The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1915-04-10
County Commissioners in
May to Test Power of Pub
lie Utility Commission to
Increase Rates.
DOUBTS AUTHORITY
Claim Franchise in Wayne
Prevents Road From Add
ing to Rates Despite Ruling
of State.

A test case against the Terre Haute.
Indianapolis & Eastern Traction COM
pany probably will be instituted by
the county commissioners in May to
ascertain the power of the public util-
tiles commission to make ruling con-
trary to the provisions of the fran
chise granted the interurban company
by this county.
The ruling in. question is the in.
crease in rates granted all interurban
companies in Indiana to two cents a
mile, effective May 1. This ruling will
permit the interurban companies to
charge higher rates to every point in
Wayne county west Of Richmond.
The county commissioners learned
today from Attorney Hoelscher that
the traction company is now charging
the maximum rate allowed in it's fran
chise.
The section relative to rates in the
franchise granted at special session
May "a, 1900, reads as follows:
''The rate of fare to be charged on
said railway not to exceed 2 cents per
tinuous trip. Provided that the said
grantees, their successors and assigns
shall not be required to accept any
fare less than five cents for one con-
tinuous trip. Provided further, that at
time said railway ID cpmplstsd and
running Its cars regularly, the said
grantees, their successors and assigns,
ohon $40 eh rvHA nd
two-thirds cents per mile for each pas
senger for one continuous trip, the
minimum fare to be charge to be five
cents
Reduce Rates In 1903.
In 1903 the rates were reduced to
one and two-thirdsc cents a mile, as the
franchise provided, and have remained
the same since. About six years ago,
an attempt was made to add five cents
to limited interurban fares. and test
case at that time resulted in the fran
chise being upheld.
The commissioners on the car May
/, who will tender the conductor the
regular far to Centerville, which is
now ten cents. Centerville being six
miles, the traction company under the
new two-cent ruling, would make the
fare twelve cents, commissioners said.
Added Cost.
Employees of the traction company
said the new schedule of rates when
put in force can not increase the fare
to the farthest point in the county
more than six cents in excess of the
rate stipulated in the franchise.
1t will not be question entirely OF
the charges If the case is brought to
test, but will involve the extent Of the
authority of the public utilities COM
mission and the legislature.
The traction company is basing its
action on the action of the utilities
commission, which has it's authority in
the public utilities act of 1913. and
more specifically in law passed by
the 1915 legislature giving 1t power
to grant the two cent fare to inter-
urban companies.
Believe Board Wrong.
AS nothing is said in the public util-
tiles commission ruling relative to
counties where franchises stipulate
rates, it is believed by the county COM
missioners that the courts will uphold
them in demanding that the terms of
the franchise be followed out. The
rulings were general and in few coun.
ties were the rates stipulated in the
franchise.
After investigating today, the COM
said that Henry will have
no recourse, and probably no other
counties on the lines of the traction
company will be a position to fight the
increase. If the contemplated case Is
brought to court, the ruling will be ap-
plicable only to Wayne county. and
another noint will he involved. This
is whether the traction company can
charge two cents mile in Wayne
county for continuous trips outside the
county