South Bend news-times. (South Bend, Ind.) 1913-1938, 1916-01-18
Attorneys For Two Cities and
Electric Company Are in
Conference Again
This Afternoon.
MATTER NOT BEFORE
STATE COMMISSION
Valuation of Plants Affected is
COmpIeted-ExpertS Did
Not Include Growing
Value in Report.
InternationnI News Service :

international News Service:
INDIANAPOLIS. Jan. 1S.-Attor-
neys for the cities of South Bend
and Elkhart and for the Indiana and
Michigan Utility Co, today asked
for another postponement before
the public service commission that
they might prOlong their conference
and possibly reach some agreement
on the electric rate question. The
attorneys were granted another day
for the conference.
1t is thought some agreement will
he reached this afternoon.
In the meantime the commission
las announced the results of several
months of labor its engineers in
getting at the valuation of the
plants affected in the case This
was the biggest job the commission
has ever had on it's hands. 1t was
rumOred that the reproduction valua-
tions given by the commission about
six per cent lower than the
ones submitted by engineers in the
employ OF the company.
The company engineers claim the
commission experts did not include
the growing value in their report.
The values follow:
South Bend S1.S7O.O27 $1,7O7.92O
Buchanan, &C.. 56O,391 5O7,724
Twin Branch S69,0S5 1921
Pine Lake, Roll
ing Prairie, St
Joe. Niles. Eau
Claire. Stock
dale ..... $3.50 46.S3s
Elkhart ... 96O,S66 S96.SS3
Berrien Springs S91,646 s43,694
The Michigan plants are included
in the valuations because they are
in the same system and any rate
adopted viii be used in all these
plants.
The reason for the sudden attempt
OF the utility and city officials inter-
ested to compromise is a story worth
telling.
Tentative Value Fixed.
The tentative valuation OF the
property of the company has been
fixed by the engineers of the COM
mission and il is far below the
oonded and other Indebtedness of the
lighting company. according to in
formation received. The city of
South Bend and others supplied by
the company are dependent on such
extension OF service as the company
may make, and the company. under
the utilities law, is dependent on its
own financial condition and what
the commission will allow it to issue
in the way Of securities for what
er extensions il hereafter may
make with its Indebtedness above its
actual value.
Future issue of securities for ex-
tension purposes probably would not
bring sums close enough to par to
allow the company TO make such
extensions. it was argued There
fore "A scheme to agree on a com
promise rate was urged and thus
take the entire matter out of the
Jurisdiction Of the commission for
the time being. thus allowing the
commission to issue an order ap-
proving the compromise rate. was
evolved and this was explained TO
the commission at Mondays hear
ing.
Believe il For Best.
II such compromise rate is
agreed on, il has been the policy of
the commission 20 approve such
agreements. thereby wiping out the
effect OF the commissions tentative
valuation in this case until such time
as IL may be brought up again by
some other complainant That this
scheme will insure possibility of ex-
tensions in the future and will be
for the best interests of the COM
CONTINUED on PAGE THREED