The labor advocate. [volume] (Cincinnati, Ohio) 1912-1937, 1916-05-06
Boost In Rates Proposed.
Sliding Scale Suggested
By the Gas Company
With Minimum Monthly Charge of &C., Question To
Be Discussed at Public Hearing.-Letter from Presi-
dent Freeman Tells Council Company Believes Larger
Increase is Justifable.

gross earnings are reported as $780,
760.60, but there is a drop in the net
earnings to $5j4,532.sO.
This table shows, Mr.. Freeman says,
that while the introduction of natural
gas has increased the consumption of
gas and benefited the consumer "to a
very marked degree, it has in every sense
been losing proposition to the gas COM
pany,' its net earnings in 1915 being
$212,OO0 less than it earned in 1906 from
the sale of artificial gas Mr.. Freeman
explains that the company gets its Sup
! ply of natural gas from the West Vir-
ginia and Ohio fields under contracts
with the Columbia Gas and Electric
Company and Ohio Fuel Supply Com
pany
Must Pay More, President Says.
Under the contract with the Ohio Fuel
Supply Company the Union Gas and
Electric Company at present pays 10
cents a thousand cubic feet, he says
which, according to the letter. will be in
creased in 1918 to 20 cents. Under the
contract with the Columbia Company the
rate is 1917 cents a thousand cubic feet,
but, beginning the first of next year, he
says, the charge will be increased to 22H
cents For the amount of gas purchased
from the Columbia Company during the
calendar year Of 1915 this increase will
! amount i'll the aggregate to $332 204. The
additional charge of one cent to be paid
to the Ohio Fuel Company will be $780,
1888 year, based on the amount of gas
purchased from that company in 1915
/ Mr hat hac
two items and taking into consideration
other unavoidable items of increased
cost, the Union Company must provide
for minimum of 100000 year of in
creased expenses, in addition to the nor
NAL increase in the operating expense
proportonatc to the increase in gas
sales.
An item of additional expense that
will dcvolvc upon the company, accord
ing to Mr. Freeman, is the immediate
need for an expenditure of "at least
$3.50 900 to enlarge the present gas mains
in certain sections OF the city including
Walnut Hills, Hyde Park, Madisonville
Oakley, Cheviot, Mt. Healthy, Mt. Airy
and College Hill
Taking up the valuation Of the com
pany's property as fixed by Mr.. King
inaccurate and unfair Standards "Th'
earning value placed by Mr.. King upor
the company property used for Cincin
natl business is Ss,326. 1864. Mr.. Free
man complains that Mr.. King entirel,
omitted the companys investment il
Norwood, St. Bernard, Reading ant
other communities served by the com
pany, which are not organically a par
of the city of Cincinnati" and he als
excluded from his valuation "a certain
r proportion OF property inside the cit
as applicable to outside business" MI
Freeman contends that the only "fai
- way would have been to include all o
the companys property in Metropolita
u Cincinnati
t The value placed by our company,
t says MIR. Freeman, representing onl
the items valued by Mr.. King, but in
Guiding the entire Cincinnati district. re
gardlcss of city boundaries, is $l5,0o2,
/ Cos"
Mr.. Freeman further contends that tn
$ inclusion OF such elements of value a
| going value" and cost Of financing,
! which have been recognized by Publ
I Service Commissions and Courts, woul
, bring the present value OF the gas prop
erty for ratcmaking purposes at no
, less than Sl6,OO0,00O.