The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1913-08-06
HARD FIGHT Ended
SPLENDID VICTORY
FOR THE CITIZENS I.
Report of L., III. & P. Shows
Failure TO Get Franchise
Meant Ruin.
FORCED TO LINE UP
100000 in Mortgage Bonds
and Notes of Company
Due Next Year.
FORCED TO LINE UP

The action or the Public Service
commission yesterday in approving the
franchise for 40 cent gas in Richmond
is the last chapter in the fight for
cheaper gas.
The successful contamination of the
negotiations between the L. III. and p.
company and the Allegheny Company
will mean an annual saving to the
present consumers of artificial gas of
over $4,000 per year. At the present
time the Richmond Light, Heat and
Power company supplies about 5000
consumers, whose average annual gas
bill is $500. Under the new rate. 40
cents, the average annual bill will be
half that amount where the same
amount of natural gas is used as con-
sumed now under the artificial gas
service. OF course, under the cheaper
gas rates some consumers will use nat.
ural gas in place of coal in furnaces
and crate fireplaces and stoves. This
increase in the use of gas, however.
will not affect the pressure. il Is be-
lieved, if reports from Springfield. o..
where natural gas is now being used.
are authentic.
All Greatly Pleased.
City Attorney William A. Bond and
the members of the public service cor
poration committee of the Commercial
Club are greatly pleased over the out
come of the fight, which in the short
space of ten weeks. secured such q
great saving in the fuel bills of Rich
mond citizens.
From the beginning of the negotia-
tions the Light, Heat and Power COM
pany was at the mercy of the city and
the Allegheny company which con-
trolls the only supply of natural gas
accessible to this territory.
The whole affair was pushed with
such rapidity that before the Light,
Heat and Power company realized
what had happened it was tied hand
and foot and given the choice of ac-
:, cepting such terms as il could get or
face financial ruin. II chose the former.
1t had never been known at what
price the local company valued It's
plant and equipment in Richmond un-
til ]. B. Wharton on the witness stand
on Tuesday testified that it was some
thing over a million dollars.
company's Valuation.
Yesterday a representative of the
Palladium secured from the Public
Service commission at indianapolis a
copy of the valuation and cost report
of the l.. III. and p. company, which
every public service corporation is
compelled 10 file with the commits
sion.
This report places the valuation OF
s1.110.S1343, which includes both the
gas and electric light plants.
The gas plant is valued at about ss
per cent of the total.
Last Monday. after IL was thought
the troublesome question had been
settled. one of the hardest fights came
when city attorney Bond made a sue
cessful effort to compel the local COM
pany TO make a statement before the
commission that IL il continued the
artificial gas plant in Richmond for
emergency purposes the company
would not ask the commission to in
clude all or any part of this business
| in the valuation of the natural gas
plant.
This point was finally agreed to by
the local company and in its statement
| to the commission yesterday IL ag9eed
that If IL continued the artificial plant
il would do so at its own option and
without obligation on the part of the
city.
A Determined Stand.
The city attorney was determined in
his stand for this point, as he felt
that now was the time TO get the COM
pany to declare itself on the most VI
tai question of the whole affair. IL this
declaration had not been made there
was danger of the company going be-
fore the commission eventually au1
arguing that If IL must continue the
present artificial gas plant for the
benefit of the citizens the commission
should allow that valuation to be in
cfuded in the valuation of the natural
gas plant and therefore, in order to
earn a reasonable amount on such an
investment it should be given the right
to raise natural gas rates. The corr
mission might have been poweriess to
do anything but grant the request, il IL
followed precedents established in
other states.
Chairman Duncan stated yesterday
after the franchise had been approved
that in his opinion Richmond would
not have gotten natural gas il the two
companies had not reached an agree
ment. as the commission could not
have granted franchise to a compet-
ing company after the local company
lContinued on Page Four)