Hammond Times, Volume 13, Number 45, Hammond, Lake County, 2 August 1918 — Page 10

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THE TIMES.

Friday, August 2. 1313.

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The Company has given the State Public Service Commission notice of its intention in the form of a petition for authority to put the asid charge into effect during the prevailing period of abnormal prices for labor and material entering into the cost of producing and distributing gas. Inasmuch as a large majority of the citizens of Hammond, East Chicago, Indiana Harbor and Whiting are affected, the Company desires as a matter of fairness to the people to tell them the facts in the case. It wishes to advise the people frankly of the reasons why it must have some increase in revenue, and desires in this statement to place the facts fairly before everyone, so that it will be clearly understood why it is absolutely necessary for the Company to temporarily make some increase in its charge for gas. It is not the intention of the Company to change the existing gas rates, but to temporarily add a surcharge as a means of providing additional revenue. The cost to the Northern Indiana Gas and Electric Company has been steadily increasing during the past year by reason of the rising cost of everything entering into the manufacture of gas, notably coal, oil, coke and labor. The operating expenses for 1917 cost the Company about 46 per cent over 1016, all of which loss the company has stood and the estimated expenses -for this year, 1918, will

exceed the 1916 expenses by about 67 per cent. The Gas Companies as well as other public utilities throughout Indiana and over the country generally are increasing rates in order to come somewhat near meeting the abnormal cost of operation. The Public Service Commission of Indiana has already given authority to a large number of companies in the state to add a temporary charge to continue during the war emergency period. Hundreds of Gas Companies throughout the country have already increased their rates and a great per cent of the remaining Companies have either given notice of their intention in the form of a petition for authority to put increase I rates into effect, or are figuring on doing so in the near future. These increases are made only because there is no other choice in the matter ,and to make possible to come somewhere near meeting the abnormal cost of operation. Everything a gas company buys has increased in price from 25 to 300 per cent as a result of the war, and it is impossible for a Company or individual engaged in any kind cf business to exist under such conditions unless selling prices are adjusted to meet buying prices. -y The Company cannot continue to sell gas below cost and stay in business. The company does not, however, ask that, the whole burden of these high prices be shifted to its customers. It is willing to

carry a fair share of same itself. It is not asking to be relieved of its just share of the war burden. It has borne more than its share in the past year and will continue to bear its share as long as the war lasts; all it wishes is to be relieved of some of that portion over and above its share which would otherwise crush it, and it believes it may reasonably ask that its customers bear a small share of its excess costs. The public's chief interest in the Company is in the service it gives, and adequate service cannot be rendered on inadequate rates. As previously stated a large number of companies in the state have already increased their rates and most if not all other Companies will soon have to do likewise. The increase proposed is in the form of a temporary surcharge of 15 cents per thousand cubic feet, which means in so far as its customers are concerned for the average family an increase in the cost of their gas of lc per day, an amount extremely small in comparison with the increase of the cost of every other article of food or clothing required to be purchased today. The aggregate of this increase will not by any means amount to as much as the increase cost to the Company over normal times, but will assist the Company in defraying a part of the increased cost to it due to war prices it is compelled to pay for everything it has to purchase.

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