The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1914-05-01
Friday, May 1, 1914.
THE GAS RATE REDUCTIONS.

THE GAS RATE REDUCTIONS.
The value Of the Public Service
Commission as mediator of the
wrongs suffered by the people of the
State from the exactions Of oppres-
sive corporations has been referred to
by The lntelligencer before. but the
Illuminating matter contained in the
preliminary report of Commissioner
Howard y. ogden. which resulted in
the recent order OF the Commission re-
ducing the rates charged for natural
gas calls for another reference to the
ameliorating functions OF that body.
Commissioner ogden. in the prelimin-
airy report published in yesterdays
Intelligence goes over the whole
ground OF the contentious Of the gas
companies and the complaints and
statements of the consumers. and
makes out a clear case OF justification
for the rate reductions ordered.
In Analysing the statements Of the
Manufacturers Light & Heat Com
pany. which is the holding company.
e. was found that their appraisements
and investments were wholly unreli-
able. and refuted by testimony in
cross-eXamination and by the probing
Of experts IL was discovered that
the capital stock had been unwarrant-
ably increased and watered by sue
cessive reorganizations and consolida-
tons; that the capital account Of the
company carried upon its books was
inaccurate as statement of moneys
actually paid out and invested in the
purchase and acquisition of the vari-
Gus component parts of the consol-
dated company. The valuations and
appraisements were so constructed as
TO satisfy stockholders and the invest
ing public. and the tax values were
found TO be equally unreliable as a
basis for rate making. The reason
given for this conclusion was that the
income or earning power OF the subsi-
diary companies was regarded as a
more important consideration as a ba.
sis for taxation than the actual nor.
NAL cost or the present actual value.
less depreciation. of the holdings Of
the company. These contentious
were proved in the testimony offered
in behalf of the consumers.
Such findings as these naturally
knocked the sails out Of the compa-
ny's justification for raising rates. as
It contemplated doing The Commits
sion found. on the contrary. justihca-
ton for reducing the prevailing rates.
in determining the just and reason
able rates to consumers. the Commits
sion started with a basis OF cents
per 1000 cubic feet for normal cost at
the well mouth. and followed il up to
delivery. on this basis OF cost Il
was proved that any producer in the
northern West Virginia gas field
would realize a profit Of from s 10 30
per cent over and above all operating
expenses. interest and depreciation in
Investment This was considered a
liberal and rather high rate. To was.
therefore. considered that the normal
market price TO tho consumer az any
point within go miles Of the field ought
10 De iO cents per 1000 cubic feet for
Industrial consumers on this basis
recommendation were made by Com.
missioner ogden to tho uu Commits
sion for considerable reductions 10 do.
mcstic and other consumers IN the sew.
cral districts into which the northern
gas Held was divided Tho Commits
sion approved OF all these recommcn-
dations except that they did not cut
The rate as deeply as was suggested
This step forward In guarding the
Public against excessive oxactions by