The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1916-02-19

Indianapolis, Feb. 19.-Chairman
Thomas Duncan. speaking for himself,
and without committing other mem
bers OF the public service commission,
declared at the close OF the Richmond
gas hearing yesterday afternoon that
he recognized that the Richmond
Light, Heat and Power company is en-
titled to additional revenue from the
sale OF natural gas. but he expressed
himself as being unwilling, on the
showing made by the company. to
vote for temporary rate as high as
20 cents.
Mr. Duncan suggested that the city
and the company make an attempt to
agree on some intermediate rates
some rate between the present one OF
80 cents and the proposed one OF 20
cents
The companys earnings in 1915. &C
cording to the audit of the company's
records. were $4,000 in excess of its
operating expenses. but considerable
deficit is shown when an amount for
depreciation and for interest on fixed
charges is deducted from this sum.
Howard Testifies.
A c. Howard Of New York. q gas
engineer in the employ Of the holding
corporation for the Richmond utility,
was the sole witness. Howard testi-
fled that the reproduction cost. now,
of the gas plant would be $S5O.OOO.
but he added that he had included
some questionable items, such as paw
ings over mains which, IL deducted,
would bring the figures down to $780,
600 He placed the present condition
of the tangible property at 80 per cent.
He said that the average price receiv-
cd for the gas under the present sched-
ule Is about 80 cents per 1000 cubic
feet. This is about 3 cents per 1,OO0
cubic feet above the cost OF the gas
10 the company--the cost including
the price paid to the West Virginia
producing company, an allowance Tor
leakage, a charge for taxes and pro-
motion of business, but without allow
ance for depreciation, overhead ex-
penses and interest.
Consumption Increases.
u developed that the consumption
Of gas in Richmond has jumped from
10000 900 cubic feet, the quantity oil
artificial gas that was being consum-
ed. TO 320,O0O.O00 cubic feet. the
amount of natural gas now consumed.
II was admitted by the companys en-
cincer that this consumption probaD-
" would decrease under Increased
rates. The engineer declared, how
ever, that this decreased consump-
ton would result from economies prac-
ticcd by consumers rather tlan BE-
cause of any meters being taken out
Mr. Howard testified as to the com
pany's revenues and expenses for each
CT the past three years.
IN 1915 the company's gross reve-
nues aggregated $4,000. It's operat-
inc expenses reached $4,000. This
left a net revenue of 10000. Inter-
est on the company's fixed charges.
according to Howard's figures. would
have been $4,000. to which the com
pany's engineer added S1,7OO for de-
probation. Subtractins $4,000. the
revenue left after paying operating eX-
penses, from the interest and deprecla-
ton charge leaves a deficit for the
year, according to the company's cal
culations, OF something like $4,000.
1t is expected. however. that the COM
mission would be willing, on final
hearing Of the case in June. to allow
interest on all the fixed charges the
company claims to have a charge
against the public for rate making
purposes.
Engineer Howard said that the com.
many would have to sell at least 9OO,'
100000 cubic feet in year at the
present rate to put the company on
a paying basis. He said that such