The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1922-02-07
STUMP PLEADS FOR
TRUE UNDERSTANDING
OF UTILITY QUESTION

Cooperation is the secret of the
great success and advancement of civ
ilization by the public in the last few
years and is more than what was
made in all the former years of the
world" declared Capt Albert Stump,
of indianapolis, who is connected with
the Indiana Utility association, at the
meeting Of the Rotary club Tuesday
noon at the Arlington. He said in
part:
There is no business charged with
a greater responsibility to the public
than the public utility business. In
this field the public exercises a more
intimate control than it does in any
other business. It's action in the exer-
else of that control should not be the
result of mere prejudice and passion.
Explains Stand
What are the facts with regard to
some of the increases in the rates of
public utilities? Let me give you the
prices of some commodities necessary
10 the operation of gas plant. The
material used in producing artificial
gas consists of gas oil, coal and coke.
Gas oil increased from slightly over
cents per gallon in 1916 to over
l212 cents per gallon in 1920, at which
price 1t has practically remained,
steam coal from s2.03 per ton in 1915
to SAIL per ton in 1920; gas coal
from 1924 per ton in 1916 to $4.96 in
1920; coke from S4.21 per ton in 1915
TO $1104 in 1920
add TO this the fact that labor has
increased over loo per cent during
the same period and the wages and
other charges mentioned have not
been appreeiably reduced, and you
will see that the actual cost of produc-
ing gas increased more than 125 per
cent. No amount of wrath because of
increase in gas rates can circumVent
these hard, obdurate facts. The pub
lie may in an expression of its resent
ment create such a general public de.
mand that the rates would be arhi-
trarily held at pre-war levels and what
would be the result of that? Only one
result could follow, and that would be
that the utilities would have to sus-
pend operations.
Utility Ownership.
There has been 4 unfortunate ten
dency on the part of the public to
regard the utilities business as being
= great, soulless predatory interest.
But who owns the utilities? There
are over 10000 holders of the Sc
curities of the American Telephone
and Telegraph company, and among
these holders are banks and trust
companies and a long list of life in
surance companies. Practically all
Of the large life insurance companies
hold some of these securities. The
D eserve on your own life insurance
policy is probably invested in some
form of public utility and | suspect
that not one man in ten could be
found in this meeting who would not
in a very intimate way be found to be
The actual owner of part of some one
or more of these utilities. The bus
mess of operating them is in the
hands of salaried men. These men
cannot force economic laws to be sus-
pended for the benefit of their enter
prises any more than any other bus
mess men can.
| need not argue that the services
of the utilities are valuable.
In the light of the general facts of
business familiar to all l am sure the
public should have no complaint
about the way in which the utilities
of the state have been regulated by
ure to properly regulate always re
suits in a disadvantage to the people
in the long run. They either pay too
much or are deprived of the service
entirely The duty of the commission
is 10 maintain that delicate balance
where the public gets the service of
the utilities at the lowest price con-
sistent with continuing the operation
of the utilities and attracting suffi-
GENT capital to them to make possible
their expansion to meet the growing
needs of the communities they serve.
IF the commission has failed in
any point it is in this latter. While
prices of other commodities, clothing,
rent, food, etc, has increased since
1916 from 100 per cent to $50 per
cent the average rates of utility ser
vice in Indiana have increased only
about % per cent. Not a single util-
'ity has ceased operating. But they
have not expanded and cannot unless
relief is given them. Capital is not
attracted to them Their securities
have constantly fallen in value"