The Lake County times. [volume] (Hammond, Ind.) 1906-1933, 1920-12-09

f.i equipment for every 20 cents o.
gross revenuc that Ii receives back ia
"a wear.
That equipment Is a permanent nx-
| ture in the community. II IS paid for
by the sale Of securities to thrifty in
v%estors. II could not possibly be paid
for out of earnings; tina can be~reldils
seen by any Iair-mlndcd man.
With money available only at prices
averaging 10 per cent and over how can
utilities expect to borrow any Of the
money il the peoples representatives, in
sist that 6 and : per cent on a greatly
deprecated valuation shall be consid-
cred a reasonable rate. l bespeak your
thoughtful consideration In To interests
Of your local utilities wuose prosperity
holds holds such n close relation to
that Of your own business.
For the past few years at every
session of the state legislature there
has appeared a movement for the alb
olishmcnt Of the Public Service Com
mission. Why Simply because this
Public Service Commission has found
itself. due to economic conditions. for
ced 30 grant some meager rate in
crcases in order to keep the utilities Of
this state from bankruptcy.
I cannot but feel that this movement
originates. not with the intelligent and
reasoning citizens Of our several COM
munities. hut rather with the unin-
formed masses f~ostcred perhaps by
some prcjudiccd person or some selfish
lpolitician more interested in his own
selfish plans than in the community
which he represents.
one would sometimes think that it
was criminal for a public utility to be
prosperous. A. a matter Of fact. from
the standpoint Of everybody concerned.
the public served as well as the own
ers Of the property, this Is the most
desirable condition.
IF it isn't prosperous. not alone will
the holders Of securities suffer but tho
employees must suffer. due TO failure TO
secure the wages which they ought to
get, the community will suffer on ac-
count of poorer service and failure TO
secure adequate extensions Of service,
What arc the facts with regard to
these increases in rates. Speaking
from my own experience. ran assure
YOU that in no case have utilities re
ceived a rate within % per cent Of
" hat 1T should be. and even those in
creases have only bcen granted sev-
cral months after they should have
been. The people of the state Of In
diana can rest assured that their Pub
lilo Service Commission has consist
emily adhered 10 a policy Of granting
only such increases in rates rs have
been absolutely necessary to keep tho
several utilities from receiverships
which would mean a generalization, If
not an absolute curtailment Of service.
I should say that rather than censure
the people or the state owe 70 the Pub
lie Service Commission a vote Of thanks
and [ am sure that if the general pub
lie We're fully aware Of ahe facts its
attitude in this regard would be chang
ed You can do much to make it known.
I do not want to be understood as
holding a brief for the Public Service
Commission I feel that their policy
OF keeping the utilities just one jump
ahead of the Sheriff has been a mistake
and a policy which Will react unfav-
orably on the community served. This
policy has made it necessary for utii-
tiles to defer maintenance to an almost
dangerous degree. and it will take sew
eral years of normal costs 10 place
plants end distribution systems IN pro-
per condition 10 maintain adequate and
satisfactory service.
Just avoiding insolvency far from
meets the situation. If public service
companies are put in a position where
it is a constant light between solvency
and insolvency private capital will not
go into them.
No city or town en- be more pros
porous than its utilities. This is a
demonstrate and admitted fact.
II its utility companies are "starv-
ed" and unable to furnish adequate
light. heat. communication or trans
portation services the city Immediately
feels the effect.
Paralyze any one of these services.
cause it to entirely suspend-consider
what would be the effect not only upon
all business. but upon the convenience
happiness and contentment and every
day life of every citizen. man, woman
or child.
When a utility company is abandon
ed. %suspends or becomes bankrupted in
any community. the financial effect. is
widespread and immediate. Bonds Of
that company are Immediately affect
cd for to the outside world it causes
immediate doubt as to The fairness of
its citizens. New capital in any line
Of Industry, hesitates to seek investment
in that locality, going to communities
more progressive and who have more
carefully gr1rded their reputation for
fair dealing.
1t must be remembered tina property
values are largely dependent upon inn
provements. A community without eff
cient utility service is bound TO decay.
Let us analyze for a moment where
the opposition TO the Public Service
Commission probably originates. We
find considerable opposition from that
small element Of our citizenship who
are interested IN municipal ownership.
The insistence of the Public Service
Commission that the accounts of mum
icipaily owned plants be kept in pro-
per form has aroused considerable OPP
position inasmuch as il has brought to
light the feet that these municipality
owned plants are not as fs -.rable to
the interests OF tn c-I.tunlties as
some would have US believe. The poIf-
TEXANS interested in fostering municipal
ownership do not look with favor on
any official and Informed body In a posi-
tlon to point out the defects in their
propositions.
Another phase OF this opposition to