The West Virginian. [volume] (Fairmont, W. Va.) 1914-1974, 1921-07-19
GAS COMPANIES
CREATE SHORTAGE
AND PEOPLE PAY.
tconilnnsd from page onsl

IMAM pneipurth OF the total area
OF West Virginia, more than four
flfths of which territory Is controll-
ed W the seven companies. The
seven large companies referred to
are. Hope Natural Gas company,
Pittsburgh and West Virginia Gas
company United Fuel Gas com.
pany Reserve Gas company, Car.
ncgie Satnral Gas company, Co
lumbia Gas and Electric company.
Mauutactnrefs' Light and Heat
conipany The Hope Natural Gas
conpary Is by far the largest and
controls 1,g2s,s7o (1919 figures)
acres!
Gas Consumers Pay Rentals.
During the entire time that the
gas companies have been operat-
ing ~ West Virginia less than l..
100000 acres have been developed,
and sood portion OF this terri.
tory considered as being developed
n only partially SO; the other g..
oo0,QQ0 acres are lying idle awaiting
me pleasure OF the gas companies.
And right here Is where the scan.
dalods part comes in: The con.
sumers have to pay the rentals SO
that the companies may hold this
vast and nndeyeloped territory. be.
ing in round figures approximately
1000 900 per year, exclusive OF
ROYALTIES paid on the developed ter.
ritorys
Ihe gas companies paid for these
ieAsehoIds In the neighborhood Of
50, 100000; and hold them at an M.
praised value Of about 5000, 900.
They hold these leaseholds so that
they may control the gas industry
IN West Virginia and prevent com
petition, creating a yeritable MO.
nopply The Public Service com.
mission permits the gas companies
TO charge this rental expense ana
royalty expense to their general
operation expense account, which
must be paid by the consumers
THIS charging the consumers with
an expense OF this nature is entire.
~ ~ ccordance with the practices
or che gas companies and the rec.
ORD Of the Public Service Commits.
sion
Paying for Their Own Slavery.
Y simply means that the consrlr,.
srs are compelled to pay for the
building up and support of mo.
nopoly SO that in later years their
children and their children's chill.
dren viii have to pay a high rate
for gus. Il would seem that il the
gas companies are permitted to
control such a vast amount Of Ter.
ritory they should at least be ex.
pected to pay for 1t, and not the
consumers. The consumers receive
NO benefit from these leaseholtls,
They would be served with gas by
any company which might operate
them but they are forced to pay
the rentals Just the same. 1t is al,
nntair charge on the consumers.
but that is OF little moment to The
s1blic Service Commission, which
can see only the interests Of the
eas companies and are blind 10 The
rights OF the public. There is no
reason at all why the consumers
should pay for something which
they DO not get, and which only
enhances the values OF the gas
companies They are called upon
TO pay enough In the way of operat.
ing expense for these companies
tthputsadding the rentals OF lease
nolds-s omething which is entirely
tnfetgn TO their interests and det.
rimental to the expansion OF the
gas Industry.
Commissions Decision.
n its decision granting the Hone
Natural Gas company the right tc
increase It's rates the Public Ser.
vice commission touched upon the
matter OF leaseholds OF that com
pany In the following manner: al
may be Pertinent to suggest in this
case however, that the annual
rental charges for carrying gas
Aease hoids have been charged AND
AltE PROPERLY CHARGEABI,E
TO EXPENSE OF OPERATION,
and as such have been paid by an.
pltcant's consumers. And II by
reason OF any long tenure thus oh.
tanned such leases have acquired
any value in addition to the orig.
mag cost, whether speculative or
otherwtse. 1t would seem that In
eqnity and good conscience appli.
can't patrons and consumers. who
nave contributed through rates for
ennual rental charges MANY
INES THE SUM ORIGINALLY
EXPENDED IN ACQUIRING;
SUCH LEASES, should be entitled
70 share equally with the applicant
Y the benefits arising there.
rom
What ts true of the Hope Natural
cas- company Is true also OF all the
other large companies. The Pub.
~ Service commission says that
any benefits arising from the long
tenure OF the leaseholds should be
shared equally between the con.
sumner and the producer, cince the
consumer has paid the rentals:
and. N order to justify this posi-.