The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1909-02-13
FOR THE DEFEAT
UTILITIES BILL
Local Board of Works Men,
Der Appears Before Ses-
sion of the Joint Corpora
tons Committees.
COULD CUT CITY RATES
TO A RUlNOUS DEGREE
He States That Light, Heat &
Power Company Would Be
Able to Undermine the Mu-
nicipaI Plant.

/
utilities bill concocted by the public
utilities people of Indianapolis and
introduced in the house by Garrard. of
Knox county. was considered at a
joint meeting of the house and senate
committees on corporations. Other
bills introduced on the subject were to
have been considered. but. the 'utilit-
les own" provided such fair game
that nobody remembered the otner
bills until time to adjourn. Present
to defend the measure were J. v. Fart
man, secretary of the Indiana Manu-
facturers and Shippers association,
torney d. P. Williams. nominal drafts
man Of the bill. When the attack on
the measure had become earnest. how
ever, neither of these had anything to
say. ...
B. B. Johnson, of Richmond. men,
Der of the executive committee of the
Manufacturers and Shippers associa-
ton, and member of the board of pub
lie works of Richmond. appeared, so
he said, to set the association right
before the legislature. The bill was
not real product of the association,
he said. and the executive committee
had not been unanimous in its indor-
sement. There was feeling" he
said, that it came from gentlement
who are in public utilities themsel-
YES"
Not Work Of Night.
Mr.. johnson explained that as a
member of the board of public works
of Richmond, he had charge Of the
municipal lighting plant. He was a
manufacturer and shipper, he said.
but when he Joined the association
in this sort of business. Nothing in
this bill has anything to do with man.
ufacturing and shipping"
He believed, he said, that inasmuch
as New York and Wisconsin had each
had men abroad for long period
studying the subject, Indiana ought
not try to do the same work in a
night.
Taking up the bill in detail. he
whereby no franchise should be grant
cd to utility until the town or city
in which it was to be located had
granted the same Referring to Sec
ton 6, he said: They told us on their
holy oaths that there was nothing in
the bill to abrogate any existing con-
tracts, yet under this section they
provide that every corporation that
has an unsatisfactory contract may
slide under the sheltering wing of this
measure, while any that is satisfied
may stay out" 1t was like the story
of the turkey and the turkey-buzzard,
he said.
''Who is the co-contractor?" attor-
ney Williams asked.
The city, Johnson answered.
mo, the state.' said Williams.
Lawyers Disagree.
The lawyer members of the COM |
mittee expressed disagreement with |
Williams theory.
johnson pointed out what could |
happen under the bill in case of the
merger of three or four kinds of util
tiles. The permission granted for
''all going and intangible"
values, in making rates that would be
q fair return on the investment, he
said, would mean that the merging
would claim fairly a right
to combined valuation of three or
four times the actual value OF the
plant. On this they could legally
charge exorbitant rates. A reasonable
provision, he said. would be that
there should be fair valuation of the
merged properties, considered in the
light of the purpose for which they
were used.
A New York syndicate, he said, had
been seeking In every legitimate and
way to get control Of the
municipal plant at Richmond, but had
not succeeded because the plant had
been a success, and the people were
for it. Under this bill. he said. the
syndicate's plant could cut rates to a |
ruinous degree and break down the |
plant
"Win you state. please" said Gar
rard. "a provision that would prevent
this?'
well. you'll never prevent it |
through a provision for control of
maximum rates only" answered John |
SON. actual rates should be con- |
trolled. as they are in New York and |
Amendment for Control.
He suggested an amendment, in line /
with the Wisconsin law, whereby II a I
utility does not chine under the pro
visions of the act, the commission /
shall have the power after q petition
rom consumers and after a public /
bearing. to fix rates and control the
service
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