The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1912-04-09
Discrimination in Favor of
the Large Consumers Is
Regarded as an Evil by
the Committee.
CITY STREET CARS
RECEIVED SCORING
Action Of Council in Deciding
to First Settle the Water
Question, Then the Gas
Problem, Is Praised.

Declaring that the standard of pro-
fits of public service corporations in
this city is unreasonably high, the
Commercial club committee on public
service corporations, in it's report sub
mitted at the regular meeting COM
mended the action of the city council
in its resolution to take no action up
on the proposed gas franchise until
the water works problem has been de-
finitely settled The report says that
within the next few years a change in
the laws and constitution of the state
may permit the condemnation and ac-
quisition of public utility and that
its operation by the municipality
would benefit all citizens.
The committee, in it's report, dwells
at length upon the proposition which
the Light Heat and Power company
has submitted to the city, through it's
attorney, John d. Beasley, of Terre
Haute. 1t says that many of the evils
which have attended the growth of
consolidated corporations have been
brought about by the discrimination
the committee believes that the in
terest of the laboring man should not
be subordinated to that OF the large
consumers.
Report of Committee.
Following its report ON the gas
franchise the committee made re-
port of the city street cars and in
which the cars now in use were strong
ly condemned, the report saying that
the cars are not clean or sanitary, in
adequate in size, unsightly, leaky and
not in keeping with the progress of
the city
The report, in full, follows:
Your committee on public service
corporations respectfully reports as
follows.
I'VE have considered the PROPOSE
tion for new gas franchise solicited
by the Light, Heat and Power COM
pany, through it's attorney John d.
Beasey, for 25 years from the present
time at a net rate of 81 with ten per
cent reduction for cash payments for
domestic purposes, and for other pur-
poses fifteen per cent reduction, and
where the consumption exceeds 5000
feet twenty-per cent reduction. This
discrimination in favor of the large
consumers as against other users
seems to us to be opposed to the best
interests of the community, which de-
mands an equal price rate for all do
mestic consumers and that the rate
paid by the workman's family for de-
.mestic use shall not be higher than
that paid by another. Many of the evils
which have attended the growth of
consolidated corporations have come
by the discrimination in favor of the
large consumer and as this is a public
corporation we insist that the interest
of the poor for domestic consumption
should not be subordinated to that of
the large consumers. If the Light,
Heat and Power company can afford to
furnish any gas for IS cents 1000 to
any. it ought to be furnished to all our
citizens upon those terms. Their of
fer shows that there is profit in that
rate and the gas company should not
be permitted to extract further prof
its from those least able 10 pay the
higher rate.
A Minimum Rate.
Another provision is that there
should be charged minimum rate of
fifty cents from each consumer even
If he has not used anything. This is an
increase over present minimum charg-
es and tends to discourage economy
in the use of gas and also acts as
prejudicial to the smaller consumer
whose rights ought to be protected by
the city government.
"Your committee believes that the
net rate of ninety cents proposed for
all our domestic consumers is under
present conditions unreasonably high
and that the city ought not to be
tempted by proposition TO reduce the
present still more oppressive rate of
ST to ninety cents for the three years
still uneXpired, and to grant a new
franchise at this unreasonable rate
binding the city for twenty-five years
to pay an amount which is far beyond
what is necessary to give to the COM
pany fair return on the capital in
vested The bureau or municipal re-
search has derived from the expert
knowledge of consulting engineer
certain information as to the cost of
gas that il can be produced at an ay-
erage total cost, including material,
labor, distribution, management, tax
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