Alma record. (Alma, Mich.) 1878-1928, 1919-07-10
TEN PER CENT
RATE INCREASE
Gratiet County Gas Company
Has Asked City to Grant
Increase in Gas Rates.
HIGHER COSTS IS REASON
Manager Wagner Told Commission
Tuesday Evening of Necessity
for Immediate Aid.

Through its manager, K. b. Wag
ner, the Gratiot County Gas company
Of this city formally asked the city
commission Tuesday evening for per
mission to raise its gas rates ten
per cent or to Sl.37 in order that
the company may keep pace with the
high cost Of materials and labor.
A year ago the company asked
for a raise in rates, the proposition
being voted upon in Ithaca. ST. Louis.
Breckenridge and Alma. st. Louis
and Alma rejected the proposition
at that time while it was carried in
Breckenridge and in Ithaca Man
ager Wagner i'm explaining how the
company had been forced TO the
limit this past year to make both
ends meet called = ~attention TO the
higher rates which the company was
getting IN Ithaca and Breckenridge.
He also stated that the company was
charging higher rates for main
tenance and appliances to make up
for the losses which il was suffering
from the lower gas rates in st. Louis
and Alma.
In his talk to the commission Mr.
Wagner stated that it was due to
misunderstanding that the PROPOSE
tion had been defeated last year. as
the people at that time did not thor
oughly realize wha- the company
was up against IN being forced to
purchase its material at abnormal
prices. while pre-war prices were all
that were being received for gas.
He told the commissioners that the
company had paid an average divi-
dend Of only one and three-fourths
per cent since il had been organized
here showing that the stockholders
OF the company were not realizing a
fair return on the investment that
they had made
Mr. Wagner told of the fight that
had been made at the Waycross. Ga,
plant in which ne was interested. A
rate Of $3.50 had been given the
company for the duration Of the war,
and when the council there attempted
20 force IL back to sl.40. the com
pany appealed to the utilities COM
mission Of that state, and that COM
mission gave the company a rate of
Sl.7O. higher than even the company
mad contended that it should have.
Mr. Wagner pointed out that near
ly every utilities company in Mich
igan had secured raises in rates, |
owing to present conditions. and that !
most of them for gas companies |
were higher than the rate being |
sought here. He stated that the |
company was seeking only what was
needed to keep the business going |
and pay a small dividened. The
commission was also told that the
company had reached the l~lt of its
borrowing credit at the local banks
and that it must have speedy aid
He expressed himself as very
wiling 20 go before the utilities com
mission Of the state with the matter
II the commission did not feel like
taking the matter up
lt' NI'.IN't Nl lfit hliIilANil NA NtiN
majority of the commissioners and
Mayor Murphy seemed to be that
the company did need some aid be-
cause of the abnormal conditions.
After Manager Wagner had left the
commission chamber a short dis
cussion of the matter took place,
during which one or two Of the body
expressed themselves 20 certain ex-
tent in the matter, holding the view
that goods could not be bought at
present day prices and sold for pre-
war prices, if an institution was TO
continue in business. l.
Manager Wagner was promised (
consideration in the matter and
Mayor Murphy promised 10 appoint
an advisory committee to work with
the commission In going into the
matter of the raise in rates. A meet
ing Of the gas company officials. the
commission and the advisory com
mittee has been set for Friday