The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1914-04-30

various component parts of this con
sondated company
Ihird; That the valuations placed
Upon the various parts OF the property
OF the company as shown By the inven-
tory and appraisement OF General
Manager sullivan. are unreliable: that
inventory and appraisement being 50
constructed as to satisfy stockholders
and the investing public that the out
standing liabilities OF stocks and bonds
we're not too FAR removed from the
actual value of the property owned by
the company.
Fourth: That the tax values are
equally unreliable as basis for rate
making. because the income or earn
ing power OF the several component
companies was regarded as more
important consideration as basis
Tor taxation than the actual normal
cost or the present actual value. less
company
What Rebuttal Testimony Showed.
The utter insufiiciency of any of
these valuations for rate making pur-
poses was more clearly demonstrated
when testimony was offered in be-
half OF the consumers BY way of re-
buttal. showing the fair cost prices
Tor the production. transportation
and distribution of natural Cas as
shown a. by the figures obtained
from these defendant companies them
selves; and 90 by the prices realized
Tor their product by other natural
gas companies operating in the same
territory
II was shown clearly by the testi-
mOny OF Doctor l. &. White and 9TH
ers. called in rebuttal. that a selling
price OF six cents per 1000 cubic feet
OF gas at the mouth of the gas well.
would give the producer in any OF
the gas fields OF Northern West Nir-
ginia, profit of from l5cc to 300
over and above all operating eX-
, penses and interest and depreciation
upon his investment: and that six
cents per 1000 cubic feet at the well
as a basic market rate Is a liberal
and rather high rate. and the full
worth of the product at the well
mouth throughout Northern and Cen
trail West Virginia.
This conclusion of Doctor White
and other Witnesses thoroughly &C
quainted with the natural gas bust
ness, is corroborated by the fact that
in nearly every gas producing Held
in Northern West Virginia, the pro-
duct Is now being supplied TO in
dustries located near or within a
radius of sixty miles OF the gas held.
at five cents and six cents, which
rates not only cover the cost OF pro
duction. but also the cost Of trans
portatiOn and delivery to the point
. of consumption. and as well. prOht
TO each of the agencies of production.
transportation and distribution.
a careful analysis of the actual fig-
ures obtained from the books OF the
defendant companies by the experts
employed by this Commission ana ad-
mitted to be correct by the officers
of the companies themselves, show
that the cost OF natural gas produced
by the defendant companies them
selves Excluding that which they
purchase from other companies is full
ly covered by charge OF 81 cents
per 1000 cubic feet: and these de-
PENDANT companies are perhaps at the
present time producing their own nat
ural gas under more unfavorable con-
ditions for economic production than
any other gas company or combina-
ton OF companies operating in this
State.
Determining Reasonable Rates.
The undersigned. as one Of the
Commissioners in immediate charge
OF this Investigation. felt obliged
therefore to approach the problem OF
determining just and reasonable
rates TO the consumer by ascertaining
the actual facts and conditions under
which the production. transportation
. and distribution of gas as product
was being prosecuted by the defend
ant companies. and what conditions
could be regarded as average and
Formal as 10 the various elements OF
cost
Starting with six cents per 1000
/ cubic feet as a basis for normal cost
Al the well mouth. and then adding
thereto just and reasonable charge
I for transportation from the well
mouth 20 the point OF distribution and
then adding there to a fair charge for
distribution under normal or average
conditions. satisfactory and safe
be sis for total cost of the product at
the meter Of the consumer could be
arrived at
The evidence sought to be obtained
from experts and witnesses called IN
rebuttal by the Commission was along
these lines This evidence. carefully
Analysed and summarized tends to es-
tablish and. We think. does establish.
that one cent per 1000 cubic feet o.
Cas is fair and sufficient charge 10
cover the gathering and transporta-
ton Of natural gas from the well
mouth. by means Of compressor sta
lions and pipe lines. 90 any point or
distribution within sixty miles Of the
we'll mouth and that this charge OF
one cent viii allow profit or return
on the pipe lines and compressor sta
ton plant required Tor this purpose 81
from l5f, Co 300 when worked 10
average capacity.
The evidence in this record aIso
tends 90 establish. and We believe
does establish. that the cost Of nor.
NAL distribution will boz no case OK
coed cent per 1000 cubic feet Of
aas delivered 20 the meter Of the con
sumner and in most localities will be
much less. grading down 10 AZ low a.
uuciOurfh az q cent per 600 cubic
feet of EaH delivered. So that the total.
cost under normal conditions OF pro.
duCing natural gas boz West Virginia
and tranap porting the same from the
well mouth To- the point OF distribu.I
ton and Of distributing and deliver.
frE The same 10 the local consumer.
M any point within sixty miles OF the
well mouth viii not exceed in tho|
arErcEafg sl cents per 900 cubic
feet of gas delivered and that these
estimates have made ample allowance
Tor profits on every dollar Invested
ana tp an persons concerned iu the
business at any stage and Will give
"a fair return Co the farmer or lessor
OF The gas territory The lessee. OF tho
gas prOducinF company. and the pipe
line company which transports and
Tho local gas company which distrib.
ute7 and delivers tho product
Normal Market Rate
Now. 10 We shall add 90 the forcro.|
irE aggregate 81 sit cents an allow.
auCe by way OF o. per cent or f.f-|