The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1915-06-26
Members May Announce De.
cisiOn Late in November
After Hearing Arguments
Sometime in September.
WYER TAKES STAND
City Officials Will Install
Bookkeeping System Rec
commended by Commis-
sion at Hearing.

1t is probable that no rulings will be
made by the Indiana Public Utilities
commission on the Richmond electric
rate-making case and the condemna
ton proceedings filed by the city Of
Richmond for the acquisition OF the
electric plant Of the Light, Heat 4
Power company until the latter part
of November or the early part OF De
cember.
When the rate case hearing closed
at Indianapolis yesterday afternoon
the commissioners announced that
they would not be prepared to hear ar
guments in either case until some time
in September The commission also
announced that it would probably
make a ruling in the purchase case
first.
Evidence was represented in the rate
case by the Light, Heat & Power COM
pany at the concluding session yester-
day, the principal witnesses being S.
S. Wyer and Mr.. Ferrendou, company
engineers. Their testimony was con-
fined for the most part to advancing
arguments why the going concern"
value of plant should be given as
much consideration in formulating
rates as the actual physical or pres
ent" valuation. Wyer had previously
placed going" value of $4,000 on
the Light, Heat & Power electric plant
and going" value of $46,500 on the
municipal plant.
Cites Court Decisions.
Wyer admitted that "going value is
something which is very little under
stood. even by experts" but he cited
decisions of the Wisconsin supreme
court and the United States supreme
court to uphold his contention that a
plant is possessed of valuation be-
yond mere physical valuation.
City Attorney Bond has insistently
maintained that there is no such a
thing as going concern" value. and
from the cross fire" of questions direct
ed at Wyer yesterday afternoon by
Commissioners Duncan, Clark and Nc
Clure it would indicate that going
value" was something they were not
inclined to attach much importance to-.
Ferrendou devoted a considerable
part of his testimony to the subject of
rate drafting, which was technical in
detail but of much interest to the COM
missioners.
Answering an inquiry of Commis-
sioner Mcclure, Wyer declared that a
reasonable return for dividend purpos-
es, in the case of an electric plant,
would be the legal rate of interest, six
per cent. plus an additional two per
cent for the hazard of operation.
Will Change System.
The severe rebuke given to the city
officials by Chairman Duncan Thurs
day because the commissions book
keeping system was not used at the
city plant, a rebuke which included a
threat of fine and imprisonment, has
been taken to heart by the officials.
Today they announced that the COM
missions bookkeeping system would
be installed.
Superintendent kleinknecht thinks
the Richmond City Water Works COM
pany and the Richmond Home Tele-
phone company should have been in
cluded in this abuse for. he says, these
companies have not been using the
commissions system.
He further alleges that the system
adopted by the state is too compli-
Gated and not as satisfactory as the
system now used at the plant. Under
the new system. he says, two addition
al clerks will be required.
Furthermore the city plant superin-
tendent thinks it strange that the
chairman should become so irritated
over the failure of the city to install
the commissions books and, at the
same time, pass off without comment
the admission of N. H. Johnson. SUI
perintendent of the Light, Heat &
Power company. that preferential rate
contracts entered into by the company
prior to the esta blishment of the state
commission were still being carried
out by the company