Los Angeles herald., 1906-02-22
FIXES PRICE OF
PUBLIC UTILITIES
COUNCIL PLACES PRICE OF GAS
AT 85 CENTS
New Electric Rates In Line With What
Three Companies Have Charged.
To BE Effective
July I

Gas, S5 cents a 1000 cubic feet; elec-
trio light, II cents kilowatt hour;
power. 10 cents q kilowatt hour.
These are the prices that were yes
terday fixed by the committee of the
whole of the city council. The ques-
tion of fixing rates for telephones will
be considered at another meeting of the
committee to be held Saturday morning
at 10 o'clock.
Through the rates fixed yesterday
the Peoples Gas company, formerly
the Lowe Gas company, is the only
corporation that is made to suffer. Ac-
cording to the statements of Council
man Smith when he made his motion
fixing the rates, he didn't care very
much whether or not this company
suffers a little, as it has constantly
defed the city ordinances regulating
the tearing up of streets for the laying
of gas mains and has steadily refused
to pay the license fees assessed against
1t.
In Arrears for Fees
According to Mr.. Smith, this COM
pany now is $2500 In arrears for license
fees, while the Los Angeles Gas and
Electric company pays ali these fees
without murmur as soon as they are
due.
In addition to this, Mr.. Smith said.
the property of the Peoples Gas COM
pany is outside the city and the city
receives no taxation benefits from 1t
as a consequence, while this company
gets its entire revenue from Los Ange-
les taxpayers.
This company now charges 81 a 1000
cubic feet for its product, but unless
the action of the council in fixing rates
is declared invalid by the courts 1t
will have to sell its product for So
cents after July 1 or be in violation of
the public utility ordinance.
This company evidently foresaw
what was coming from the council, for
It submitted three statements, two
supplementary to the one which it filed
with the clerk during the last day of
January as required by law, and in
each of the three statements 1T pleaded
with the council TO not reduce its
rates, for 1t had not as many patrons
as it's competitor and it needed the
money.
Little Difference in Quality
These statements all contended that
although 1T was asking more money
for it's product than its competitor the
quality of gas was so much better that
1t was easily worth the price.
Gas Inspector Jordan yesterday told
the council that from his examination
he could find but little difference in the
quality of gas furnished by the two
companies.
The rate fixed for electric light and
power is the same as that now charged
by all three lighting companies and is
considered a fair price by the council.
These lighting companies recently vol
UNFAIRLY reduced their prices to IL cents
from 15 cents and declared in their
statements that 1t had entailed a loss
of a third of their income with no re-
duction in expenses
Home Franchise Blocks
No action was taken on telephone
rates, as the franchise of the Home
Telephone company proved something
of a stumbling block to the council
and 1t was turned over to the city at
torney to wrestle with.
In it's franchise the rates for the
Home company's service are fixed at
50 a month for residence phones and
$5 month for business telephones.
The Sunset operates under an old fran
chise, granted 1t back in the 'S0s, and
no prices are fixed, but this company
charges So month for residence
phones and $S month for business
phones. Councilman Smith believes
that the Sunset service is worth the
extra money, as this company has
long distance connections that the
Home has not and this frequently is of
value to business men. Acting on this
theory the council started to fix the
phone rates at $S month for business
purposes, but the question arose as to
whether the Home company could
charge that price If 1t was fixed.