The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1913-08-05
PLANT VALUATION
CAUSED SQUABBLE
BEFORE CHAIRMAN
City Finally Wins Out on
Fight TO Prevent Chance
Of Rate Increase.
DUNCAN HEARD CASE
Case Will Be Brought Before
Commission At lndianap
oils Again Today.

The Richmond Light, Heat and Pow
er company is claiming valuation on
its electrical and gas plants in Rich
mond of something over a million dol
lars.
This statement was made yesterday
by J. B Wharton. manager of the local
plant, on the witness stand before
Chairman Duncan of the commission.
Mr.. Wharton did not have the exact
figures but claimed that the company's g
capital account, or plant and equip
ment account, would total over a mil
lion dollars. $500, 100000 of which was
invested in the gas plant and the bal
ance in the electrical plant.
In reply to the question as to what
price was paid for the plant originally.
or at what price the securities changed
hands MIR. Wharton answered that he
did not know.
"StS
1t has been generally supposed that
the local company would claim a valu-
alton of from 100000 to ss0O,O0O. but
when it raised this. figure to over a
million it created some comment.
The city attorney and the commit
tee of the Comercial Club have antici-
pated that in case the local company
secured the natural gas franchise IL
would eventually want to still further
enlarge the valuation of the entire
plant in order to furnish an argument
for raising rates on natural gas we'll
above the maximum of 40 cents, as
provided in the franchise.
The city attorney yesterday made a
firm stand for the company's declara-
tion before the commission that il
would not seek to figure in artificial
plant valuation as a part of the total
valuation, and most of the afternoon
was consumed arguing the matter be-
fore Chairman Duncan.
Reached Agreement.
Late last night the city attorney and
the representatives of the two gas
companies agreed on a statement
which will be prepared and presented
to the Public Service commission AT
Indianapolis today.
The statement in substance included
what the city attorney had stood out
for.
Under the terms of the agreement
it is optional with the company wheth-
er or not its artificial plant will be
kept in readiness for use in the event
the natural gas supply is exhausted.
The matter of the construction bor.i
was also taken up and all parties
agreed to a form of bond which would
protect the city and insure a supply of
natural gas to all citizens on or be-
fore January 1st, 1914.
The local company is claiming that
as there will be a great amount of
work in making the change il cannot
be done inside of four months, but il
agrees to push the work with all pos
sible diligence.
The Allegheny Company has agreed
to lay the supply line from the main
line to the city limits and accept %
cent for each 1000 cubic feet of gas
used There were two propositions of
fered to the local company, one of Il
cents and the local company lay down
the supply main, the other a % cent
rate and the piping at the expense OF
the Allegheny company.
Duncan Gives Tip.
Chairman Duncan told the represen-
tatives of the city and the gas COM
panies yesterday afternoon that they
should get together on some sore of a
proposition and then present the mat
ter TO the commission. He said that
each side must give and take or the
city would lose the chance of getting q
cheaper supply of gas.
Mr.. Duncan said, I'VE cannot des-
troy the plant here and therefore it
would be best for you to get together
as soon as possible in order to secure
cheaper gas The commission will not
see the city imposed upon"
The city attorney. representatives
of the gas companies and some of the
members of the Commercial Club COM
mittee went to Indianapolis today to
lay the matter before he commission,
with the amended statement.