The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1914-03-13

fact that these have increased over
$4,000 during the four years, ac.
cording 20 the companys present
statement: and in view of the fur
Their fact that II appears that items
have been charged in some OF these
accounts that do not belong there;
and In view of the further fact that
less gas was manufactured and dis
trlbuted in 1913, then I'm $780,, we
think this commission would be fully
justified in adopting the $4,000 as
the outside figure that the company
should be allowed for operating ex-
penses for any of these years. II
Is true that taxes have increased
over those of 1910, and that appar-
emily an item Of about $4,000 that
was charged TO other departments
in 1910, has been lost TO the COM
pany. VI. ...
ITO be absolutely on the safe side
this commission will certainly have
been as liberal to the company as
II can or should be, II II allows
$4,000 for operating expenses for
1913. 81.
I'm this connection the commission
should also remember that the evil
dence shows, conelusively, that dur
ing the year, 1913, the company
manufactured and furnished to its
patrons very inferior article of
gas. $3.50 .r,. 4
at can not be possible that the
operating expenses of this depart
ment can honestly have increased
to the extent of $4,000 in four
years.
According to the company's fig
ures the average operating expense
of the gas department for the past
four years has been $26.c52 %. If
this commission should adont that
figure, the company surely can not
complain. .
1--WE have found no case thus far
decided. that has held that a six
per cent rate on the property de-
voted to the public use, by public
service corporations is unreasonably
low. ..st
In view of these facts, 1t seems to
us that in the present case, a net
income OF six per cent per annum
on s165,00o 90, is all that the Con-
sumers' Power company is entitled
to receive, from its gas department
i'm this city. "
Six per cent on s165,O00
amounts TO ....... $4,000. 90
Adding to that sum, oper-
ating expenses ....,... $4,000. 90
Adding to those two sums
two per cent for depre-
citation ............. 1880. 90
We get a total OF -. s3S,200. 90
I'm order to give this company
an income of six per cent upon its
investment, after the payment of
$4,000 in operating expenses, per
annum. and allowing 1t $4,000 for
annual depreciation, sum equal to
this total Of $4,000 must be pro-
duced.
Amount of Gas Sold.
at appears from the evidence that
during the past four years, the COM
pany sold an average of 36,215
thousand cubic feet of gas in Man
kato proper. II Is fair to assume
that this amount OF gas will be pro-
duced annually In the future, II not
more. 3s.215 thousand cubic feet at
$1.10 per thousand, will produce
$3s,sS6.50 per annum or about ST..
500 more than enough to give the
company an annual income of six
per cent on its investment. two per
cent on it's investment for deprecia-
tion and full payment Of all operat-
ing expenses. s-
In view OF all these facts, under
the evidence before this commission,
It Is in our opinion, the duty of the.
commission to recommend TO the city
council Of the city of Mankato the
passage OF an ordinance, fixing 81. 10
per thousand cubic feet, as the high.
est maximum amount the Consum-
ers' Power company shall have a
right, hereafter to charge ronsum-
ers Of gas. In the city o; Mankato.
This investigation has demon
strated the existence OF at least
two evils. that should be checked
and guarded against for the benefit
Of the city and the consumers OF
sas and electricity in the city.
Should BE Public Record.
Neither the city nor the con-
sumner, under present conditions, has
any means Of knowing how much
gas or electricity IL beings consumed