South Bend news-times. (South Bend, Ind.) 1913-1938, 1916-01-21
RATE AGREEMENT
IS NOT APPROVED
Public Service Commission
Puts Up Battle For Re-
duCed Charges.
CcoNTINUED FROM PAGE oNE)

hours on which he could get rate
of S14 cents: on the next q kilowatt
hour. he would get cents and on
the next consumption after AZ kilo-
watt hours, he would get a rate Of
/ four cents. The electrical company
I figured il might be possible TO induce
i the consumption of electricity for
+ ironing and cooking through the
| four-cent rate.
No Important Change.
There were numerous changes in
the power rates. the stipulations
covering many pages. but the
/ changes in any one instance are OF
no great Importance. The officers
! of the company contend they have
about as advantageous a power rate
as any company in the state. one
change was made for the dentist
and another professional person who
was forced TO pay 81 for each horse
power of electricity formerly used in
operating his devices Under the
new arrangement if it is cheaper for
him 20 use electricity on the light
ing" rates. he will be privileged to
do so.
The compromise agreement was
reached late yesterday afternoon
following several days of argument.
At one time. Wednesday night,
while the conference was in session,
it was felt a plan had been agreed
upon and the rate would have been
J 81 cents. But just at that time
another factor entered the argument
and it is said the factor was an Of
fetal of South Bend and that he re-
fused 10 agree 10 the rates. I'm
mediately arrangements were made
for the hearing before the public
service commission yesterday morn
ing. but when the attorneys met at
| the commission, another plea for
compromise was made and the at
( torneys hustled behind closed doors
in the Offices of the commission.
! From this point the new comprom-
Use wos announced
Commission BalIs.
I IL is said the commission is un-
I willing TO approve the merger until
some more information is given re-
garding the bonded Indebtedness of
I the company and it's ability to pro-
vide for future extension of service.
( Granting all the values desired by
( the company. it is said, the COM
1 missioners have discussed the pos
sibility the bonded Indebtedness will
be about 100000 in excess of the
| total value. or there will he what
some persons term about 100000
! of water" When the question of
issuing bonds for future additions
I arises, that water might become an
interesting point and the commits
sion might be subject TO some crit
icism from persons opposed to it.
The commissioners are unwilling to
] discuss what happened at their con-
ferences. but these are the stories
| the rumOrs tell
This question is the same that has
! entered into every merger PROPOSE
tiOn before the commission. Every
company practically has presented
/ the same problem. but practically
every time. the water" has seeped
into the companies before the com
mission was begun and there has
been some doubt about the feasibil-
ity of the commission squeezing it
out. If it is squeezed out, the person
who put it in, has gotten his money
and has gone, whereas the poor in
weston in small amounts suffers be-
cause of the reduction in value of
his stocks or bonds.
The condition. which was made
public earlier in the week, whereby
a compromise of the character sug-
gested would have evaded the ques-
ton Of the valuation of the COM
pany's property, thereby removing
doubt as to any Of the values of the
bonds outstanding against the COM
pany's property.
Under the compromise which had
been agreed on Thursday, repre-
isentatives Of the company said the
company's revenues would have
been cut about $4,000 a year. Vari-
Gus estimates on the length of time
the hearing viii take are heard.
Some believe it will continue six
weeks.
IL became evident early Thursday
afternoon that some Of the commits
sioners were not in sympathy with
proposed compromise rate schedule
and these commissioners, il seems.
carried the day when final cOnsidera-
ton Of the question came up.
VIII Approve LES Than Cents.
The company offered 10 reduce its
light rate for domestic purposes from
/ 10 cents 10 S ii cents net a kilO-
watt hour and this was satisfactory
to the representative Of the cities.
The commission. after a lengthy
/ conference, decided that it was un-
willing. without the submission of
evidence, 20 approve an s 1-4-cent
rate. 1t was indicated that the COM
mission would approve any rate less