The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1920-11-22
GAS COMPANY.
WANTS BOOST
IN ITS SCHEDULE
Officials Tell Public Service
Commission Artificial Gas
Costs $2.O5 a 900 Cubic
Feet Delivered.
PRESENTS ARGUMENTS

INDIANAPOLIS. Nov. 22.-Natural
gas delivered in Richmond. costs the
company 871h cents a 1000 cubic feet
and the artificial gas costs s205, ac-
cording to evidence presented today
by the Richmond Light, Heat & Power
company, before the Public Service
Commissions supplemental hearing
for revaluation of the gas property
and the establishment of new gas
rates for the city.
The company submitted several long
statistical tables relating to it's oper-
ations and properties and asked that
the commission fix the values of the
gas properties at sS63765, which
amount, the company officials said.
was the original cost. Present day re-
production costs, they asserted, make
! the properties worth $1.544,9S4 New
rates, it was said, should be fixed to
give "a fair return on the original
cost and mo specific charges were
suggested.
johnson Testifies.
Nimrod Johnson, manager of the
Richmond plant, and S. Nj. Wheeler,
a statistician, were the only witnesses
at the opening Of the hearing which
continued this afternoon. with indica-
: eioAis' IAtaI ~ "oulO Sohll1uC loIIOlIo"
Both witnesses testified regarding the
statistical tables submitted to Com
missioner Johnson, who was in charge
of the hearing. The city also was re-
presented by counsel. but the early
testimony was almost exclusively an
| explanation of the company's evidence
The company Contended that it suf-
fered loss of net income during the
three years 1914 to 1916 by the low
| rate charged for natural gas, these
years being described by it as the
period for developing the natural gas
business in Richmond During thai
period gas sales increased almost
! threefold, it was said.
Cost Of Fuel.
! The consumption was $1,000. 900
feet, at total cost of 1852, ,622 to
/ Richmond consumers. This quantity.
if sold at the old artificial gas rates
d; of 1000 feet, would have cost the
consumers $533,3S0 more, the CON-
pany's witnesses testified.
| For the cost of development Of the
natural gas business the company asks
return be given it of $4,000, which
amount, the witnesses said, was about
one-fourth of the indicated saving to
consumers during 1914 to 1916"
City's Contention
Will Keller. city attorney Of Rich
mond, claims the Light, Heat and
Power company's plant has a valua,
tion of $523,397 for rate-making pur-
poses.
Joseph Wheeler. an auditor for the
| New York corporation which owns the
Richmond gas company, submitted fig.
ures showing that the company had
operated at a heavy loss since it be-
gan its natural gas service in 1914
His figures fir the years 1914, 1915
1916, 1917, 1918, 1919 and the first
eight months Of this year showed a
net operating income of s16S,054; nee
essary net income, s343,2S2; total def.
cit. $175,22S. The report showed that
1917 was the only year the company
operated at profit, its return for
that year being $3,SS4.
w. H. Johnson, manager Of the
Richmond company, testified that gas
making tests conducted Saturday and
Sunday indicated the company was
prepared to manufacture gas in an
adequate manner on short notice.