The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1914-01-31
ROBBINS AND BOND
HURRY TO CONSULT
(Contiaued from Page One)

rated, and he maintains that the COM
mission has established a minimum
valuation Of $850,00O on the plant of
the L., H. and p. company by au-
thorizing it's bond issue. This is the
same view held by City Attorney
Bond.
Ask Two Questions.
Two questions will be asked mem
bers of the state commission when
the local city officials meet with them.
They are:
What right had the public service
commission to say that the Light,
Heat and Power company must sell
it's bonds at 80 cents on the dollar
Why not at SO cents, or say rs cents
What made the commission fix SO
cents? Was it guess work or did it
determine that the value of the plant
would warrant the bonds selling at
80 cents?
I suppose after the commission had
approved the local bond issue at go
cents on the dollar a man purchased
bonds at this figure, then later the
commission made a valuation OF the
plant and found that the bonds were
worth only so cents on the dollar in
stead of 80 cents, as the commission
determined, would not the commits
sion be guilty of depriving him of &C
cents on every dollar he had invested
in the bonds?
Mr. Bond has acknowledged on sew
eral occasions that it was his opinion
that the commission would allow the
company to include the artificial gas
plant equipment as a part of the nat
ural gas valuation, as the company
must hold the plant in readiness to
serve in case the natural gas fails
therefore it would not be fair to com
pei the company to hold this equip
ment without figuring it used and
useful valuation item. The company
it is understood, is now using the
large holding tank for natural gas sc
that there will be no question of not
figuring in the artificial gas plant as
part Of the natural gas plant valua
ton.
View of Bavis.
President Bavis of the board of pub
lie works does not take the same view
On the bond issue as those held by
the mayor and the city attorney and
he gave out the following interview
today:
while l concede the point raised
that the authorizing of the bond is
sue of $S5O,00O is tantamount to ar
acknowledgment of the company's
physical valuation being at least equa
to the bonds issued, l cannot admit
that it necessarily means authority tc
base rates charged for natural gas or
such valuation without appraised tC
determine the physical value Of the
plant that is used and useful for the
supplying of natural gas to the inhabi
tants of Richmond.
TT must not be forgotten that the
Light, Heat and Power company has
three distinct and separate utilities
electric and natural and artificial gas
The company is holding the artificial
gas plant by the consent or at the re
quest of the city, but on their owl
volition
THE issue of S85O,OO0 covers three
utilities and insofar as the city is un
der no obligation in the holding OF
the artificial gas plant in readiness
the proportion of the debt incurred by
the artificial plant cannot be charged
as a debit against that which is USED
and useful for supplying natural ga:
Or electric current.
Il look upon the artificial gas plan
as having no bearing and any portion
of the debt standing against it, the
retiring of which debt a part of the
! bond issue was authorized, is dis
tinct obligation assumed by the com
| pany which the city can in no way bt
held responsible.
IF the Light Heat and Power com
pany started a water works service