The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1913-08-13
R|CHMOND'S ACTION
ON GAS PRECEDENT
indianapolis Wants Rate Re-
duction Accomplished on
Same Lines.
lNational News Associatfon)

AA$Di@AA$AI oLio, Aug. 10 Inc sue
cessful termination of efforts to bring
about lower gas rates in Richmond by
merger has occasioned comment re-
garding the apparent Indifference of
indianapolis city officials toward do
ing anything to obtain lower schedules
here. kaichmond has been assured
much lower schedules and it has been
said that il Indianapolis officials had
taken any interest when the proposed
merger of the Indianapolis and the
Citizens companies arose, they might
have aided in a satisfactory adjust
ment that would mean an enormous
saving to residents of this city.
The commission has heard nothing
further from the indianapolis and Cit
izens ga companies regarding their
plans for a merger. representative
OF the Citizens company had a confer
ence with J. l.. Clark, a Republican
member of the commission, before he
left here last week on his vacation,
but the other members do not know
what 1t was about
Officials Are Inactive.
&, Unlike the Richmond case, the COM
mission has no definite idea what the
city OF Indianapolis wishes regarding
the proposed merger. No representa-
tive of the city administration has
asked the commission to pursue a
given policy or has suggested a set
Element of the merger that might re-
suit in the reduction of rates to the
consumers as will be the case in
! Richmond as soon as the program
submitted to the commission is car
tried out. Since Merle N. A. Walker,
city attorney, has decided to draw up
a new resolution for the councilmanic
committee it is not regarded as prob
able that the commission will get any
new light on the situation from that
source
! Chairman Duncan says that the COM
mission has not received any propos-
ais or suggestions from the city as yet
as to where the city stands regarding
the merger of the two companies. No
one representing the city has asked
that lower gas rates shall be made if
the two companies are allowed to
merge and have a monopoly of the
local field.
The Richmond agreement, which
came about through negotiations be-
fore Chairman Thomas Duncan and aD-
proved by the entire commission, will
enable the consumers at Richmond to
buy gas at 80, IS or 40 cents thous-
and cubic feet, according to the
amount used.
Chairman Duncan says that the out
come of the controversy between the
two gas companies at Richmond DEM
onstrates what may be accomplished
under the Public Utilities Commission
law. He points out that the elimina-
ton OF competition will give Rich
mond much cheaper gas and save the
stockholders of the Richmond Light,
Heat and Power company about $780,
900.
The Richmond Light, Heat and Pow
er company was charging $1.1O a thou
sand cubic feet for artificial gas. The
council granted the Allegheny Gas
company a franchise to use the streets
and alleys for the purpose of distri-
buting natural gas.
In a controversy that arose then
between the companies the CONNER
cial club and city officials of Richmond
took part with the view to obtaining
the best contract and lowest possible
rates for the consumers. The Rich
mond Light, Heat and Power compa-
ny threw the situation into the hands
of the utilities commission by surren-
dering its franchise and asking for an
findeterminate permit.
] The utilities commission law pro-
vides that when a company surrenders
its franchise tt sSall receive an indie
terminate permit. However, the state
shall then step in and have absolute
supervision over the properties. The
controversy between the two compa-
MES was settled quickly at Richmond
as soon as the state, through Chair
man Duncan, took a hand The old
company has assumed the rights of
the new one and natural gas will be
supplied in the place of the artificial
gas at rate so yer cent lower than
was charged undsf the old order of
things.
According to chairman Duncan, the
gas monopoly, so-called, at Richmond,
not only gives the people there much
cheaper gas, but puts an end to
fight between two companies that
would have resulted in a big loss to
the stockholders. The agreement pre-
vents a duplication of properties,
which is according to the theory of
the utilities commission law. Chair.
man Duncan says that the outcome
of the Richmond negotiations shows
the possibilities of the operation of
the commission law.