Indiana daily times., 1921-04-15

by the call OF the community which de-
faults on legitimate obligations? WIN
not failure to meet financial obligations
defeat the whole intent Of the emergency
relief. viz, the first requirement set forth
by the corporation counsel of the city In
his December brief: - to enable
the utility to serve the public|
Corporation counsel, in presentation of
excerpts from the order of the commits
sion authorizing the consolidation Of the
Indianapolis Traction and Terminal and
the indianapolis Street Railway, certain
ly obtains an altogether different inter
probation of its intent and provisions
than that which the commission is able
to obtain, or that II intended or pro-
vided. If the Interpretation which the
corporation counsel obtains was the in
tent of the commission. the order would
not have been one for improvement Of
the situation. but one Of killing all hope
for credit. This, of course, was just con-
trary to the intent of the commission,
which was "a, to get rid of $6,1SO,OOO of
excess capitalization; (2), to get the
company down to a capitalization which
could be carried legitimately by Z per
cent return on the value of the property;
(3l, to relieve II Of obligations Of an in
active sinking fund and divert money and
interest going into said fund to improve
ment of the service and condition Of the
property, and a.. to lay rather than
TO shatter substantial bases Of credit"
Defends COMPANY
ON ANOTHER POINT.
The commissioners also defended the
stand of the car company in falling to
charge to capital expenditures the cost
of certain improvements and better
ments. The commission contends that
If there is a question of the valuation
-
before the commission after the emer-
gency period when a valuation can be
made lunder normal conditions.
In discussing operating revenues the
commission declares the first three
months Of 1921 did not meet predtc-
tiOns of a large decrease in the number
of passengers carried. 1t quotes figures
showing incomes and declares that con
sidering the fact that in 1920 which was
leap year, there was one more day in this
quarter, the commission can reach no
other conclusion than that traffic in the
first quarter of 1921 maintained the 1920
record"
The commissioners say they fail TO
agree with the company on anticipated
increased costs of coal and power and
declare that they believe it is almost
time to eliminate 1920 coal costs from
consideration. On the other hand, the
commissioners state:
The commission is impressed with
those parts Of the evidence which show
that while there is a readjustment down
ward Of general commodity prices, thus
far petitioner has not shared to any ap-
preclable extent in such readjustments."
In calculating operating costs the com
missioners point out that taxes con-
sumo practically mills Of every fare
collected.
SUGGESTS READJUSTMENT
OF TAX VALUATIONS.
In taking up again the matter of taxes
the commissioners express the opinion
that the car company has been lax in the
matter of its tax assessments and sug
gests that it take up with the proper
authorities the question of a readjust-
ment of valuations. The present valua-
ton of the company for taxation is
S1s,O5S,5T0, while $4,000, 600 has been
taken as a basis for rate adjustments.
The commissioners declare it should not
be the policy of the State to calculate
utility rates on one basis and taxes Oh
utility property on another
The commissioners take the attitude
that the ordering Of a skipstop system,
which was considered for a time, would
not result in sufficient saving TO Justify
such an order. In this connection the
commissioners say:
AT the hearing in this cause the com
mission avsiled itself of the opportunity
t1On Of frequent stoppinEs OF cars by the
adoption OF the socalled 'skipstop' sys-
TEN would have any material effect as a
relief measure. President OF petitioner
testified that there would be saving,
and estimated il at between $4,000 and
S100 600. On request that he make more
careful summary Of what the saving
would be. he filed the same as an exhibit.
NOT ENOUGH SAVING
TO WARRANT STEP.
The estimated saving is S44,621.2S per
year, which in i've and one -haIf- mil
Hon-dOllar business is not to be looked
upon as being considerable. II the skip
stop resulted In a saving that would make
other charges unnecessary the commits
sion would be strongly inclined to put II
into effect as an emergency measure.
1T is a fact that, although the skip
stop was in effect in Indianapolis during
the war period for limited time, II
never gamer the popularity that 1t would
seem to merit for those who travel con
siderable distance and to whom the skip
stop means the lessening Of time neces--
sary to reach their homes and places OF
employment.
mission act places such matters as op-
Grating questions, ordinarily IN the mu-
inequalities, and the commission Is strong
ly Of the opinion that preliminary to the
final solution of the street car situation
in Indianapolis, which viii come with
the return to normslcy, the matter of
the skip stop should be carefully cOnsld
cred not only from the viewpoint Of
maintaining the lowest fares possible,
but in the matter Of saving time Of
patrons.
This service question becomes the
more pertinent as the city extends its
street car travel boundaries. On a seven
or eightmile trip the skip-stop will de-
crease the travel time Of patrons hve,
six or seven and in some instances, more
minutes.
In such consideration, attention should
be directed to the fact that 1t would prob
ably he inequitable and unscienti1c to
accept the city block as the measure Of
distance for skip-stOps City blocks are
Of various lengths, some 200 feet long.
some 400 feet and some COO feet; and
sbip-stopping regardless of block lengths
would not produce the effects desired"