The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1914-01-31

Power Company and approved by the Public
Service Commission in indianapolis last Monday.
The Light Heat & Power Company did not
divide it's report under the two heads OF Gas and
Electric Current which was submitted to the
Public Service Commission and the city's legal
department some time ago. This was failure
to conform to the law governing public utilities
It is Just possible that this present act throws
light on that omission. If the Company is now
able to establish minimum valuation Of it's en-
tire plant it may hope to saddle the large proper
ton of this valuation on the natural gas depart
ment of its business. If it can succeed in doing
that it would then have basis on which to de-
mand an increase in it's Natural Gas rate.
To an impartial observer, the Company's re-
cent action has all the appearance of being step
toward this OF course, it is possible that some
unknown factor may be revealed which would
throw different light upon it, but all the facts
now ascertainable offer firm ground for SUCH
suspicion.
According to the Company's own officials,
financiers would not float the bonds until after
the Public Service Commission had o. KID. them
Whv was this? According to the statement OF
the officials themselves, it that they wanted
the Commission to give it's Judgment as to the
valuation of the plant. In other words, in the
very act of approving this bond issue, the Public
Service Commission has tacitly acknowledged
that the plant of the Light, Heat & Power Com
panv has at least valuation of $850,OOOOO.
Suppose now that at some future time, when
the Public Service Commission places valuation
on the local plant for rate fixing purposes, 1t dis
covers it's value to be less than $S5OOOO.OO, the
Light, Heat & Power Company could appeal to
this previous act on the part of the Commission.
~ 4n1 ohnrc If hn
Commission, Gentlemen, when you authorized
our $3.50, 100000 bond issue you fixed minimum
valuation on our plant of that amount. How
then can you reconcile your present figures with
the figure which you then approved?'
Another important factor in the present sit
patton is that the Public Service Commission does
not seem to have made careful examination of
the nature Of the Indebtedness which this bond
tissue is supposed to cover. The public utilities
law explicitly requires that such an examination
be made
And this requirement is just: for it is of the
greatest importance that the Public Service
Commission know the nature of such an indebt-
edness It may be that part of it is due to sheer
msmanagement it may be that part of it is due
to the buying out of competition: or it may be
due to other familiar reasons any one of which
could not possibly authorize the adding of such
an indebtedness to the valuation of the plant. If
the Light, Heat & Power Company's indebted
less is of such nature and if the Public Service
Commission recognizes that this Indebtedness is
g. part of the Company's valuation, it would sim
ply mean that gas consumers in Richmond would
be paying rates based on a valuation that does
not exist.
| But even if the Commission s failure properly
to investigate the nature of this Indebtedness
does not prove to be as serious thing as it ap-
pears to be- the fact still remains that the Public
Service Commission has acknowledged a mini
mum valuation on the local plant This seems tc
have escaped the attention of City Attorney W
A. Bond, but he and the city administration have
both come since to realize the meaning of it. They
propose to every possible to persuade
the Public Service Commission to reconsider its
act which seems to have been so hasty and so ILL
advised.
The door is locked after the horse is stolen
but it is to be hoped watchmen may be able
| to re-capture the horse.
| THE STIRRUP-CUP.