The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1914-02-02
VALUATION OF CITY
PLANT To PRECEDE
REDUCTION IN RATE
Utilities Commission Bases
New Schedule on Valu-
alton of Plant.
L., HI. & POWER PLANT
is TO BE APPRAISED
New Rate Probable Before
State Makes Inventory
of Plant.

That the Indiana Public Utilities
Commission will not permit the Rich
mond Municipal plant to permanent
ly put into effect its proposed rate
reduction unless such a reduction is
justified by the plants valuation, and
that this valuation will be taken at
the same time an inventory of the
Light, Heat and Power company is
taken. was the announcement made
Saturday by Chairman Duncan TO
Mayor Robbins and City Attorney
Bond
Ii is probable, however, that the re-
duced rate schedule the city will pc
tition for will be allowed to be placed
in operation until the commission has
appraised the plant.
0uncan's Statement.
This was the statement made by
Judge Duncan in connection with the
city's contemplated petition for a
rate reduction:
We want the city of Richmond.
not the municipal plant, to file q peti-
ton for the establishment of electric
light rates in Richmond, and We will
value both the Light, Heat and Pow
er plant and the municipal plant at
the same time, and fix the rates on
those valuations The position of the
commission will be to place the mu-
nicipal plant on the same basis as a
privately owned plant. The municipal
plant in Richmond would never have
been built If the city of Richmond
had not loaned its credit to float the
bonds. Both the municipal and Light.
Heat and Power plants have sinking
funds, neither of which will be dis
turbed by the commission. And aft
er the indebtedness of the municipal
plant is paid off, the earnings of the
company will go to the city treasury
This action is justified by the fact
that the tax payers of Richmond are
rightfully the stockholders of the mu-
nicipal plant, and any profit accruing
from the transaction of the business
would go 10 the stockholders rather
than for reduction in rates. After
your petition is filed, We will place
valuation on the municipal plant,
and, If after all expenses are paid and
the sinking fund is taken care of.
there is still profit above the actual
valuation of the plant, We will permit
a reduction in light rates. If We did
not take this position, il would mean
an elimination of all private owned
corporations where they are in COM
petition with municipal plants.
would suggest that the municipal
plant file a petition at the same time
for establishing a temporary rate as
you have suggested until the COM
mission can fix a permanent rate on
the valuation of the plant"
To File New Schedule.
Today City Attorney Bond was to
file with the board of public works
the new rate schedule of the munich
pal plant, to be submitted in turn TO
the state commission. but he announc-
that owing to the action taken by the
commission on this matter he was
not prepared to file the schedule for
the time being.
The local municipal plants petition
for rate reduction will be the first to
be received by the commission. and
that body proposes to make rulings
in the case which will be of state
wide importance, for precedents on
the commissions policy toward muni-
cipality owned utilities will be es-
tablished.
One thing is certain. the commits
sion will not permit municipal plants
to engage in unfair competition with
privately owned corporations. and
that it proposes to establish a mini
mum per cent of profits to be requir-
ed of municipal utilities. the profits
being paid into the city treasury for
the purpose of benefiting citizens by
tax reductions.
This action on the part of the COM
mission was apparently unexpected.
for City Attorney Bond stated last
week that he was certain the COM
mission would permit the proposed
rate reduction without first estab-
fishing the plant valuation.