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

To Mayors, Councils, Newspapers
and Gas Consumers
Upon the Logan SyStem-
Unfortunately so many inaccuracies
occurred in the telegraphic press dis
patches from Columbus of the hear
mission Of Ohio, January 9Th and 9th,
in the matter Of the new schedule of
rates filed by the Logan Gas Com
pany, that correct account Of this
hearing is necessary in order to un-
derstand the showing to date.
Such report has been requested by
several officials and newspapers up
on the Logan system and in carrying
out our policy Of freely discussing all
matters touching our service and our
ability to maintain it will frankly
state the salient details Of just what
occurred. In the first place-it was
mistakenly reported that "an army Of
city solicitors, mayors, and attorneys
appeared to contest the issue" The
facts are these: There was no multi
tude Of objectors, only one town, that
Of Bucyrus, was in court by reason Of
a legal protest filed by its city coun-
ell, and aside from the Bucyrus at
torneys only three attorneys repre-
senting three other municipalities sat
at the trial table and participated in
the proceedings. One of these stated
his city had taken no action for or
against the company's request. The
so-called ''Whole army" Of city solic-
itors, mayors and attorneys as report
ed in some Of the press dispatches
consisted (outside Of the above men
toned participants Of five city So
licitors, two mayors, one service di
rector and four citizens, most of them
friendly observers in the audience
Few indeed were protestants.
A. j. Newman, Comptroller of The
Logan Gas Company for eleven years,
whose duties involve supervision of its
finances, presented number of ex-
hibits
Exhibit "a" was a condensed sum
mary Of the cost of gas service and
a deficit Of company calculated after
including the proposed service charge,
earnings, return, depreciation, etc,
upon the valuation of SAL ISL ,043. 90
by Ford, Bacon & Davis, Inc. The
exhibit showed that for the year 1924,
this deficit was $4,587 ,527.94; the
average deficit for the two years
1924 was $4,336, 1874; the aver
age deficit for five years 1920-1924
inclusive was $4,500,337. 7.92.
Exhibit "B" was a condensed sum-
mary of the cost Of gas service and
deficit in company's own city plants
after including proposed service
charge earnings, return depreciation,
etc., calculated on valuation made by
Ford, Bacon & Davis, Inc. This eX-
hibit included all items of gas pur-
chased, prediction, transportation and
transmission, distribution, property
value, return, profit, depreciation, con-
tingencies. After taking into consid-
GRAFTON the amount received from gas
sales and the estimated amount to be
realized from proposed service charge
the total cost of gas service to the
company's own towns exceeds the es-
timated receipts by the following
amount: 1924, S2,457 7,480.25. Average
of the past two years 1923-1924, $2,
1914 1851; average for 5 years 1920
1924 inclusive, $2,154, ,138.45.
Exhibit &C" sets forth the items of
expense entering the computation of
the service charge not including pro-
duction and transmission system eX-
pense or investment. This exhibit
showed that the total cost per con-
sumer for the year 1924 was 1919;
and for the years 1923-1924 was
$500 or an average monthly ex-
pense per consumer applying to serv-
ice charge of $1.60, or justifying a
rate Of 90 cents plus per thousand
cubic feet for gas; or service charge
Of $1.61 plus, if the present rate for
gas is to be continued.
During the past few weeks in some
quarters the argument has been put
forth that Ohio consumers Of the Log
an Gas Company were not concerned
in the business pertaining to the pro-
curement Of gas from West Virginia
and its transportation to serve con-
sumers in Ohio and in Indiana. 1t was
claimed that it would reduce the cost
of gas produced and sold in Ohio. Mr.