The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1927-01-08

Kirk said that a reduction from
the present rates. graduating from
$1.15 a thousand cubic feet for
domestic consumers to 95 cents for
those who use 0,000 cubic feet or
more a month with a 10 cent dis
count for all users paying bills with.
in ten days, would have been posi-
BILE in 1926 had no the company
undertaken an extensive improve.
ment program.
S2,C00,O00 improvements
Early in 1926 the company started
$2,000,000 in improvements to the
Prospect plant. the larger of the two
gas factories. This will be completed
by March Is, Kirk said. Fifty old
coke ovens, built in 1909, are being
replaced by forty modern ovens.
costing $1,O00,00O. Another million
is being spent on general rehabilita.
ton.
Kirk said that when the changes
are completed the monthly pay roll
can be reduced $4,000 a month.
making a $144 900 annual saving.
This $2,000,000 is being paid out
of the earnings of the company.
The taxpayers seeking rate reduc-
tons base their hopes upon the fact
that in 1925 the compary's annual
report showed that - made so much
money that it was able to pay z5er
cent on 81, 1000 par valus pre-
ferred stock, 20 per cent on $4,000
900 par value common stock, put
$3.50 900 into the depreciation fund
and have at the same time a de.
probation reserve fund of $103, ,S40.0S
and a contingent reserve fund of
$197,995.9S.
The 1926 profits will not be made
public until the company files its
annual report with the commission.
The law requires this be done by
March Is.
The healthy condition of the com.
pan. however, is mirrored by the
ability to pay Tor $2,000,00O worth of
improvements out Of earnings.
"The Citizens Gas Company will,
in all probability, unless some un.
foreseen contingency arises, go before
the public service Commission before
The end Of 1927 and voluntarily pc.
ttion for a reduction in rates." said
Kirk
Demand for Coke
He declared that the prosperity of
the company has been due to the
enormous demand for foundry coke,
chief by.product of the company's
gas pl~nts, and said that continued
prosperity depends upon conditions
in the automobile and foundry in.
dustries, the chief customers.
Kirk said he is making every effort
to put the company on a firm basis
and effect economies which may be
passed along to consumers.
While 1t is true that the company
has had three very successful years
we must not forget the years before
during which the company labored
at a 4 C,cided disadvantage" said
Kirk.
He said that by spending $135, 900
in the Prospect st. by-products plant
the company had saved 100000 on
pay rolls in two years and had paid
for the Improvements in eleven
months.
Anent this, William p. Kappes.
special master in chancery in the gas
rate case before Federal Court in a
report filed Jan. %. 1923. declared
1.-The master finds there has been
no misuse, waste or extravaganza in
the expenditure of the funds Of the
Citizens Gas Company"
This was before Kirk was EN-
ployed by directors of the gas com
pany and before Kirk had put into
effect the improvements resulting in
hundreds Of thousands Of dollars II.
economies.
Basis of Boost
Figures in Kappes report declaring
the company was being economical
ly operated were the basis of the
setting of a $20,000,000 valuation
upon which the rates then were
boosted from 80 cents a thousand
cubic feet to $1.20.
The company since 1924 has re
duced the maximum rate from S1.20
to S1.15 and voluntarily granted two
scent discounts, totalling 10 cents
a thousand cubic feet in force now,
Chicago pays 80 cents and Detroit
! 10 cents for gas, according to public
service commission figures.
"If Chicago and Detroit can have
such low gas rates indianapolis
certainly should have as low rate
or even lower said Corporation
Counsel Alvah Rucker.
THE fl III es show that the rates
are far too high. | would be very
glad to join with the taxpayers IL
this fight. | am a public servant
and believe in serving the public Il
the best of my ability. l will be
very glad to confer with the tax
payers attorney and also am willing
to render them any assistance thai
1 possibly can"