The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1913-06-20
If Not L., II. & P, If 1t Sc.
cured Natural Gas, Could
Dictate Local Rates.
LEGAL POINT is UP
If Franchise Is Void Can the
Company Secure Anoth-
er One From City?

If the Richmond Light. Heat
& Power company successfully
negotiates a contract for natural
gas, will it have the right to dis
tribute the commodity?
City Attorney Bond holds that
under existing conditions it
would not. He asserts the fran
chise of the old Richmond Nat
ural Gas company, which was
purchased by the Light, Heat &
Power company, is null and void.
Other attorneys agree with him.
Attorneys for the Light. Heat
& Power company, however.
state that there is legal point
involved as to whether the con-
tract of the defunct Richmond
Natural Gas company has ex-
pired.
Has No Maximum Rate Clause.
Should it be determined that this
franchise is still in operation. Il has
been pointed out. the Light. Heat and
Power company could establish any
rates for the commodity il desired, for
there is no provision in the franchise
which establishes a maximum rate.
When the Richmond Natural Gas
company was first organized it estab-
lished a rate of 1914 cents. and in
turn the rate was advanced to 15 cents,
221s cents and, finally, SO cents.
If the Light. Heat and Power COM
pany has to secure a new contract
from the city before il can sell natur-
al gas il is known that the officials
of the company fully realize that they
will have a difficult job on their
hands. at least under the present city
administration. which is openly hostile
to the company because Of it's competi-
ton with the municipal light plant.
Situation 10 Unchanged.
There is nothing new In the natural
gas situation" stated Manager j. b.
Wharton of the Light. Heat and Pow
er company today. but expect there
will be important developments not la
ter than Monday. That is all can say
now"
Mr.. Wharton was displeased with
the statement made by President 8. Z.
Swayne of the Commercial club, that
he suspected IL the Light. Heat and
Power company secured the contract
for furnishing natural gas the rates
would be higher than those provided
in the contract submitted by the Allie
gheny Gas company.
Manager Wharton emphatically stat
ed that 40 cents would be absolutely
the maximum rate for natural gas In
the event his company supplies the
commodity.
10 II a Case Of Hold up7"
Among those who have followed the
various phases of the questions aris-
ing from the proposal TO have natural
gas piped to Richmond from the West
Virginia fields there Is q shrewd sus-
picion the Allegheny Gas company is
not sincere in its efforts to secure .
franchise in this city.
The Light, Heat and Power com-
pany officials have admitted that that
company had been negotiating with
the Allegheny company for some time
to secure natural gas. Combining this
fact with the action OF the Allegheny
company in opening negotiations for .
franchise from the city of Richmond
these people believe they see an at
tempt on the part Of the Allegheny
company to hold mp the Light, Heat
and Power company for more advantar
geous terms
The fact that the Light, Heat and
Power company officials decline TO dis
cuss this phase of the question tends
TO confirm the suspicious of those who
view the franchise proposal OF the Ale
gheny company as q weapon aimed nc
the local company.