Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1918-05-27
GIVE CREDIT TO
POWER CONCERN
peaple's Company Receives Praise
for Economical Management
BY Commission.
WV GAS RATES IN EFFECT
rndeavor WIN Be Made BY Cor
poratIoH to Increase Charges
for Electricity.
An endeavor will be made to in

crease t-iN-t t' fHN'A AalCH.
Information 10 this effect was
-iye1 in al interview with George
Z. Macdonald manager of the
Peoples Power company, today
Nj. Macdonald declared that the
increased cost in material and
labor which recessitated the ad-
vance in EaS rates, similarly anects
cost OF producing electric power
and that an analysis Is now being
made with the purpose in view of
presenting Q petition 10 the state
public utilities commission in
Springfield Tor authorization Of the
contemplated advance.
Mr.. Macdonald said that the in
crease in gas rates which the util-
tiles commission recently author
lied, Win date from May l and
Eay bills which VIII be issued to
consumers This week, will carry
the frst increase.
"It might be interesting to know"
NJ Macdonald said today" that
tlp state public utilities commits
sion compliments the Peoples
Power company very highly for the
economical manner in which it is
operated The report Of the COM
mission, in substance contains
words Of praise for the low cost of
maintenance AGAINST the ever in
cTeassag cost Oh 4dooI ana material
A Bloomington u'lIl'ie5 company
recently received warm praise LOT
the oait-sL mama ( eilleHi Oh us
plant bdt our com pdhy was con-
siGeTel as 1tlts oL HlsAeF stahd :
ara OF EMERGENCY than tAat OF
Bloomington
Aho,AeI point 10 ne Cohslderea
in the increase III eIect noW-the
smaH consumer leelS IL less heaFlly
tan lAe large one Inc small
Consume! pays an aaFdhce OF 10
cents per -,Vtv CUBIC leeL OF gas
While the large consumer pays
. cent increase
In authorizing the increase IN
rates. the utilities ommlssion
placed our charges bdtE 10 Ine
same uasle lAel were before july
OF 1910. OuI CAdI yes men were
me SAINT as the! are 10 ne III the
llllle' O4I charge, as II aHecls
the larger NUMBER OF consumers,
Is 81 -1I l.UtJ CUBIC Ieet. an IN
crease from IS scents which was
liked IN July OF 1915.
Increased Costs.
we showed the state utilities
commission that in the first eight
months OF 1917, our cost for labor
increased - per cent and our cost
for material Il6 per cent over the
cost during the last normal year,
1914 Our material now costs US
100 per cent more and our labor
now costs us y per cent more than
il did in 1914.
after we had presented our re-
port TO suhsJantiate our claim for
the increase, the utilities commits
sion had two engineers here for
six weeks looking over our prop
erty In our report. based on con-
diti0ns of Aug. 81. 1917. we showed
a valuation OF S1.4lG.777. This was
based on straight line deprecia
ton from the original cost Of the
plant and equipment, not on the
present-dav cost which is far great
e.. The commissions engineers,
however, reported backa property
valuation of SI.450,OO which is an
increase Of $33 23T over that in our
report The increase is probably
due 70 the fact that, included in
the report of the commissioner en-
gIHeer5 there were the improve
ments We have made since Aug
ust Of last year when we made our
survey,
Getting down to palmer figures,
the engineers reported that with
me increases now authorized, the
Peoples Power company will re-
ceiye on an average Of 9712 cents
per 1000 cubic feet Of gas, where
as Il should receive, TO make a rea-
sohable profit, SlO4 per 1000 cubic
feet Of gas.
I think the people Of Rock Is
land readily appreciate the fact that
our material and labor has in
creased IN cost. They further ap-
prec+ate that their rates are now
back on the basis in the period
preceding July Of 1916"
Mr. Macdonald was asked if the
power company contemplated in
creasing electric rates. In reply,
he said.
There is being made at the
present time an analysis to show
The cost Of manufacturing electric
power. The COST for This has ad-