The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1918-10-01
FLAT RATE FOR
ARTIFICIAL GAS
IS SET AT $1.25
Council Approves Establish
ment of New Gas Rates tor
City.

petition from the city and the Rich-
mond Light, Heat and Power company
to the Public Service Commission LOT
the permission to proceed with the
establishment of these rates was ratl-
fed by council at special meeting
Monday night. City Attorney ROD
bins read the petition. The vote ap-
proving the rate was unanimous.
The rate is accepted as an eminent
ly fair one. The cost of manufactur-
ing the artificial product, with coal
and coke prices high and other mate
rails that enter into the manufacture
Of gas much higher than they were
years ago, 1t is believed that $125 Is
fair to the consumer
City Attorney Robbins and city Off
Gals made an exhaustive study OF the
factors that enter into the fixing OF
rates for artificial gas. Experts were
consulted and made an investigation
of the company's books to obtain data
that would guide In rate fixing.
The report from a committee ap-
pointed by Howard Dill. president Of
the Commercial club and committee
appointed by Mayor Zimmerman was
read. The report is as follows:
To the Citizens Of Richmond:
The undersigned, committee APP
pointed by the Mayor, and commit
tee appointed by the Commercial club
Board of Public Works, the city at
torney and the manager Of the Rich
mond Light, Heat and Power company
for the purpose of considering the
question Of rates or gas to be furnish
ed by the company to the citizens OF
Richmond. AS Is well known, the com.
pany, owing to the probable made
quate supply Of natural gas for the
ensuing winter, submitted to the city
written proposal to furnish artificial
gas during the winter months at a
fiat net rate Of $3.50 per thousand
cubic feet, and to furnish natural gas
during the other months at the present
natural gas rates. This proposition
was refused by the city.
We were informed today that, after
much controversy and negotiations ex-
tending over period Of several weeks
the city and the company, subject to
the approval of the Common Council
and Of the Public Service Commission
Of the state, had tentatively agreed
upon a schedule of gas rates as fol-
lows: A fiat rate Of $1.25 net per thou
sand cubic feet for artificial gas dur
ing the period artificial gas is furnish
ed; the minimum charge for artificial
gas to be 20 cents. and the present
existing rates for natural gas during
the period natural gas is supplied
The City from the time the company
first made its proposal until this agree
ment was reached has had the assist
ance and services in arriving at fair
rate Of Mr.. 0. G.. Herdrich, an account
ant, who for several years was the
chief accountant of the Public Service
Commission of Indiana, and who was
recommended to the City by the Com
mission as thoroughly honorable and
competent accountant. We are inform
ed that during the course of these ne
gotiations there have been frequent
and long continued conferences be-
tween and by all of these with the
representatives of the company, and
that there has been a diligent and ex-
haustive effort on the part of the City
TO ascertain fair gas rate for the
City.
Books Examined.
This has involved an examination
of the company's books, all of which
have been readily submitted by the
company for inspection, an examina-
ton of the annual reports of the COM
pany to the Public Service Commits
sion, inquiries and investigations as
to costs of production of artificial gas.
prices present and prospective of oil,
coke, coal, labor and all elements that
go into the production of artificial
~ hn oY oil
ing the distribution Of gas, the ques-
ton of the fair valuation of the physi-
cal property of the company and the
net rate to which 1t is entitled on
its investment, the estimated amount
of consumption Of gas both natural
and artificial, the probable duration
of an adequate supply of natural gas.
and all matters which were revelant
and pertinent to the ascertainment of
fair gas rate.
We believe there has been a most
diligent effort Of the city officials in
behalf Of the best interests of the CITY
to ascertain and establish a fair rate.
and that the company has sought also
to be fair with the city. From all the
information we have received concern
ing these negotiations and considering
the natural gas rate as affected by
and in relation to the artificial gas
rate, the costs and elements affecting
the gas rate, the present hazardous
economic conditions brought about by
the war, we believe the tentative
agreement made by the city with the
company and the rates therein set ont
10 be fair and reasonable for the en-.
7uing year under present conditions.
and believe they should be formally
atified by the Common Council.
This agreement cannot be binding
unless approved by the Public Service
Commission after due consideration
The Public Service Commission at all
times has the right and power to
FAMINE the company's books and as.
ertain the amount. Of it's earning I'M
Ter this rate, and the commission
der the law has the right to and
over at any time upon the request
and proper showing made by,
Their the city of the company to lower
10 raise this or any other estab-
ished rate as conditions may Justify
this matter the interests of both the
1ublic and the company are protected
JOHN J. HARRINGTON. Jr.
L. S. BOWMAN.
IRA SWISHER.
CARL w. ULLMAN.
Committee Of Richmond Com.
mercial Club.
JOHN NJ. LONTZ