The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1913-07-25
QUESTIONS MUST Be
ANSWERED HERE At
HEARING AUGUST 4
Light, Heat and Power Com
pany Will Present
Objections.
TURN S EARCHLIGHT
On Local Company to Deter
mine Actual Value of
the Plant.
TURN S EARCHLIGHT

Wnen the puplC service COMMISSION
meets to hear the evidence in the gas
question in Richmond. it will be con-
fronted with some difficult questions.
On August 4, Chairman Duncan of
the commission will come to Richmond
to conduct the hearing, at which time
the representatives of the city will en-
deavor to show why it will be a benefit
to the community for the Allegheny
Gas company to be permitted to bring
natural gas to Richmond On the
other hand, the Richmond Light, Heat
and Power company representatives
will endeavor to show that it will be a
great injustice to the stock and bond
holders of their company for the COM
mission to grant a franchise to COM
peting company, and at the same time
refuse to allow the local company to
charge a price for gas which will not
net a fair return on its investment.
Some Vital Questions.
There are many questions which the
commission must take into considera-
ton.
First-What position will the city be
in if the natural gas should fail?
Second-What effect the granting of
the franchise to 2 competing company
will have on the local company?
Thirds the local company charg-
ing too much for its product?
Fourth-Is the local company carry
ing large Investment account on its
books and trying to earn a profit on
that amount?
All of these questions enter into the
granting of the franchise as the new
law places the commission in the po-
sition of a judge on all matters be-
tween the citizens and the public util-
ity corporation. The commission is
given the right either to raise or
lower rates. If the commission con-
siders that the rates charged by a
company are below what it actually
costs to produce that commodity, then
it may readjust the rates.
To Determine Value.
The Light, Heat and Power COM
pany will have a searchlight turned
on its past conduct, and at the same
time the commission will determine
what the actual value of the present
plant is in order to use this as a
basis of determining what would be a
fair rate for artificial gas.
1t is said that the local company
purchased the plant and equipment
from the former owners at a price
that was far above the actual value of
the property To this amount the COM
pany has added the cost of installing
modern improvement. About four
years ago the company purchased the
property of the Richmond Natural Gas
company at an eXhorbitant price in
order to keep another company from
buying the plant and coming here as
a competitor.
All of this has piled up an enormous
investment account which the COM
pany is now carrying as the value of
the plant, and on which it hopes to
make a profit.
1t is admitted by the representatives
of the local company that even if the
company installed a cheaper process
of making gas it could not afford to
sell the gas at much less than so
of the large distribution cost.
At the time the Light, Heat and
Power company came into Richmond
no one believed that there would be
a public service commission in In
diana which would have the right to
the organization and busi-
ness of the corporation and fix value
on the plant.
Times have changed and now the
Light. Heat and Power company is
placed in the position of paying up for
its past conduct.
There is also a possibility of the
compelling the local COM
pany to make a contract with the Al
legheny Gas company to buy the
natural gas and then let the local
distribute it. This would
save tearing up the streets and at the
same time protect the city in case the
natural gas failed.
The local company has made ar
to put up a hard fight be-
fore the commission to protect the
company from an alleged injustice
which it claims would be heaped upon
1t in case the franchise is granted TO
the other company.
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