The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1920-12-16
OPERATING COSTS PUBLIC UTILITIES TO REACH
NORMAL LEVELS, SAYS COMMISSIONS REPORT

INDIANAPOLIS. Ind, Dec. 16.-Op-
Grating costs of public utilities have
reached the peak and in some cases
the highest level has been passed, &C.
cording to the annual report of the
public service commission, which has
Just been completed.
A year ago costs were constantly in
creasing. the report points out. but at
the present time conditions have
changed.
During the past year." the report
says, there has been no decline in
operating costs to utilities. Until quite
recently operating costs continued to
increase. At this time the commission
is inclined to believe that the peak has
been reached and passed, and that the
price of materials and fuel will reach
more normal levels"
One of the chief factors entering in
to the increased operating costs of
utilities, according to petitions which
have been filed with the commission
In rate cases, has been the excessive
cost of coal. This item, according to
the statements of the utilities, has
scared so as to present serious prob
lem under normal times. The commits
sion, according to the report, is of the
opinion that coal costs will come down
during the next year.
1T Is likely" says the report, that
coal costs will be less burdensome dur
ing the coming year"
Decline Noted.
A marked decline in the prices of
many of the materials used by various
utilities is noted by the commission.
Copper which is used in large
quantities in electric bus bars" says
the report, land electric transmission
and distributing systems is suffering a
marked drop, and apparently will soon
/ reach a point as low as before the
world war. Cast iron pipe is extreme
ly high, and continues high. with no
immediate indication of fall in price.
However, we are anticipating a sharp
decline in it's price, although there
are no signs at this time which would
indicate that.
Cedar poles have continued to go
upward in price, due to depletion of
the supply and the continued market
demand, but apparently even the price
of poles has reached the top, for there
is rumor among the trade of an i'm
pending drop in the price. Prices of
cross-arms are expected to take a 20
per cent drop soon.
Efficiency Increases.
wages have not fallen, but we have
noted a tremendous increase in the eff.
ficiency of labor due to the fact that
there are more men than jobs and
also to the fact that now homogeneous
can choose their own men instead of
being forced to take what they can
get.
"As replacement and depreciation
require labor and material at present
day prices, We believe that the time is
coming when we will be able to OBJ
serve a decrease in the costs of opera
tion in so far as the depreciation item
and the general labor item may con-
tribute to the operating costs.
at is fair to say that while we see
no immediate possibility of decrease
in operating costs, we can take some
satisfaction in indications that the top
has been reached, in some cases even
passed. This observation is made
with pleasure both for the owners of
public utility plants and for consum,
ers Of public utility plants and for con-
sumers of public utility service, espe-
cially since we have passed through
four years of frenZed increases in