Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1922-04-22
INCREASE OF
| GAS RATE TO
i. s. COURT
Citizens Company Is
Denied Another
Hearing.
$925,OO0 IN BONDS
Authorized by Board
Which Refused
Boost.
$925,OOO IN BONDS

The Citizens Gas Company was ex@
pected to take its case before the Federal
Court late today following denial OF its
petition for rehearing by the Indiana
Public Service Commission.
Authority for bond issue Of S925, 600
was granted.
move to have q receiver appointed ia
before the Marion County Superior CouRt.
Doubt in the good faith of the receiver
ship suit'was expressed by attorneys Of
the company appearing before the COM
mission when they said that it had been
learned that the purchase Of six shares Of
stock in the gas company had been made
the DAY before the receivership suit Was
filed.
The bond issue is to meet due bank
loans and taxes and will not increase the
amount Of outstanding Indebtedness, it
was said.
BASIS OF ACTION
IN CONSTITUTION.
Basis Of action before the Federal
Court will be on the ground that main
tenanee Of the present rates for gas In
Indianapolis is contrary to the United
States Constitution Fourteenth Amend
ment which is designed to prevent con-
fscation of property.
Contemplated action on the part Of the
gas company Is similar to that of the Ft
Wayne Telephone Company which re-
Gently obtained an increase in rates
greater than that allowed by the com
mission and obtained protection from in
tereference and Jurisdiction TO regulate
its business by the commission on an
order of ths Federal Court The case
Of the TT. Wayne Company is the first in
the State to undertake to supereede the
ruling of the commission in that manner.
Several reasons were set forth In the
order denying the gas company the in
crease OF 80 cents a thousand cubic feet,
asked In Its petition. Principal among
these reasons was that a larger decrease
In consumption of gas, than estimated
by the company, would offset the benefit
gained by a higher rate, economies Of op-
Grafton suggested by the commission have
not been put in effect useless expenditure
Of money in refttlng a building which IL
not owned, have teen made and that an
improvement of the coke market may i'm
prove the situation Of the company.
WOULD PUT BCRDEN
ON GAS COMPANY.
1t IS doubtful, according to the order
set forth by the commission, whether "ths
90-cent rate will be sufficient, bat under
all the circumstances surrounding this
company In this proceeding, the commits
sion is Of the opinion the doubt should
be resolved against the company and
not the consumers
The purchase of prodigious quantities
of coal and oil at high prices in the face
of rapidly falling prices, and failure Of
the company to dispose of 11S000 tons
OF coke, which have been allowed to ac-
cumulate, are cited as reasons for the
present serious financial condition of the
company.
A possibility, IL not a probability that
the gas company can get by is seen by
the commission If rigid economy is prac-
ticed and efficient management exercised.
An improvement Of the coal market and
the continuation of the present low prices
for coal and oil with prospective reduc-
ton In freight rates, the orders says, may
make 1t possible for the company to oper-
ate in a fairly satisfactory manner.
The public relations of the company
are subject for criticism on the part Of
the public service commission. Referring
to previous hearing Of the company
for an increase, the order says
THE commission indicated to the pc
titioner that radical changes should be
made in it's management and policies in
oTueE tnaC economies OIL operation might
be effected, and more particularly in or
der that the relations Of the company
with the city and its consumers might be
placed on a more proper and desirable
basis. These changes of policy and man
agement so indicated have not been made
and the public relations of the petitioner
have not been improved"
The increase in rate from so cents to
90 cents granted May 4. 1921, resulted in
a decrease of u per cent in the amount of
gas consumed. and the commission ex-
presses the belief In its order that the in
crease asked of 80 cents would result in
a decrease greater than IL per cent in the
gas consumed.