The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-10-27
City Officials and Leaders
in Business Unite to
Call for Cut.
is ASKED
ProteStantS Insist That
Financial Operations of
Companies Be Barred.

Fight of Indianapolis residents
for reductions in light and water
rates was opened this morning, as
civic leaders and municipal govern
ment chiefs filed petitions with the
public service commission, demand
ing slices in utility assessments.
The petitions, directed against
the indianapolis Power and Light
Company and the Indianapolis
Water Company. charged rates now
are exorbitant and give utilities x
ceSsive returns on investments.
On receipt of the petitions, John
w. McCardle, commission chair
man, assigned them to Commits
sioner Harry K. CuthbertSon, hacker
of the power loop rate plan of the
insult utility interests, for imme-
date action.
Although no date was set for
hearing, it was learned that Harry
Wenger, chief engineer of the COM
mission, will start his Investigation
soon.
Wenger said, "offhand," he be-
lieved the combined value of the
utility companies is between $780,
100000 and 500, 0OO, oO0."
Based on Own Inventories
If this valuation is adjudged by
the commission, it is reported there
Will be little possibility for reduction
in water and light rates.
Wenger said it will cost the COM
mission about $4,000 to conduct an
audit Of the companies, which, he
said, will be based on the utility
firms own inventories.
He said he already had made a
check OF costs of material and
found some were lower and others
had not decreased. Wenger said he
believed the reduction of operating
costs would center around common
labor, copper and poles.
The commission has a $4,000 re-
volving fund for the rate-making
Investigations.
Notices of action were served on
utility firm heads.
The petitions demand the fnan-
cial outlay of the companies.
their methods of accounting, rate
returns and operating costs be
barred in a public hearing before the
commission.
Rates Branded Unreasonable
"The rates, tolls, and charges are
unreasonable, in that the aggregate
revenue derived therefrom is great
~ n excess Of the companies
operating expenses, taxes, d~eprecia-
ton requirement, and a sum
sufficient to pay a reasonable rate
OF return on the fair value" the
petitions charged.
Petitioners seek a hearing on the
subject matter of the petitions and
ask that, after due Investigation.
the commission authorize and direct
the utility companies to put into
effect a schedule of rates that will
distribute properly the costs of
water, light and power services and
provide reasonable rates of return
upon the present fair values of the
companies used and useful prop
erty."
Under the petitions, the commis-
sion is asked to conduct an investi-
cation into the holdings of the COM
panies and bring about a revaIuation
to secure a reduction of rates for
patrons"
Move Not Antagonistic
There is no purpose in this move
ment to arouse u~nwarranted
prejudices and antagonisms against
these utilities, the services of which
are vital to the health and comfort
OF the people, but since it appears
to be a generally accepted belief
throughout the community that
present utility rates are out of pro-
portion to present costs of pro-
ouctlon, an open, orderly, and de-
termined effort should be made To
secure an equitable readjustment on
the lower plane of prices" the
petitioners statement read.
For accomplishment of this
purpose, it is necessary to know the
truth about these public utility
properties-their financial setup in
capitalization, operating costs, rates
OF return, methods of accounting.
dividend payments, along with ali
n inner workings Of these con-
Germs, to all Of which the consum-
mo nTIhliQ fc onAf41oI - l.