The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-06-25
POWER CARS
ON VERGE OF
RATE VICTORY
Engineers Are Ordered by
Commission to AppraiSe
South System
STATE STAND REVERSED
Move Indicates Officials
Have Accepted insult
Loop Proposal.
BY DANIEL M. KIDNEY

score one of the most significant
victories in the history Of public
service commission control in In
diana it appeared today.
For engineers have been ordered
to appraise the properties of the So
called South system power loop OF
the Insull-owned Public Service
Company of Indiana.
With this appraisal used as the
basis for rate making in the
Bloomington district, it will mean
the commissioners will have re-
verSed their stand in the Martins
vile case, now pending in federal
court, and have accepted the power
loop proposal of the insult interests.
Eventually, it will mean a stand
ard rate for various classes of cleo
trio service throughout the big power
district.
Confer With Leslie
Towns and cities have been the
basic unit for rate making and the
city OF Martonsville was used, to
the exclusion Of the larger power
district, IN the Martinsville rate
case.
Commissioner Harry K, Cuth-
bertson, who succeeded to the post
of Calvin Mcintosh, has the Bloom
ington rate case in tow.
He said the order to make the ap-
praisal was made before the case
was assigned to him.
Harry v. Wenger, chief engineer,
stated that he received his inStruc-
tions to proceed Saturday. Com
missioner Howell Ellis and Fred T.
King, commission secretary, dis
cussed with Governor Harry G.
Leslie Wednesday the matter of
adding six engineers to the staff.
Today the state budget committee
approved a maximum of sixteen
engineers and ten accountants at
salaries ranging from SITS to $255
a month
Asked by insult
Properties to be appraised also
are included in a new insult cleo
trio merger case now pending with +
Commissioner Ellis.
Adoption Of the power-loop plan
was asked in the Bloomington rate
case by insult attorneys who argued
the matter before the commission
ers.
1t was opposed by Bloomington
and Bedford city attorneys and at
torneys for the stone companies in
the district
The rate reduction petition origi-
nally was fled by Bloomington and
later amended to include the So
called Bloomington district" which
is largely Monroe county.
Utility attorneys commended that
the Bloomington district" was an
arbitrary political division, while
their power loop is based on ply
steal properties involved in the pro-
duction and distribution of power.
Illustrates Survey Point
consumption.
Cuthbertson points out that Al
bert S. Ward, who is handling the
Martinsville court case as master,
admitted power loop evidence which
was not permitted at the commits
sion hearing.
He illustrated the point of the
survey by map Of the power dis
trict, which shows that there are
no generating plants in Blooming
ton, Bedford or Martinsville.
Power, he pointed out, is supplied
from four different sources and IN
less the entire loop is included, the
/ commission can have no basis for
rate-naking appraisals which will
stand the court test.
I'VE must stand oh our ap-
praisals," Cuthbertson declared.
Commissioners are agreed with
this stand, he asserted, but said the
rate case ruling may be confined to
Bloomington and other southern
Indiana towns and cities which
have filed or contemplated filing
reduction petitions.
Decision Expected Soon
These include West Baden, Co
lumbus, French Lick, New Albany
and Shelbyville.
1.-The time is past when local
unit can be appraised for rate max
! ing without taking into consider
ton the whole power production
plan" Cuthbertson explained. That
right was lost when the city per-
mitted its local plant to be aban-
doned in favor of the big power
circuit.
Nov the only hope for the con-
sumner and the job of the public
service commission, as I see it, is
to see that benefits accruing from
big power production are passed on
to the public"
Decision in the Martinsyille case
is expected shortly.
Arthur L. Gilliom, former attor-
ney-general. who is appearing on
the Bloomington side Of the case
before the commission, today filed
a brief opposing the cross-petition
of the company, on the grounds
that to surrender the local unit
right of appeal in rate cases is to
surrender utility control.
Right Of appeal by local units is
likely to be upheld by the commits
sion and the victory Of the utilities
lice ~ 4t,o v@,--~.a.. I-1-.-