Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1922-04-18

the commission in the case because the
law of 1907 limiting the rate for gas in
INDIANAPOLIS to so cents. The decision Of
the Supreme Court in the case of State
ex rel. Lewis VS.. T. II l. & +. Traction
Company in which the court held the law
could not govern, was cited. In overrul-
ing the motion, the Commissioner Van
Auken said that Jurisdiction had been de
cided previously.
In mixing HIS statement Maholm con
Guided by saying. The law is still on
the hooks The same body that passed
the law creating the public service COM
mission passed law governing gas rates
for cities Of certain size. When their
IS merger the rates go up. The pub
lie has stood just about all 1t can stand.
The time is not far distant II a public
utility can come before the commission
and get increases asked, the commission
itself will be a thing Of the past
CLUB WOMEN
ATTEND HEARING.
A committee representing the original
South Side Women's Club consisting Of
Mrs. Charles Werbe. Mrs. Martin Reiffel,
Mrs. Harry Williams, Mrs. william
Reisener. Mrs. Asa Ashcraft. attended
the opening session Of the hearing.
Mr. Groninger, taking the facts as
partly set forth by the petition OF the
gas company has $l.lJ0,0DO In coke
which he said was worth on the house
OF the company's figures 100000. He
set out other assets Of the company as
follows:
Coke salable products and stock SLAP $50
Receivable accounts ........... 4329l2
Cash OBSERVATION-DISCLOSURES. 2''",1Ss
General stores ...-..'.......... 3B92H
Coal stock .........-........... l'H2Nl
Manufacturing supplies ...... - $50
The stock mentioned included, Mr.
Groninger said, 100000 Of stock in the
Mlburn By-Products Company.
The company desires to hold the assets,
Mr.. Gronincer charged and force gas
consumers to make up the deficit. lie
declared with the points he had made In
view, no emergency exists for an Increase
In the 90 cent rate and on the contrary.
II coke had been sold a lesser rate would
have been profitable.
In making his statement Mr.. Horn
brook said the time Of the hearing one
year ago. It was conceded that unless a
change Of business for the better came
late in 1921. that the rate Of 30 cents
would not he sufficient. The revival in
business as affecting the petitioner. had
not come, Mr. Hornbrook declared In
the ten month period OF operating under
the 00-cent rate the total income was
S4S3,O0o including 100000 in dividends
from the Milburn By Products Company
which dividends, he said. were accumula-
tive over n three year period Of which
S51 900 might be considered for the ten
month period, he said This left 500 600
for depreciation and return on capital, OF
which depreciation figured $i2J,000, Mr..
I IL.
tentative value fixed one year ago. be
said, was Sl2,oO0O00 and now Is about
$S0O.0O0 more The earnings, It was
shown, were short about 100000 Of meet
ing fixed charges.
BETTER BUSINESS
Is NOTICED.
In the month Of March, this year.
considerable element Of improvement In
business Of the company was noted. he
said. over any In the pdeceding sixteen
months. If the March business were to
be used as basis for future calculation
he said. an earning OF per cent could
not be found
In concluding his statement for gas
company, Mr.. ornbrook said:
''If the company is compelled to operate
at 90 cents it will amount to conasca-
tlon."
Earl Carter head of the engineering
department Of the public service commits
sion, whose survey and appraisal of the
gas company was used as basis for the
hearing Of May, 1921 was the frst wit.
ness at the hearing The survey and
figures used were Of Jan. 1, 1921
On direct examination by counsel for
the gas company he said that on a basis
of reproductive cost summary of val
ues, including no stock and no property
outside Indianapolis showed a total OF
$11 96s.S10 The property owner was
listed mt 81 1864 and leased a 81 500, 1863
Less depreciation, the reproductive value
was said to be S10,3S7 ,S47. This cost was
said to be not more than 10 per cent
more than the original cost If a ten
year unit had been applied, the cost of
reproduction. taking the Citizens Gas
Company and the indianapolis Gas Com
pany into consideration, would have fig
ured SIS, 705, 357. the witness testified
The depreciation rate OF 1 and ~ per
cent year was held by the witness to
be a reasonable charge.
Objections filed by the city were on the |
grounds:
The proposed schedule OF rates is I'M
reasonable and unjust
The petition fails to show the existence
Of an emergency which would injure the /
interests Of the company if the increase |
Is not granted.
The granting Of the petition will I'm |
pose An unjust burden on the people.
An increase in rates means a decrease |
in consumption and consequently a loss. !
The petitioner has failed to sell its
coke.
Prices of labor and material have been |
reduced.
The affairs OF the company have been |
managed.