Arkansas State press. [volume] (Little Rock, Ark.) 1941-1959, 1954-04-09
AG IS Report
Cites Increase
IN Cost Of Gas

The cost Of natural gas which
Arkansas Louisiana Gas company
purchases for distribution has
snore than doubled since 1910. it
was pointed out in the company's
a15S annual report to stockholders
fnraeased today.
These higher gas costs, together
with other increased operating
sruStf, were incorporated in q
series OF requests to state regula-
nnry bodies for rate increases
sturing the past year and "a con-
xinuing series of studies is being
rnzde" looking to the need for
tazarther rate adjustments, the re-
ilnuf said.
Competition for the purchase
saf gas in the southwest has in
s-reased sharply in recent years
t1he report said. resulting in IAN
ezpward trend in the price Ark
ansas Louisiana must pay to ac-
eEuire the new reserves" At the
aame time the average price Of
sEaE which the company charges
the residential customer has re-
-rmsined virtually unchanged, the
sHpsrt noted.
The addition of approximately
in.UOD new customers during 1853
Wrought Arkansas Louisiana's
ssantal customers served to a
new high Of 225,000 at the end
sssf the year, the report said. Dur
ling 1853 seventy-three real es-
t4ate subdivisions were connected
tn She cornpany's lines, and the
following towns were provided
with gas service: Heflin, La; De-
-Kalb, Malta, Judson, Karnack.
ann Ore City. Texas. and Gallon
md Hampton, Ark. At the close
Df the year a distribution sys-
lem was under construction for
Foreman, Ark.
Arkansas Louisiana now serves
LBS communities in Arkanas, Lou
Ssaana, and Texas. has approxi-
rDHteiy 2,lO0 employees. and dur
Hnx 1858 the company's total in
westment in plant and equip
Enet went over the $100000 900
xnzrk, the report said. s
Prior to 1868 Arkansas Louisi-
ana was a wholly owned subsidi-
arys.af Arkansas Natural Gas
--orp. During the past year Ark
ansas Natural distributed to its
common stockholders the common
:saocs III ALG, with result that
4ALG now has approximately 49,
n0o public stockholders to whom
she 1853 report is the first an
saual report Of company activi-
dies"
From this reorganization Ark
ansas Louisiana emerged as an
Lrtegrated gas company = produ-
cling, purchasing, processing,
transporting and distributing ma
r1ral gas.
The company reported net in
vnrnne OF $2,772,25a for 1853, or the
equivalent of 70 cents per share
cav the 1901 500 shares of COM
mSn stock outstanding. The re-
5srf noted additionally that be-
ezsase the reorganization of the
r,urnpany, which included trans
Ssers asf various properties, was
4 ~Tsrmated on March 81, 1858
IKE earnings for 1858 ARE not in
4traaIve of a full years opera
Sxrlg Of the present company,
xxar are they comparable to ac-
.gual earnings for prior years
Ia dividend of IL 10 cents per
asnare was paid in the fourth
quarter of 1858. the report said.
Noting a strong and growing
@rend to an Industrial economy
In the tri-state area which ALG
nerves, the company reported
Vsxat during 1858 approximately 40
industries were connected to the
s1rmpany's lines.
approximately $l1,2oO,00O was
invested by Arkansas Louisiana
strumg 1858 in facilities necessary
sy serve its growing numbers OF
customers and to acquire more
Sss reserves in order to maintain
zn adequate reserve supply. A
! ruufinuation Of this program is IN
ryrurpecf in both 1854 and 1855,
III was predicted.
aAyrsse annual additions to the
uxunpany's gas reserves have been