The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-06-12
BRANDS insult
PLAN Peril TO
PUBLIC RIGHTS
Attorneys Appear Before
Service Commission in
Bloomington Case.
RATES FUTURE AT STAKE
Harry Cuthbertson, Friend
of Utilities, PreSides
at Meeting.
RATES FUTURE AT STAKE
BY DANIEL M. KIDNEY

commissioner Harry K. Cuthbert-
son, whose defense of utilities from
the floor of the senate at the 1881
legislative session was a factor in
his appointment to the public serv-
ice commission, today presided at
an oral argument before the COM
mission in the Bloomington electric
rate reduction case.
The argument was on motion of
the city Of Bloomington to strike
out a cross-petition of the insult
interests to have the rate investi-
cation include the so-called south
district" properties.
Decision in the matter will af-
feet the whole future of utility rate
making in Indiana.
1t resolves itself into whether the
public service commission will ac-
cept the insult plan of using whole
power districts in making rates or
consider petitions from any indi-
vidual community.
Plea for retention of the local
unit plan was made by Robert Mil
Ter, Bloomington city attorney; AL
bert Fields, Bedford city attorney;
Arthur L. Gilliom, former attorney
general, also representing Bloom
lngton, and Harvey Harmon, former
public service commissioner, repre-
Senting the stone quarries in the
Bloomington Bedford district.
This arbitrary unit for which In
sull seeks to establish rates is COM
posed of sixty-seven towns and cities
extending from MartinsviIle to the
Ohio river" Harmon told the COM
missioners.
They want the rate survey to
cover, not only the electric service
as asked by Bloomington, but gas
and water as we'll There is no
more similarity between gas and
electric services than between
wheelbarrow and street car"
F'Wil Establish Precedent
Harmon then told of the Martins
vile case, in which he had presided,
and in which the commission had
rejected the power district theory.
The case is on appeal in federal
court.
IF you accept this theory you
establish precedent which never
will be oVerthrown," Harmon
warned. Under it no city or coun-
ty ever again will attempt to have
their utility rates reduced. In addi-
ton the power district program viii
be SO extensive that the company
figures will be the only evidence the
commission will have before it
in a rate case.
Should it involve properties in
another state the commission will be
absolutely powerless."
insult Attorneys on Hand
Gilliom pleaded retention of the
local unit plan as the only effec-
tive means Of control by the COM
mission. Other attorneys pointed
out that delay in investigation by
such an extensive audit requirement
as power district gives the COM
pany the advantage of the high
rates in the interim.
Frank FariS and George Henley,
Bloomington attorneys, and Glenn
Van Auken, indianapolis, appeared
for insult.
They argued that a power district
is the proper unit to base rates upon
as the power Is pooled from sew
eral sources and the cost of the in
terlocking units and loops form an
actual basis of cost, while a city or
county G1srely is an arbitrary po-
Itical division.
The case was instituted by the city
Of Bloomington filing for electric
rate reduction from the Public Serv-
ice Company of Indiana, insults
new name for the Interstate Public
Service Company.
Decision to Come Later
Additional fling extended the
petition to include the so-called
Bloomington district" which is
largely Monroe county.
Faris asserted that if the city had
the right to create a Bloomington
district" for consideration the COM
pany has the right to ask considera-
ton for their south district" unit
in that 1t has a physical properties
basis for its consideration.
AL commissioners listened to the
arguments and ruling is to be made
later, Cuthbertson being charged
with writing the order.