The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1915-06-29
RumOr Says Action Will Fol-
low Permission of COmmis-
sion for Increases Else
where.
CITY WILL PROTEST
Petition of L. HI. & p. Expect
ed if Municipal Plant Alb
serbs Electrical Unit of
Private Firm.

Information contained in an Indian
apolis dispatch today that acting upon
the recommendations of the authori.
ties of nine Indiana cities, the state
public utilities commission had author.
lied a radical increase of natural gas
rates by the Central Gas company of
Indiana, the holding corporation of the
company which furnishes the gas sup
ply of the Richmond Light, Heat and
Power company, caused President Ba-
Wis of the board of public works to de-
clare that any effort to increase the
local gas rates would be meet with
the vigorous opposition of the city.
For some time it has been rumored
that the Light, Heat and Power COM
pany was considering appealing to the
state commission for an increase in
gas rates. The rate now is so cents
per thousand cubic feet, with ten cents
of on payments before the tenth of
each mouth. The gas unit of the COM
pany operated at deficit last year,
but this was due in great part to the
heavy expense in improving the dis
tribution system to prevent leakage,
which, it is stated, amounted to about
thirty per cent of the supply.
Expect Rate Appeal.
In the event the city takes over the
electric light business of the company
it is the general opinion that the COM
pany will lose no time in appealing
for a gas rate increase, as the gas
unit could not be operated at a profit,
it is stated, if divorced from the only
profitable branche of the company's
existing business.
As in the case of it's electric busi
ness the Light, Heat and Power CON-
pany has surrendered its natural gas
franchise and accepted an indetermin-
ate operating permit from the COM
mission, SO if it appeals to the COM
mission for protection in the way of
increased gas rates the city, to pre-
vent such action, as Mr.. Bavis admits,
can only demand of the commission
that a valuation of the gas property be
established for rate making purposes,
hoping that such a valuation would be
sufficiently low to prevent any rate
increase.
City Officials Appear.
Mayors, councilmen and city attor-
neys representing Marion, Anderson,
Muncie, Alexandria, Elwood, Fair
mount, Riverside, Normal City and
Hartford City agreed yesterday to per-
nit the Central Gas Company Of Indi-
ana to make a radical increase in its
| rates for natural gas upon showing.
| made by an audit of it's books, that
the company had a deficit of several
! thousand dollars last year. The COM
pany supplies natural gas, piped to In
diana from West Virginia, to the sew
eral cities.
The company has been supplying
natural gas at a maximum net rate
of 40 cents for each one thousand feet.
| but under the new schedule agreed to
by the company and the municipalities
affected the maximum rate paid large
| ly by domestic consumers, is to be
boosted to 20 cents.
Representative of the different
cities indicated that they may later pc
tition the public service commission
to appraise the company's property
and re-adjust the schedule of rates up
! on the basis of the valuation shown.
The city of Muncie consented to the
| increased rates as temporary propo-
sition, it's representatives saying that
| it might decide later to ask the COM
mission to have its engineers evaluate
the property. The compromise agree
ment effected was decided upon at a
conference held in the service COM
missioners' room in the state house.