The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1914-03-19
City Attorney in Statement Indirectly
Replies to Argument That 100000
Valuation Will Raise Water Rates
HOPES FOR READJUSTMENT
Cys Counsel Says, 1t Is Finally Determined that Justice
and Equity Require Readjustment of Prices Even
Though Some Should Hereafter Pay More, Still It Is My
Opinion that Such Readjustment Should Be Made Be-
cause 1t Would Avoid Discrimination and Be Fair to ALL

City Attorney W. A Bond today is
sued statement presenting his side
of the latest controversy which has
arisen over the water rates question
now before the Indiana Public Service
Commission.
The charge that the tentative rate
schedule submitted by the city attor
ney to the state commission would no,
be acceptable because it reduced the
company's revenue to an extent that
the stockholders would not receive !
fair and equitable" return on their
investment because the operating ex
penses would remain the same, is not
directly answered by Mr.. Bond.
In reference to this subject Mr.
Bond only says: eff it is finally de
termined that justice and equity re
quire a readjustment of prices, even
though some should hereafter pay
more. still it is my opinion that such
readjustment and Encouragement
should be made because it would
avoid discrimination, and be fair to
all"
Expects Readjustment.
He also expresses the opinion that
standing in regard to the city's posi-
there will be a readjustment of rates
whereby many consumers, especially
the small ones, will pay less.
Mr.. Bonds statement follows:
There seems to be some misunder
ton in the Water Works case. Nc
valuation and no schedule of rates has
been filed by the city with the com
mission, these will be presented in the
brief OF the city to be filed soon. The
tentative suggestion of rates as has
been heretofore published was usei
solely as an outline in orally arguing
the questions before the commission
This schedule was based upon the eN
treme value of the plant which tbs
city believes should be given. the high
est rate of return which the city be
lieves could be regarded in any event
as fair and reasonable against the
public, and the greatest rate of de
probation which. under any theory
should be allowed, and based upon
these propositions rates were suggest
ed which it is believed would brins
ample return upon these extreme fig
ures. The value and rates suggested
were used for purposes of illustra-
ton only with the understanding that
all these matters would be fully con
SldeIeu anu Set lOTll III our written
brief which will be done. Personally
| do not think the value of this plant
should be fixed as high as 500, ,000. 90
Neither do | believe that l per cent
per annum should be allowed on the
value of the whole plant for deprecia,
ton, for according to the figures sub
mitted by the engineers at the trial OF
this case, the past depreciation does
not amount to l per cent annually.
and if this be true. and takirf, it as n
fact that future depreciation will not
arise more rapidly than it has in the
past. l per cent for this purpose would
be excessive. But even if based up
on these extreme values, the rates as
whole would not be increased. if we
are right in estimating returns which
will be realized
Change Probable.
But it is very probable that what
ever the value and the rate of re-
turn as finally fixed, that there will
arise a readjustment of the schedule
of prices, and that some consumers
will pay more based upon fairness and
equity than heretofore. and that many
consumers, especially the small users
should pay less.
At the time Council ordered me as
city attorney to commence this pro-
ceeding. | publicly stated that it was
my opinion that the Civil City would
be required to pay more than it was
then paying-that it would receive no
free water and might be charged more
for fire protection. and that the School
City would undoubtedly be charged for
all the water it uses. which is now fur
nished free, and my further investiga
tions have strengthened me in this
opinion. But if upon full and thor
ough investigation and analysis of all
the facts and elements which should
be considered in such matters, it is
finally determined that justice and
equity require readjustment OF
prices, even though some should here
after pay more. still it is my opinion
that such readjustment and rearrange
ment should be made because it would
avoid discrimination and be fair to
all.
Sees Difference.
The rights of the individual con.
sumer are as important and should re-
ceive the same consideration as the
rights of the city, and during the
weeks and months that | have had this
matter under consideration and Civ
ing the same my best efforts. i have
endeavored TO look at all sides OF this
question and to do exact justice &c
every consumer, whether he use much
or little. | do not think that "a largs
consumer like Il railroad should be
furnished water at less than cost OF
production, for under such circum
stances others must in excess charges
make up this deficit.
This is an intricate and complicated
question and should be studied from
all angles so that no injustice shall be
done to any consumer. This l have
tried and am now trying to do. and rs
| have labored day and night to full,
protect the public in this matter,