The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1913-07-23
State Engineer German Sug.
gests That Company Can
Still Complete.
COULD USE COAL GAS
Topic Will Be Discussed at
the Public Meeting to
Be Held Here.

AS told in a dispatch from indian
apolis yesterday, the public utility
commission will hold public hearing
here on August 4, to consider evidence
before acting on the natural gas fran
chise granted by the city council to
the Allegheny Gas company.
Chairman Duncan will conduct the
hearing and then the evidence submit
ted will be referred to the commission
for decision.
Chairman Duncan refused to discuss
the matter further than to say that all
parties interested would be granted
the right to appear on the date of the
hearing.
Just what action the commission
will take is a matter of speculation, as
there will be hard fight made on the
part of the Richmond Light, Heat and
Power company to keep the other COM
pany from coming in.
Basis of Its Protest.
The local company is making its
protest on the ground that it is large
taxpayer and has an established busi-
ness in Richmond and to bring in
competing company would handicap
the local company and might be the
means of forcing it to withdraw en-
tirely from the field. In this event
the company points out the city would
be in a bad way should the natural gas
fail
At the present time gas is manufac-
tured in Richmond from crude oil, a
process that is more expensive than
gas made from coal, which process is
now being used in some cities. To
change the present system to the coal
gas process would be very expensive
and, according to representative of
the local company, the gas could not
be sold much under 80 cents per 1000
cubic feet. There is a plant near Ham
ilton that supplies coal gas to Ohio
cities at 80 cents and even lower.
Engineer Gorman's Views.
Chief of Engineers German of the
Public Utilities Commission stated
yesterday that a thorough investiga-
tion would be made into the affairs of
the Light. Heat and Power company
and the cost of the different processes
of making gas. He said that it was
very likely that the Light, Heat and
Power company could establish the
coal process which would allow it to
make gas at much lower rate, as the
revenue received from the coke, which
is a by-product, would pay for the
cost OF manufacturing the gas. The
cost to the consumer for this gas
would be the distribution cost plus a
reasonable profit. He said that no
supply of natural gas was unlimited
and that it might last three, five or
eight years or even longer The life
of the gas would be determined by
the number of consumers drawing
from the territory.
"The Public Utility Commission
takes the place of competition. 1t
prevents a concern from underselling
certain rate. 1t would seem to a
person who is not familiar with the
details of the case that the Richmond
Light, Heat and Power company would
be forced out of business with the ad-
vent of the natural gas but there is a
way for that company to compete with
the Allegheny Gas company if the lat
ter is given its franchise" Mr. German
said.
What Wharton Says.
J. B. Wharton, manager of the local
company stated today that he did not
know what action his company would
take in case the commission granted
the franchise to the other company,
hut there was a possibility of q
change being made in the process of
| the manufacture of gas in Richmond.
and that a rate reduction would be
made considerably under the present
rate for artificial gas. Mr. Wharton
said the heat units of the coal gas
are about the same as the crude oil gas
and the former can be manufactured at
much less cost"