The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1914-05-21
WATER COMPANY
REDUCES Rates
To LARGE. USERS
Utilities Commission Makes
Discovery and Calls How
ard Dill to Explain Disre-
gard for Its Schedules.
Board Alleges Consumers
Using More Than 1,2OO
Gallons for Years Pay Less
Than Is Cents.

That the Richmond City Water
Works company has consistently held
to its published rate for domestic con-
sumers, or small consumers, which
is 25 cents per thousand, but that the
published rate of IS cents for COM
! mercial consumers using 1900 to $500
gallons per day, has been ignored for
the last ten years, a lower rate pre-
vailing, netting the company more
| than $4,000 less than it's annual reve-
nue. from such patrons should have
been had the published rate been fol-
! lowed, was discovery made by the
! Indiana public service commission. Su-
perintendent Howard A. Dill was ION
/ the carpet" before the commission and
confronted with this discovery yes
| terday, and asked for an explanation.
The only reply Mr.. Dill could make
was that when the company filed its
published rates schedule with the
commission, over year ago, he had
forgotten to inform" the commission
that the rate for commercial consum-
ers using from 1900 to $500 gallons
per day was no longer observed, and
that the company was charging 15-
| cent rate to commercial consumers
using 10000 gallons every six months,
or 166 2-3 gallons per day. This rate
mercial users and had reduced the
| cOmpany'S revenue from such sources
from approximately $4,000 per year,
what it would have been if the publish
ed rate had been followed, to approx
mately $4,000.
Sharp questions were addressed to
| Mr.. Dill by members of the commits
sion when they sought to find the rea-
son the company had neglected to in
form them of this unpublished" rate
schedule, and he had very bad half
hour on the witness stand.
Ask About c. e. o. Rate.
Mr.. Dill was also asked why the
c. & o. railroad company had been
getting a rate of cents for water
1t used when, under the rate schedule,
it was only entitled to a 7-cent rate.
Mr.. Dill said that when the road was
organized as the c., r. & M, it en-
tered into a contract with the water
company for a scent rate, the same
as enjoyed by the Pennsylvania com
pany, but admitted that this contract
had long since expired and had never
! been renewed.
| DullIA6 LlC al Su"ciIS Uc1OIC IuC
commission since the first of the year
on the city'S petition for reduction in
water rates, the company has always
contended that whatever rates were
established the company should re-
! celve the same revenue as now assur-
| ed under it's published rates, but the
| commission did not discover until its
experts made an audit of the records
of the individual consumers that the
company was not receiving the reve
nue. it was entitled to under it's rates
schedule, because this schedule was
not applied to a large class of con
Sumers.
Withholding the unpublished sched
ule for a large class of commercial
consumers on the part of the local
Water Works company is serious vi
olation of the law pertaining to the
state commission, but whether the
board intends to. punish the company
for such action is not known.
Calls II Rebate.
/ City Attorney Bond attended the
hearing yesterday and gave his opin
ion that the company had been prac
ticing what amost amounted to re
bate policy in favor of the large con
sumers at the expense of the small
users of water.
| Chairman Duncan of the commission
was working on his opinion on the 10
cal water works case when the dis
elimination was called to the com
missions attention by it's experts, so il
was decided to ask Mr.. Dill for an ex
planation, which explanation was not
very satisfactory to the board.
Judge Duncan thinks that the com
mission will be able to file its opinion
on the case. establishing a new watel
rate and valuation of the company's
plant, either Saturday or Monday. He
has frankly expressed pleasure witt
the manner the city has handled its
end of the case, and city officials are
very hopeful that the commission will
approve of the tentative rates schedule
prepared by Mr.. Bond and members O.
the public utilities committee of the
Comemrcial club and submitted to the
commission recently.