Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1920-11-08

The cost Of coal and power used In
generating electric current for the oper-
atlon Of the cOmpany's system In 1918
was S566712.52. the petition sets forth.
IN 1913 the cost of coal and power was
SoS4os3 and In 1920 (the last three
months cost being estimate) the petition
states will be SSS9. .954. 81 These hgures.
the petition states, are due to the cost of
coal which in 1913 averaged per ton
$3.50, in 1919 $4,000, and in 1920 has
averaged Sj20S1
The company says in its petition that
these largely increased costs have mora
nan overcome all increases In gross earn
lngs so that net earnings Of the property
have been for 1910 81 07s 936 90 and viii
De for 1920 1.-THE last three months earn
ings being estimated) SS1S,O07.7L
SHOWS HOW TAXES
HAVE INCREASED
The necessary expenditures Of your
petitioner" the petition reads, for State.
county, city franchise and Federal tax
IN 1913 was s219. .e75.34. In 1919 such
taxes were s4O1 .SO875. In 1920. such
taxes viii be s54O.07293."
The company shows in its petition that
the cost OF maintenance and opera ton in
1918 was s2.417, ,4O7.O1, or 675 per cent Of
the gross earnings. In 1919 cost Of main.
tenance and operation was So, ,25s. 1877. .Ta.
or 6s.1 per cent Of the gross earnings
and In 1920 tthree months estimated),
VIII be S4,0S7577.S2, or 70 O2 per cent OF
the gross earnings
The value Of the actual physical prop
erty used and useful in the public serv-
ice has been Gxed by the public officials
OF the State OF Indiana and OF Marion
County having jurisdiction chereof. for
the purpose o. taxation at SIS, ,05s-570, ex-
elusive Of any Intangible values
and the Public Service Commission has
heretofore tentatively found the value OF
the company's property 70 be between
$4,000 600 and S16.oOO.0Oo." the petition
stated. Even upon such smaller sums
the present net income of the company
VIII fail to produce a reasonable re-
turn"
The company maintains credit has been
Impaired so that no funds are available
for construction purposes
Future construction to a compara-
lively large extent must be provided for
By Increased earnings In Older to save
the franchise from forfeiture and to keep
up with the growth and needs Of the city
Of indianapolis" It continues.
The cost OF maintenance is such that
ca HNAulAIIeS OF L4e nAeQ proportion OF
the revenue. OF the petitioners avilAble
for maintenance does not produce an
adequate renewal OF the. petitioners
property, and it is essential that more
money should be available for such pur-
poses II such property is to be main
tained IN a condition adequats to the
service of the people.
SAY CHARGE WILL
ADD SSOO.0
by reason Of all the facts aforesaid,
it is necessary during such emergency
that the revenue Of your petitioner shall
be increased IN order that Il may main
tain it's service and continue Its husi-
ness. For such purpose 1t Is reasonable
and just that the public should pay
two (2) cents for each transfer ticket
issued by petitioner. Such charge is
estimated to increase the revenue of your
petitioner 100000 per year as a max
imum."
The company's petition states It oper-
ates 15S miles OF track in the city, at
a fare OF 5 cents for each person over
5 years of age, with transfers
In the Introductory paragraph Of the
petition the company states. due to the
emergency created by war, wholly and
entirely without fault Of petitioner, such
fares and the revenues derived therefrom
have been. are, and still continue to be
inadequate and insufficient to maintain
the petitioner in solvent operating con-
dition and enable it to discharge its
duties as a public common carrier OF
passengers and to provide service prop
erly and equipment reasonably necessary
to serve the people Of the. city of indian
apolis and TO return a fair and Just COM
pensation to your petitioners for the use
Of the property so used and useful In
maintaining such public service"
The company is represented in its "a
tion oy Smith, Remster, Hornbrook a
Smith and r. Winter, attorneys.