South Bend news-times. (South Bend, Ind.) 1913-1938, 1917-09-08
DENIES PETITIONS
TO RAISE RATES
Won't UnderWrite Dividends
by Increasing Rates Which
the Consumer Must
Bear Alone.

INDIANAPOLIS, Sept s. The
public service commission Of Indiana
late Friday, in handing down large
number of decisions on applications
Of public utilities for relief on war
cost operations, declared that il was
not its intention or policy 10 under
write seven and eight percent divl-
denda on such public utilities. by in
creasing rates on patrons of those
companies.
The Frankfort Heating Co. had
applied 10 the commission 70 increase
it's rates to "a cents. The public
service commission found that an
order had been issued by the old
commission on April 80 increasing
the rates from Il cents To 2112 cents
in authorizing a permanent schedule
based on valuation of the plant. In
vestigation revealed that in seeking
an increase of - cents the Frank
fort Heating co. was seeking to safe
guard seven percent earnings on the
entire valuation or interest on bonds
being deducted. almost eight percent
dividend or surplus.
Commissions Decision.
In its decision the commission
says:
1T was right and proper i'm fixing
a permanent rate that the commits
sion should provide for a seven per-
cent return on the accepted Valua-
ton. Conditions. however, have
changed materially since the issu-
ance of that order on April so, this
year. To authorize a surcharge Of
80 percent at this time, as meas
ure Of relief, would he simply under
writing a seven or eight percent divi-
dend or earnings for the stockhold-
ers of this company and absolving
il and them of any of the burdens
incident TO war. and shifting the en-
tire burden onto the consumers.
other public utilities petitioning for
relief from what they accepted as
being temporary operation costs at
tributabIe to war have expressed
little or no thought Of dividends or
surplus. but only of getting their
companies through this period Of in
stability and uncertainty. In light
of this attitude of other operators
of utilities, the public service COM
mission, at this time, will not con-
slider the granting q petition TO
safeguard seven or eight percent
earnings above fixed interest
charges"
Find some Lame Ducks
The commission has found about
eight or nine lame ducks in the
list Of electric light and power COM
panies that have petitioned for
emergency relief" When the move
ment for emergency relief was
started two months ago by the Indi-
ana Electric Light association, IS
companies signed the blanket peti-
ton for 80 percent increase in cleo
trio rates. In a series of hearings
that have been held, il was found
that many were. like the Boonville
Electric Light and Power plant. far
from showing any distress calling
for emergency action.
When it became evident that the
public service commission was max
ing Investigations and not taking
the petitions on the face of their
statements. many companies drop
ped out With consent Of petition
ers, the 80 percent increase pro-
ceedings instituted by the Madison
Light and Railway Co. and the Wa
bash Valley Electric Co. the latter
serving Sullivan Jasonville. Hymera,
Clinton and a number of other
towns and cities along the western
side of the state. were dismissed
Friday. Consideration Of the petit
ton Of the Indiana Utilities Co. for
a SO percent increase has been in
definitely postponed.
Grant Help TO Weak Ones.
Investigation OF the hot water and
steam heating companies shows that
some OF them will be able 20 get
through without increases. but in
creases were granted Fowler. Bed
ford. Lebanon. KokOmo and New
castle. The hearings and investiga-
tons revealed heavy losses at all
these points The commission uni
formly denied all petitions that con-
templated permanent changes in hot
water or steam heating rates and
where lame ducks were located
temporary surcharges for the heat
ing season OF 1917-1s1S, and extend
ing not beyond the end Of the fiscal
year. June so, 1918. We're granted.
In the case of the Interstate Pub
lie Service companies heating al
Fowler il was found that the losses
aggregate more than the gross reve-
nue. received. For 1917 the gross
earnings were S2.59s.52. the operat-
/ ing expense S7.3O1.52. leaving a de
felt OF S4.I02. or almost double the
total gross revenue.