The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1919-09-08

LQdL pipe mas Deen advanced SUI per
cent, drilling, labor and other COM
modities from 100 to $50 per cent, and
coal, the price of which very largely
influences the amount of gas used,
800 per cent.
Earnings Are CurtaiIed.
In addition to these and many other
extraordinary items of expense which
Mr.. Gregory does not mention, there is
another feature which must not be
overlooked, namely, that the depletion
in our supply has brought about cur
tailment of our earnings through the
inability to deliver the former large
quantities of gas, and this deficiency
was further intensified through the
action of the United States Fuel Ad-
ministration in discontinuing the in
dustrial service during the past win
ter at the request of some of the In
diana municipalities, without increas-
ing the rate to offset the resulting loss
in earnings.
Our situation is not dissimilar to
that Of hundreds of other natural gas
and utility companies for whom relief
has been readily granted by municipal
councils or commissions during the
past year, even where their needs
were not as urgent as ours.
In all fairness, relief must be had
quickly, and in establishing new rate
we are endeavoring to be as reason
able and conservative as conditions
will permit, realizing that in this CO.
operative effort, burdens should be
equitably proportional between our
company, your company and your pat
rons. Each must meet a fair share if
further expensive efforts to benefit the
service are to be attempted
AT the present time we are receiv-
Ing 35 cents per thousand cubic feet
for natural gas at wholesale, and fur
thermore, we are now asking for fur
Their increase in rates in Ohio which
we expect will be ultimately granted.
Rate Equitable.
1T will therefore be apparent that
the rate Of 35 cents which we are now
establishing for gas furnished to dis
tributng companies in Indiana Is a
more than equitable proposal, especial
ly when you consider the greater dis
lance this gas is transported.
Without such an increase in price
effective by October !, it will neces
state the construction of many miles
Of mains and gathering lines, and the
installation of tWo-stage compressor
stations and other accessories, all OF
which in the face of present high costs
will entail an initial investment OF
relatively $250,000, and further add
lions as the field is developed
! While the life of any new gas field
! is always one of uncertainty as tc
whether it will continue to justify such
an investment and expense, never the
less the connecting gas company from
whom we receive gas at Sugar Grove
are willing to go forward and make
| the investment, but we cannot consid
| er doing so at the prices which they
now receive from us and we, in turn
can not agree to pay higher prices IN
less an increase is granted by our con
sumers and distributors.
From the foregoing it will be observ
ed that if anything looking toward 6
betterment of service is to be attempt
ed, the hearty assistance and promD
cooperation Of your company, yo;,l
city and your Public Utilities Commits
sion is necessary, and to these tribun
ais we submit the facts as above
stated with the assurance that if the
acceptance of this 35 cent rate can b.
had from your company, and all thu
other companies receiving gas from
our lines in Indiana. our company will
Immediately proceed with steps neces
sary to procure this additional supply
This action must be promptly takaI
If the effort to obtain the additions
supply be made in time for the comm,
winters service.
Yours very truly
THE LOGAN GAS AND FUEL CO.
By K. c. Krick, vice president