The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1920-11-22
ASKS INCREASE
IN GAS RATES
City Council is Requested by keokuk
Electric Company 20 Raise Both
These and Street Car
Tariffs.
FACING BIG DEFICIT
This is the Statement of Company and
Engineering Experts are Here
to Make Report to
Council.

J. L. Alexander, manager OF the
Reokuk Electric company, mas ap
piled to the mayor and city commits,
sioners for permission to RAISE the
gas rate and street car fare in the
city of KeokuR Through Mr.. Alex
ander, the company states that owing
to the increased costs of material
and labor, it is no longer possible TO
manufacture and sell gas without
1 loss, at the present rate OF $L6p, In
the city of Keokuk- Mr. Alexander
also states that for nearly the past
two years the company has been IN
able to take in enough money on the
street railway to meet its expenses
and taxes, due also to increased
costs.
In presenting this subject to the
city commissioners, Mr.. Alexander
states that the immediate reason for
relief was the fact that particularly
in the gas department the cost OF
coal, coke, gas oil and freight on
these materials had increased to such
ian extent that the company faces
deficit in the gas department during
rthe coming year, amounting TO ap-
lproximately $14,000.00.
In the street railway department
utmost economy in the operation and
particularly the maintenance OF the
property, but despite these curtail-
ments in expense, increasing costs
have reached such a point that it is
estimated that at the present rate of
fare next year the company will fail
to pay its operating expenses and
taxes in the street railway depart
lment by 100000.
How Costs Differ.
At the meeting of the city council
and the manager of the Electric
company it was pointed out that as
an example of the increase in the
cost of materials-gas Oil, which is
"a material that enters largely into
the cost of the manufacture OF gas,
had increased ESQ percent during the
last year Street railway supplies
have increased from so to 800 per-
cent in cost and it was pointed out
that the company had carried the
burden of these increasing costs just
as long as it was possible to do.
Figures showing the earnings and
expenses of the entire company, in
GLIDING the electric light and power
department, were submitted to the
council. showing that the company
is not earning a sufficient sum for a
proper depreciation on the property
or anything near the normal rate OF
return on the capital invested. The
icouncil after going into the tech
nical figures in great detail felt that
it was matter on which they should
be advised by technical experts for
the protection of the citys interests.
With this idea, the council stated to
Mr.. Alexander that the city would
consider the request for an increase
in rates if the company would be
willing to have the matter investl-
gated by the state board OF concilia-
ton that was in operation during the
war
This board was appointed during
the war by Judge Wade of the United
States district court of the southern
Iowa district for the purpose OF
settling disputes between the public
utilities and municipalities, on rate
questions. So many cases had been
referred to the courts that 1t was i'm
possible to receive the necessary re-
lief without much congestion and In
order 10 facilitate matters the court
recommended that many of these
cases be referred to this arbitration
board.
Engineers are Here.
In making this offer to the COM
many the city council has acted in
q manner that is equally fair to the
city and to the company. as the board
of Cancellation consists of men well
versed in all matters of this kind.
The personnel is made up OF Dean
w. C. Raymond, OF the Engineering
college of the University of Iowa; T.
A. Potter, Mason City, Iowa, and J.
+. Ford, Fort Dodge, Iowa Dean
Raymond, the head of the commission
is an expert in the investigation of
public utilities and will be competent
to advise the city as to whether the
figures submitted by the company
are correct and whether the request
for an increase in street railway
fares and gas rate is proper
Mr.. Alexander told the council that
he had no recommendations to make
as to the exact increase in fare or
amount by which the gas rates were
to be increased. He submitted the
figures of the company's showing for
the past year, with the idea that the
rates should be established by the
city in accordance with the best
judgment of the commissioners Mr..
Alexander told the council that the
street railway situation was such
that in order to make reasonable
rate of return and depreciation on
the large investment, the figures
showed that there should be a con
siderable increase in fare.
The company agreed with the city
council to permit the investigation
Of the situation by Dean Raymond
and his associates and during the
week it is expected that Dean Ray
mond, with his assistants will care
fully examine the books of the COM
lpany for all departments and go over
the physical property of the lighting
and power. street railway and gas