South Bend news-times. (South Bend, Ind.) 1913-1938, 1914-11-07
PERFECT PLANS To
CONTINUE FIGHT
FOR LOWER RATE
Petition Filed by South Bend
and EIkhart Discussed at
Meeting in City Hall Friday
Night-WiII Employ Expert.

of service from the Indiana and Mich
lgan Electric Co.. the local city cOun-
ell board Of works. officials from Elk
mart and citizens 20 the number Of $50
met in the city hall Friday nj ght and
discussed the case now pending with
the Indiana public service commits
sion. In that case the two cities have
filed petition with the Indiana body
requesting that the present ,lleged
eXOI bitant rates be lowered or the
commission at least make an investi-
cation into the physical valuation Of
the property Of the electric company.
In letters from the mayors OF Sc,
eral OF the largest cites of the
country, In wnIcn the electric rate IS
appreciably lower than il is in this
city, Mayor Keller lea in a discussion
that resulted in the passing of a resO-
luton that the city engage expert at
tOrneys and engineers TO present its
side of the case when the commission
was ready TO dispose Of the matter
I'm these letters" said the mayor
in his opening remarks. the mayors
OF other cities with whom / have cor
responded state emphaticaily that IN
the securing and efforts TO secure
lower rates from public utilities
through the public service commIs-
siOns of their states, cities have never
had their side OF the case in present
able form. The fact that three valu-
must be taken before the commission
can proceed with the case has in many
instances prohibited the correct and
just settlement of the identical ques-
dion that at present faces this city"
Three Points Involved:
IL Developed after talks by City
Atty. Seebirt, City Atty. Hall Of Elk
hart, S. r. Pettengill and others, that
the successful ending of the case for
the city meant the providing of three
essential points: The correct valua-
ton of the company itself, from its
plants TO the minutest part of its en-
CINE; the determining OF the cost Of
operation for a certain period, the
cOmpanys annual income and if that
income is within the bounds of rea-
son: and lastly, what charged rate Of
service will be adaptable SO as to be
in keeping with cost OF operation and
the income OF the company.
IF the city" said Mr.. Seebirt, "can
prove that the cost of operation OF
the Indiana and Michigan Electric
co. is small in comparison with the
rate at present being charged by the
company, chances in its favor for
successful war against the comp ~
are many. II also, the city through
the hiring of eminent authorities upon
matters Of like import, is enabled TO
prove mat the income of the Indiana
and Michigan Electric Co. which has
DGtn eoLliildAGu at btAWNtA PoNVfVVv
and S1.0O0,0O0 annually, is large
enough 10 withstand a lower rate and
still leave the company a balance that
viii repay its furnishing the city Its
power. the case will be won"
one important feature that was
dweit upon at length, and OF winch
many influential citizens present de-
clared themselves in favO or, was the
question as TO whether the city should
engage expert advice in its battle for
lower rate.
Need Expert Advice.
"'The taking Of the valuation Of the
company" said Atty. Hall of Elkhart
"wlll entail much technical skill En-
gineers for the Indiana and Michigan
Electric Co. are of the most expert
enced in the United States. They VIII
have both the city and the commits
sion at their mercy should they see
nt TO put someshinS over on South
Bend and Elkhart
"Flkbart and South Bend can hire
lust as competent talent The cost Of
waging the battle against the com
Dany will apprOX.m $4,000, accord
Ing 10 the figures read in the letters
by Mayor Keller. But II we succeed
in lowering the present rate of 10
cents a kilowatt even one cent il
means a saving of just that amount
TO the city Of South Bend every year.
A. H. Rice Of the board of works
pointed out that the city at present
was using 100000 kilOwatts annually
merely in the lighting of tbs business
streets. At the present rate the an
nual cost 10 the city is $4,000.
And III the city continues to grow
in the next ten years-the length of
the present cOutraCt-at tbs eXpira-
ton a saving Of one percent will
mean an annual saving Of approx
mately $4,000
Jere Hagerty was the first of the
men present 10 draw back in the dis
cussion.
Means Extra Costs
81 personally think we people are
taking extreme measures in this
case" said he THE hiring of these
attorneys would mean increased tax
with the probability always in view
that the city would not obtain the
decrease in electric rate il asks. The
commission can use its own appraisal
figures. and IL we don't know whether
they are right or wrong, what can we
do about it,"
The question was referred to City
Atty. Seebirt who explained that the
commissions figures. those CLEANED
by the city's hired experts and those
taken by the company itself would
all be used when the case was tried.
1T viii merely be matter OF prov
ing that ours are the nearer correct"
said Mr.. Seebirt
II was stated that the appraisal OF
the cOmpany's property would take
up the better portion OF three months
The company owns four power plants.
three hydraulic and one steam plant.
An inventory Of every tangible be-
longing o. all four plants would he
necessary. the detail Of which would
make the work long drawn-out and
slow.
Two Firms Employed
The firms of Jackson x Jackson OF
Chicago and the Dean Cooley Co. OF
Ann Arbor Mich. have been retained
by the electric company 20 take the
valuation OF its property. Both firms
are engineers with national reputa
ton in projects similar 10 the one at
present before the South Bend munic-
ipal authorities.
IL was shown that practically every
other CITY in the state had lower max