveland, Chairman, with Henry Schutt of Buffalo and Chas. Wright of Grand Haven.

Mr. Batten reported that he would present the report of the committee on Gas Fellowship on Thursday morning, just before Mr. Casson's talk.

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THE PRESIDENT: I should like to say just a few words with regard to Mr. Casson's address. His address is going to start on time tomorrow. His time is somewhat limited, and we propose to devote that entire session to his address. Doubtless many of you know somehing of Mr. Casson's writing and of his work. He is unquestionably a live wire and anybody who misses any of his remarks will regret it. To read what he has to say is a good thing, but you don't get it as you do when his personality is present in the meeting. Now, we want to have this room full, and we will be very glad to have you bring any of your friends who will be interested in a real live talk in putting gas over.

Mr. Henry W. Douglas, vice-president, then took the chair while Mr. Blauvelt read his Presidential Address:

PRESIDENT BLAUVELT: Mr. Chairman and gentlemen of the Michigan Gas Association: Not being connected with a public service corporation and having had no such connection for a matter of about eighteen years, I felt myself in a peculiarly fit condition to discuss the public relations of a public service corporation. Perhaps the fact that I am detached from that work directly may make me more ignorant of the real relations than I otherwise would be. On the other hand, perhaps it enables me to see some things a little bit clearer than I might see them if I had the point of view of the men who have the serious problems which confront most of the members of this association.

PRESIDENTIAL ADDRESS

MICHIGAN GAS ASSOCIATION, 1913.

Warren S. Blauvelt.

The objects of the Michigan Gas Association are, first: "the promotion of knowledge in all matters relating to the gas industry"; second: "the establishment and maintenance of a spirit of fraternity between members, by social intercourse and by free exchange of information and ideas"; and third: "the establishment of more cordial and friendly relations between the manufacturers of gas and their patrons, based upon mutuality of interest."

In the promotion of knowledge, this Association has a record of which it may well be proud. The research work done at Michigan University under the auspices of this Association, has contributed not a little to the sum total of human knowledge in its particular field. The various papers presented at the twenty-one annual meetings have been of great educational value.

All who have had the privilege of attending regularly our annual meetings, will agree that they have been completely successful in promoting the spirit of fraternity among our members. Our recollections of past meetings are always pleasant, and we look forward to future meetings with high hopes which are never disappointed. We return to our various fields of labor with renewed ability to cope with our varied problems, and inspired with a high sense of our responsibilities, not only to the owners of the properties by whom we are employed, but also to the communities which we serve.

As the years go by, it is noticeable that the ethical standards for the conduct of our business are constantly being advanced; we feel more keenly our duty toward our customers, and we

strive more earnestly to improve the quality and reduce the cost of our service. The Michigan Gas Association has, I believe, been a considerable factor in this advance. Unquestionably, we

have succeeded to some extent in promoting friendly relations between manufacturers of gas and their patrons, but there still remains much to be done before we can realize any where near the ideal relations which should exist between purveyors and actual or prospective consumers of gas. It is, I believe, in this direction, the promotion of cordial relations between our companies and the communities which they serve, that the greatest possibilities exist for increasing the value of this organization, not only to the individual members and to the corporations represented, but also in a very real sense, to the communities which we serve.

The basis of trade is mutual advantage; the only possibility for cordial relations between the two parties engaging in trade is that each shall feel that he is having his desires gratified with less expenditure of effort, of goods which represent effort, or of money which measures the value of goods and of labor, than he could secure in any other way. In the gas business there are four groups of traders, each of which should be convinced that it is securing the maximum satisfaction possible in exchange for whatever it gives to the other group or groups with which it has dealings.

These groups are: First, the general public, which wishes to have available for use at all times, gas of uniform and high quality, delivered at approximately a uniform pressure at the lowest possible price. Second, the investors, who wish to secure the largest possible returns consistent with safety, from the use of their money in the construction of the plant. Third, the great mass of employes, who wish to secure the highest possible wages, to work under the best possible conditions and to be given opportunities for advancement whenever possible. Fourth, the business organizers, managers and engineers, whose functions are to see opportunities for the establishment of gas works, secure the necessary capital for their construction, direct the designing and constructing of the plant, outline general business policies, organize and direct the employes. In general, the ideal confronting the members of this group is to so organize and conduct the

business as to keep customers satisfied with the quality of the services they receive at the price charged; to make the investors feel satisfied with the returns received from, and with the security of, their investment; and to keep the employes so well satisfied with their wages, the conditions under which they work, and the opportunities for advancement, that they are willing at all times to put forth their best efforts to do their work in harmony with the policies of the company. The rewards which this group desires are, first, an income in salary or share in profits, or in a combination of the two, sufficient to attract to the gas industry men of the exceptional type necessary to perform even with moderate success the functions outlined; second, and with the greatest men in this group, of far higher importance than financial returns, the opportunity to develop their personalities in the performance of great and exceptional services to each of the other groups directly, and indirectly to the world at large.

At first glance the interests of these various groups appear to conflict; can they be harmonized, and if so, how? These are the questions which confront the members of the fourth group mentioned the business organizers, managers, engineers, etc.: As the membership of our Association is largely made up from this group, we have a particular interest in considering these questions. Our success in our chosen field depends largely on the extent to which we are able to harmonize these apparently conflicting interests.

Lack of harmony is generally traceable to ignorance; where honest people disagree as to facts, the cause of the difference of opinion is invariably the lack of definite knowledge. Where ignorance prevails, differences of opinion naturally follow; when knowledge supplants ignorance in any realm, harmony of opinion results. Men no longer dispute about the general form of the earth; physicians agree that yellow fever is transmitted by the mosquito. Are there facts now known or discoverable, the general knowledge of which would produce that desired harmony between the seller and the consumer of gas which is one of the avowed objects of this Association?

With regard to certain relations between the various interested groups, there can be no difference of opinion among well

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