The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-04-09
greenfield TO
BATTLE LOSS
OF INTERURBAN
Company's Right to Halt
Service Is Contested by
Officials.
PUT UP TO COMMISSION
System OF Management Is
ASSaiIed in Brief
Filed Today.

question OF whether public
utility can abandon an Improbable
service and still keep its original
franchise covering the profitable
portion OF the business was placed
squarely before the public service
commission today.
The question is raised in a brief
filed by Mayor A. G. Downing and
Robert F. Reeves, city attorney, of
Greenfield. The officials are fight
ing to retain the eastern branch Of
the Terre Haute, indianapolis &
Eastern interUrban operating be-
tween indianapolis and Richmond,
through Greenfield.
Petition to abandon the line is
pending before the commission,
having been filed in the name Of
Elmer Stout, receiver. Approval of
the abandonment already has been
granted in Marion superior court.
Management Is Scored
In addition to setting cut the
question Of the right to abandon
part and not all of the T. H., l. &
E., the brief goes into the matter Of
management, which company wit
nesses have testified resulted in
losses, rather than profits.
Commenting on these alleged
losses, the brief sets out.
THE city of Greenfield has made
no effort, either by evidence or
argument, to deny dispute or
analize the audits submitted in this
cause. The audits introduced by
the petitioner, as well as the audit
Of the commission. seem to show
that for some reason the petitioners
company is operating at loss.
1T is not surprising that this is
true.
Public Held Sufferer
"A company that can discontinue
the operation of more than a third
sof its trackage and continue on the
pay roll all its executives and adj
mniStrative force at practically the
same salary and office outlay, that
can cut seventy-two car hours off a
iXty-eight-mile division without a
corresponding reduction in its train
crews, and buy outright and operate
a bus line to compete with its rail-
road, must, for some reason not ap-
parent to the general public, de-
sire to land on junk heap rather
than in the lap Of public favor
This policy may be pleasing to
the reputed owners Of about so per
cent of the common stock and 70
per cent Of the preferred stock, but
it is rather hard on the minority
stock and bond holders and the pub
lie.
Denies Abandonment Right
we are content, however, to rely
upon the proposition, stated in diff
ferent ways. under our points and
authorities, that a public utility, by
acceptance of a franchise from the
state, assumes and agrees to furnish
a certain adequate service to the
public, and that it can not abandon
or avoid its obligation in this re-
gard so long as it retains that
AldllCllASCi llO llldUbCI 1lOW ul4plO lAG-
able the operation may be Or be-
come.
1T either must continue to fur
nish the service for which it was
organized or surrender absolutely
its right granted by the state,
authorizing it to undertake the
service"
Beneath the points at issue, as
set out in today's brief, there also
is the threat of insult power COM
petition for the Greenfield munic-
ipal electric plant, Mayor Downing
declared
insult, it is said, is the majority
stakeholder in the line, and with
its abandonment will have power
70 sell cheaDlv in Greenfield.