Newark leader. ([Newark, Ohio]) 1917-1946, 1925-01-23

Newman presented Exhibit "E" which
was condensed summary Of the cost
of gas service and deficits in COM
panys own city plants in Ohio includ-
ing the proposed service charge earn
ings, and eliminating gas purchased,
operating expense, return, ETC., in
connection with gas sold to other COM
panies on the "E" system, or from
Sugar Grove, Ohio, to Muncie, In
diana. The conclusion Of this exhibit
is that, by the elimination of the in
come derived from the "E' system, or
Dayton-Indiana Line, the amount re-
ceived from sales of gas from COM
pany's own towns north of Sugar
Grove, plus estimated amount to be
realized from proposed service charge
is less than cost of gas service to
company's own towns by the amount
of $3,006, ,098.75 as against $2,457,-
480.25 which includes receipts from
gas sales on nthe "E' system.
Other exhibits showed the total
metered gas sales and total gas pur-
chased, total gas produced yearly and
average pei well, total number of pro-
ducing gas wells at the end of the
year 1924, all Of which indicated the
gradual but sure decline Of natural
gas.
The Commission ruled that under
the law the company is entitled to
earn reasonable rate upon the true
present day value of the property
used and useful in the business.
1t was shown in Mr.. Newman's evil
dence that the Logan Co. paid only
4ft dividend upon its capital stock of
$20,000,000 in 1924 and 1923, which
necessarily would mean less than a
2R dividend upon its present day val
uation Of SAL ISL ,043.00; also that our
surplus heretofore accumulated has
been re-invested in wells, lines, sta
tions, etc, for the good of the serv-
ice.
On Friday, January 9th, the Com
mission continued the hearing until
February "a, 1925, because it's calen-
dar is full to that date, but will hear
it sooner if vacancy occurs in calen-
dar. The Logan Co. protested delay
in the interest of the 67 cities and
towns not protesting and because it
cannot proceed with new gas develop
ment until this issue is settled.
AS we have heretofore advised our
consumers the rates in effect since
1919 will not warrant or permit the
development Of the new eastern Ohio
fields; and it must be evident to all
that with this delay and the uncer-
tainty as to when relief may be af-
forded the company's plans for de-
veloping the new field to the east for
further development in the old fields
must necessarily be delayed or aban-
dond because of inadequate rates, and
this is certainly not advantageous to
the consumers or the company. .
1t should be kept in mind by all
persons interested that only one mu-
nicipality out of seventy on the Log
an system officially opposed the serv-
ice charge, and that officials, cham
bers of commerce, labor organizations,
service clubs, and gas consumers
from all communities unqualifiedly
commended the company's proposal.
The basis of such opposition as has
developed was not founded upon an
economic consideration, that is, upon
a consideration Of the company's fl
nancial and operating conditions, OBJ
tanning gas supply for consumers,
or on merit. These are the controll-
ing conditions in rate determinations
and were set forth fully and frankly
in our publicity with which you are
familiar
THE LOGAN GAS COMPANY.