The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1913-11-22
BOARD PAVES WAY
FOR GAS DECISION
ON DEPOSITS RULE
City Officials Say Consum-
ers Not Compelled to
Give Company S5.
KRICK WILL EXPLAIN
Representative of LOga n
Company to Appear Be-
fore Board Monday.
KRICK WILL EXPLAIN

Action paving the way to take before
the state Public Utilities Commission
the question of the authority OF the
Richmond Light, Heat and Power
company. in requiring deposits for
natural gas service. was taken today
by the board of public works.
After that body had heard state
ment of facts made by Attorney Bond,
the declaration was made that the
board had never approved of the com
pany's deposit rule, or any of its 9th
er rules, as required in the cOmpany's
franchise before any rule can become
effective, and that 1t has no intention
of sanctionlng such action on the com
pany's part. Mr.. Bond said when =
first received the company's rules he
struck out the one referring to for
feits and had sent the copy back to the
company.
The board then unanimously adopt
ed the mayors motion that a formal
announcement be made to the public
in the press that the deposit rule is in
valid and if the patrons of the com
panY chose to ignore 1t they have the
right to do so.
The board in taking this action, did
authority itself to compel the Light,
Heat & Power company to discontinue
the enforcement of the objectional
rule and that such authority rests with
the Public Utilities Commission, as
pointed out by the Palladium yester-
day. If the company persists in requir
ing deposits of all montreal estate hold
ing patrons to post guarantees for nat
ural gas service the board will ask the
commission to bring the local corpora
tiOn to time
Has Had Deposit Rule.
1t was also brought to light at the
board meeting today that the Light,
Heat Power company has sliding
scale of deposits. ranging from IS up,
! but that it has made an effort to shield
| this fact in the list of natural gas ser
vice rules, published on the back of all
application contracts
! Patrons not owning real estate and
! who use gas for a cooking range or hot
plate, or to illuminate their homes or
! for water heaters are required to de-
posit S5 with the company If in addi-
/ ton to such service such patrons have
one or two heating stoves the deposit
required is SO. If heating stoves are
not used but furnace is the deposit is
also $40, providing the house has six
or less rooms. If gas is used in fur
! naces in houses of more than six
rooms and not more than ten. the re-
quired deposit is SIS. Special rates are
made for houses of more than ten
! rooms.
! The companys deposit rule. howev-
! er, merely provides the following re-
! quirements:
In case an applicant for gas is not
! considered financially responsible the
company reserves the right to require
I a reasonable safe guaranty, or cash
deposit equalllng to the average gas
Dill Tor six weeks period, upon which
interest at the rate of per cent per
annum, payable annually will be paid
for gas to be delivered and other ser.
vices rendered, which deposit and 9th.
er unpaid accumulated interest there
on will be refunded when the delivery
OF gas has been discontinued and upon
payment of all bills due the company
and surrender of the receipt therefor
Ayers Company Is Fair
! t. X. krick of the Logan Natural
Gas company. from which corporation
! the Light, eHat and Power company
secures its supply, was in the city yes
terday and Mr.. Bond told the board
that he informed Mr.. Krick the CITY
would never submit to the inforce
ment of the deposit rule The city at
torney then stated that Krick told him
he believed the board could be con
vinced that the local company's action
was fair and reasonable and that he
| would like to have the privilege of ap
pearing before the board Monday
Bond told him the board would havt
no objections to him doing so.
Mr.. Bond, in outlining the situation
which has arisen over the deposit rule
the Light. Heats and Power compan,
informed the board that the state com
mission had in a few cases REQUIRED
public utilities companies to require
reasonable deposits from certain class
es of patrons, but he said he believed
the commission could be easily con
vinced that the deposit rule of the 10
cal company was unfair and entirely
too arbitrary, and established in def
ance Of the company's contract witt
the city.
The city attorney said he appreciat
ed the fact that a reasonable deposit
TO protect the company against IRE
sponslble patrons would be fair. but he
said he was most emphatically opposed
TO any plan Of the company to secure
protection from such people at the ex
!, pense OF trustworthy people who die
not own real estate He also pointed
out that the company had even gone
to the extreme OF requiring some rea
estate owners to file guarantees O.
good faith
Too Discriminatory.
The company can in a reasona biz
manner require any doubtful patron Il
make reasOna bic deposit. but for it II
divide its patrons into Two broad elias
sifcauOns is entirely too discrimina
tory" said the city attorney.
Mayor Zimmerman said he would
like TO know if he had the right to in
troduce a motion suggesting to the
patrons of the Light, Heat and Powe1
company that if the company persist
ed in requiring a deposit for narura
gas that they cease using the electric
ity OF the company With q smile Cit!
Attorney Bond informed the mayo
that he had such authority but sug
gested that it was not necessary TO
him to do SO as the patrons OF tbs