The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1916-06-22

INDIANAPOLIS. June 22.-How ex-
perts vary In their expert valuations
OF public utilities was shown yester-
day in the hearing Of the Richmond
natural gas rate case before the Indi-
ana public service commission. Com
missioner Thomas Duncan, sitting.
A. c. Howard, Of New York, gas
plant expert, placed the present and
going value of the plant and service
OF the Richmond Light, Heat and Pow
er Company at $774,649.
Samuel Wier, Of Cleveland, O., an
other expert employed by the company
placed the present value at $S41,76S.
The Indiana commissions own engi-
neers, without making any allowance
for going value" which Howard had
placed at $107.4s0, placed the present
value at $40S,165.
Other Items Left Out.
The commissions engineers, how
ever, left out two or three other items.
One was the old coal gas plant which
the Richmond company is now trying
TO include In the valuation of its nat
ural gas service In it's justification for
an advance from 40 to 20 cents a
thousand cubic feet OF natural gas.
The commissions engineers also
eliminated values such as we're includ-
cd by others for uncut paving over
mains. It's estimated overhead" for
engineering and construction charges
was only IL per cent, against Weir's
20 per cent
The hearing yesterday was taken
up with an analysis OF appraisals by
various experts. Oren A. Miller and
Harry Pinnick, Richmond contractors,
were introduced as experts. and they
estimated the values Of various build
fngs, almost all used for the old arti-
ficfal gas service, at $40,611 and $685.
$50, respectively.
Work Of Citys Attorney.
William A. Bond, the Richmond city
attorney, spent the day In getting the
experts TO segregate that part of the
Richmond company's plant, which Is
not used and useful at this time in the
service OF natural gas This would
eliminate entirely the old coal and wa
ter gas plants and several miles of
duplicated and unused mains.
The city OF Richmond insists that
under the Indiana law, only plant
used and useful can be charged
against the people being served-that
rate sufficient to pay fair return
on 1t. can be demanded It is in
sisted that the demand for an increase
In rates Is predicted on an attempt of
the company to get included in the
valuation and the ratemaking all of
the old artificial gas plant which is
now used or useful"
In cross-examination Bond listed
property both equipment and buildings
not used and useful totaling over
$4,000. and he was demanding fur
Their segregations.
The Indiana public service commits
eeion's engineers in their valuation had
eliminated some of this plant, espec-
Tally duplication of pipe lines, but had
included other parts which might, I'M
der emergencies or for reserve, be
useful even in natural gas service.
Under Bonds attack, several deduc-
lions were made by the company's eX-
pert engineers.
Bond brought out during the cross
examination OF Wier that the Rich
mond company pays % cents a thous-
and cubic feet, measured at the gates
of the city for all gas used for domes-
tic purposes and q cents a thousand
cubic feet for gas used for commercial
purposes. The average rate for domes-
tic use for consumers now in force is
about 40 cents and the company is
asking the commission to grant an in
crease in the rate to 20 cents thous. |
and cubic feet.
Mr.. Wier testified that the maxi |
mum rate in Dayton. o., for natural
gas is "a cents and the maximum rate
in Columbus, o, is 80 cents. Both Of
these cities are supplied from the
West Virginia fields.
The Richmond company contends !
that in placing a valuation on the com
pany's property for rate making pur-
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