The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1914-02-07
City Attorney Refuses to Ask
Appraisement of Com
petitive Plant.
STATE BOARD GIVES
AMBIGUOUS ANSWER
Duncan Says Members Will
Take Petition Under Ad-
Visement.

From a short interview with Judge
Duncan, chairman of the Indiana pub
lie utilities commission, at Indianapo-
lis yesterday, City Attorney Bond is
IN doubt today as to what course the
commission will pursue in the city's S
petition for reduction in lighting and
power rates for the municipal plant
Mr.. Bond said that Judge Duncan
informed him the commission would
take the petition under consideration
as soon as possible, but he did not
know what action would be taken. If
rate reductions are authorized, it is
known that they will be operative
only temporarily, until the commits
sion has completed inventories of
both the municipal and the Light,
Heot and Pawer plants. Then the COM
mission would definitely determine
whether the reduced rate schedules
should be permanently operative.
1t was the desire of the commission
to have the city of Richmond file a
petition asking the commission to ap-
praise both local power plants for the
purpose of determining rates for each,
but Mr.. Bond made a vigorous pro-
test against such procedure, and to-
day fatty declared he would not pre-
sent such a petition.
Interested in City Only.
Mr.. Bond said he had no interest in
what rates were established for cleo
trio service of the Light, Heat and
Power company, and he told the COM
mission that if 1t desired to appraise
both plants it could do so on it's own
initiative. without waiting for any Pc
tition.
Nttx hnE
1t is fair to the city to have it's rates
established on joint consideration Of
the valuations of both the municipal
and private competing plants. He
said if the city plant can afford to re-
duce it's rates and still make the re-
quired legal profit it should be per-
mitted to do so, irrespective of what
the result of such action would be to
the Light, Heat and Power company
"On this question I found the com
mission to be divided" Mr.. Bond
stated. Judge Duncan agreed with
me, but one member expressed the
opinion that such action would estab-
1ish 'cut-throat' competition. AS a
matter of fact, the Light, Heat and
Power company has been pursuing a
'cut-throat policy for some time, but
the city plant has not been affected
by it to any extent, as it's earnings
will show"
Defines Duty.
Mr.. Bond also informed Judge Dun
can that the real purpose of the pub
lie utilities commission law was the
encouragement of municipality owned
utilities, and the commission was not
expected to protect privately owned
utility corporations at the expense of
patrons of a municipal utility.
The city attorney is of the opinion
that the Light, Heat and Power COM
pany is not now making the required
six per cent profit off it's electrical
business. He believes if the commits
sion follows. out its proposed policy of
not fixing local electrical rates until
appraisements Of the two plants have
been secured, 1t will find the Light,
Heat and Power rates to be too low
and order them increased, but to pro-
tect the company in such action might
refuse to permit the city plant to re-
duce it's rates. although a reduction
would be justified by the plants valu-
alton.