Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1920-10-08
9O-CENT GAS rs
IN VIOLATION OBJ
CITY FRANCHISE
Document Specifically Puts
Limit at go Cents,
Critics Aver.
NEW IOOPHOLEs' FOUND

II the public service commission grants
the Citizens Gas Company the increase in
rates of from 60 to 30 cents, which com
1any officials state they intend to petit
ton for, such increase will be in direct
violation of the franchise Of the COM
pany.
Section IA of this document, approved
Aug. 80, 1905, reads, as follows:
THE parties Of the second part (gas
company and assigns further agree that
the price to be charged the consumer for
gas so to be furnished under this con-
tract. shall never at any time exceed the
sum of sixty 800 cents per thousand
cubic feet and in the event said parties
OF the second part or their assigns shall
ever increase it's rates for gas in excess
of sixty (60) cents per one thousand
q .oO0) cubic feet, aforesaid for gas fur
ntshed under the terms of this contract,
then and in that event all the rights,
privileges and franchises herein granted
shall at once become null. and void and
its right to longer occupy or use any of
the streets, alleys, avenues, public
riaces or other parts of said city may
be terminated and the city shall have
provided as upon the termination of the
franchise period
RECALL FINE IMPOSED
UNDER SAME FRANCHISE.
The franchise. OF which this section is
q part. has neve- been surrendered by
the Citizens Gas Company and that IL
is in full working force Wig demon
strated a year ago. when the board OF
1 prh'ic works. under another section,
aned the company 500 per day for more
than twenty days for failure to maintain
its product at 600 British thermal unit
standard
Further evidence that the franchise is
regarded as being effective, despite the
fact that the public service commission
has assumed certain powers of regula-
tion over the company in the past, is
contained in the fact that all of the
provisions of the contract relative to the
extension of mains, some Of which pro-
tect the gas company by requiring a
reasonable minimum number of con-
suIners to live in a district before new
rains shall be ordered therein and other
like safeguards, are followed by the
board of works and the gas company
regularly.
Further examination of the franchise
discloses that paragraph f of section
provides:
1.-The earnings Of said company shah
be used in the following order. towit /:
FIRST, to the payment, of mstured debts
and operating expenses; second. to the
payment semi-annually of said dividends
Of 10 per centum per annum and any nm
paid accrued dividends; third. to such
extensions and betterments as may be
ordered by the board OF public works
OF said city. and the excess 20 the pay
ment in whole or partial payments Of
the amounts subscribed" etc
SEE Lo0PHOl.E FOR
ORDERING ADDITIONS.
The appearance of the word better.
ments" in this section, persons inter
ested IN the maintenance of adequate
pressure say. opens a way for the board
Of public works to order additions to
the plants Of the company, which ga,
officials say are necessary before the
daily supply can be increased. without
eneountering the long delay incidental
to waiting for the public service com
mission to act
II this contention be true the board o.
works could order the gas company 70
build the additional tank and other faclli-
ties, said to be needed, Immediately so
that the public could be definitely as
sured that in due time every sudden
cold spell would not mean low gas pres
sure and let the company. and the public
service commission find way to finance
the Improvements.
such assurance has not been discover
able In any Of fthe public discussions OF
the gas problem In the last week.
Members Of the board of works. since
the informal conference with gas com.
pany men last Friday in which it was
nrst disclosed that a 90-cent rate NAV
be sought, have stated that they believe
the company. having made a splendid
financial showing last year and this
would have little or no difficulty in rails
ing the S2.J0O,O00 said to be needed for
Improvements.
The franchise gives the board of works
the right to fine the company each day
that its order is disobeyed without rea-
sonable excuse