The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-10-15
CLUBS ACT TO
END UTILITIES
RATE GOUG|NG
Prepare Petition to State
Board for Sweeping
ReVisionS.
EDITOR ASSAILS GREED
Power BaronS' Taxing
Might Exceeds Govern
ment'S, He Charges.

Demand that the public-service
commission review water, light, and
power rates in indianapolis, with a
view to ending the gouging of citi-
zens by greedy utilities, is being
prepared by the South Side Civic
Clubs utility committee, and a petit
ton will be filed soon.
This announcement was made by
Walter G.. Rothermel, committee
chairman, Wednesday night at a
meeting of the south side clubs CEN
trail committee in Garfield park
community house.
Rothermel and j. Ed Burke, CEN
trail committee chairman, appealed
to civic club members and other
citizens to volunteer their services
in gathering information to be pre-
sented to the public service COM
mission.
Developments Soon
Full details of the committees
work can not be revealed now, as
this would expose our position to
opponents" Rothermel said, but 1
can assure you the committee is
hard at work and some real dCvel-
opments may be expected SOON"
At the close of the meeting, an
nouncement that he expects to file
suit in circuit court, possibly late
today, to mandate the public service
commission to reduce all public util-
ity rates throughout the state, was
made by Ward B. Hiner, Red Ball
Transit Company official
An attack on exorbitant water
and light rates was made by Boyd
Gurley, editor of The Times, prin-
cipal speaker of the evening.
Taxing Power Greater
Public utilities today have a
greater taxing power than even
the government" Gurley declared. |
They not only have the power to |
levy tax in the form Of exorbitant.
rates, but also the power to collect |
this tax by shutting off service.
''Forty-four cents of every dollar
you pay the water company is sent
to the company's president, Clar-
ence H. Geist, in Philadelphia.
TN 1880, according to the COM
pany's report to the public service
commission, the company collected
$2,834757 for water OF this amount,
practically 100000 was taken from
the civil city for hydrant rental and
the water it uses.
Own 100000 in Stock
"Geist and his family own $5,OOO,-
600 stock in the company, on which
last year they received dividends of
$1,225,000. or 1873 per cent of the
total receipts of the water company,
taken out of Indianapolis.
Present utility rates are based on
valuation made in war times, when
prices were at their peak. These
valuations are based on replacement
cost, instead of investment.
IF this method of fixing rates was
fair then, when prices were high,
it should be just as fair now that
prices of material and labor are low.
Urges Two Thirds Cut
Instead of the water company
receiving rates based on $40 100000
valuation, that figure should be cut
at least two-thirds.'
Granting of a light and power
monopoly has failed to bring the
promised saving to patrons through
reduced operating expenses, Gurley
said.
The indianapolis Power e. Light
Co., really is controlled by 100000
shares of common stock turned over
to holding company on the basis
of a value of $1060,000, he said.
Last year the holding company
drew down $54O,oo0 dividends on
this stock" he said THE whole
takings we're about two millions.
Controlled by Firm
The light company buys its coal
from a concern controlled by the
same holding company, using
approximately 100000 tons a year.
Using the cheapest of Indiana coal,
ordinarily worth from 80 to 90 cents
ton, the light company in 1927
paid Sits a ton. In 1928 and 1929.
it paid $3.50 ton. In 1880, the
price went up to $l.39
Every time one of you turns on
a light switch, you are helping to
pay this excessive price to the hold
ing company.
"The public has a right to COM
plain against such extortion. There
should be united demand for JUS
tice, through exercise of the law.
utility rates should be trimmed
down at least to the same scale as
the present earnings of the working