Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-10
RACKET
EXPOSED IN WEST
Indiana Commission Un'
earths Plan to Prey on
Public and Industry.
BY GEORGE E. DOYING.

Racketeering has invaded the field
of public utility regulation.
Information reached here today Of a
manifestation of the practice in In
diana-at least, it was so-characterized
by the Public Service Commission Of
that state.
The commission minced no words
in throwing out of court complaint
filed against the electric, rates of the
Public Service Co. of Indiana as ap-
piled in the city of Franklin. A
petition signed by number of resi-
dents Of the city had been filed by an
individual representing himself as their
agent but who was himself resident
Of another city.
Terms Of Contract.
1t was learned that this individual
had entered into a contract with the
City Council of Franklin. whereby he
was to receive IS per cent of the savings
for one year effected by any reduction
that might be brought about in the
electric rates. When the commission
sought to secure a copy of the contract
it was learned that it had been removed
from the city clerks files. but sub
oSA1ShbAy ~ wac PAOANNS0 ny ivy
attorney.
The contract in question, on its face
has all the elements Of champerty,"
said the commission, and declared that
1t would not proceed with the case
and thereby possibly impose an I'M
necessary burden upon the taxpayers of
the city, who would have to bear the
cost of any payment that might be
made to the agent. -
\
that 1t would act on its own motion in
an investigation of the electric rate sit
uation in Franklin and would recognize
and preserve all the rights Of the orig
inal petitioners, but would have no
dealings with the agent.
This proceeding, it was pointed out
here. seems to be an enlargement Of a
practice that has prevailed in some Of
the larger cities for many years, par
ticularly with respect to electric rates.
10 is customary for the electric utili-
ties to have in effect at the same time
two or more rate schedules-optional
rates-especially designed for CONNER
cial users. In some instances a small
business man may not select the sched-
ule which would produce the lower bills,
and this has resulted in the building up
of . lucrative business for more than
one enterprising citizen.
Optional Rate Schedules.
A proposition to secure a refund from
the electric company for failing to bill
the customer at the lower rate, the
agent to receive a percentage of the re-
fund, finds numerous willing listeners
who have something to gain and moth
ing to lose. An inspection of the month
ly bills, II it discloses that another
schedule would have produced lower
total charges. is followed by complaint
to the regulatory commission-unless
the utility is willing to settle and make
reparation for the ovsrcharge.
Some of the leading State commits
sionS are themselves in disagreement as
to the propriety Of optional rate sched-
ules. The New York Public Service
Commission recently declared that I'M
less q public utility will see to 1t that
each customer receives the rate best
suited TO his needs 1t may we'll be that
optional schedules should be prohibited
The Pennsylvania commission, on the
other hand. has asserted that the utility
is under no such obligation, but that
the customer must. look after his own
interests.
tCopyriEht, 1917