The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-07-02
CITY-UT|LITY
RULING UPSETS
STATE POLICY
Logansport Decision Will
Change Whole Conduct
of Commission.
ENTITLED TO PROFIT
Supreme Court Asserts,
However, Board Does
Have Jurisdiction.
RY DANIEL Nj. KIDNEY

court UNFOLDING the right Of gov
ernment-owned utilities to make a
profit on investment has served to
dramatic this matter Of municipal
ownership.
For the plant involved In the
suit is the Logansport Electric Light
and Power plant, which is an out
standing example of the possibilities
of municipal power.
Although the plant is not a great
power loop, so popular with the big
utilities of today. its rate is one OF
the lowest in the state. Yet its
profits have been sufficient to build
municipal buildings unequaled In
any other city of its size in Hoo
sierdom.
Refused New Schedule
It's day in court was brought
about when the public service COM
mission sought to still further re-
duce the rates back in 1926. The
city refused the new schedule and
took the matter into Cass circuit
court.
Here Judge Jere West. who now
is a member Of the public service
commission, held that a municipal
utility must operate at cost and
was not entitled to profit.
Logansport appealed to the SUI
preme court and held in addition to
its right of profit-making that mu-
nicipal utilities are not within public
service jurisdiction.
Wednesday the court held the
public service commission does have
Jurisdiction, but must permit the
municipal utility to make a profit
which amounts to fair interest on
investment.
To Change Conduct
This ruling will change the whole
conduct of the commission in mu-
nicipal utility cases. Heretofore
they examined only operating costs
and made no plant appraisal what
ever. This was the procedure being
followed in the Richmond rate case,
but now an appraisal will be made.
Meanwhile, LoganSport continues
to build and beautify its town from
its electric revenues with rate far
below that which customers pay in
the high-powered privately owned
districts, such as Indianapolis.
Buildings built from these rev
enues, before the suit was launched,
include a $257, 1861 municipal Of
flee building, a $52,195.13 central
fire station, street department head
quarters and garage and a factory
building leased by the Muelhausen
Spring Company, which operates on
municipal power.
In addition to this building pro-
gram the revenues have financed
construction of an up-to-date sew
age system and created and cared
for a system of municipal parks.
During all this time the rate has
been kept at a low figure, COM
pared with indianapolis prices, and
the power and light has bee2 ex-
tended outside the city to the rural
district at the same rates.
Prevailing Logansport rates are
5 cents for the first 80 k. W. h.
and cents for all over that amount
for residence lighting and power.
Business and factory power rates
are cents for the first 500 k. W. h.,
IS cents for the second 500, 4 cents
over 1000 and cents over 5000.
Two Residential Rates
There is no service or minimum
charges, but OF cent k W. h.
charge is added for bills not paid
before the 10th of the month.
In Indianapolis there are two resi-
Dental rates on file by the Indian
apolis Power and Light Company.
The lighting rate is SIS cents for
the first so k. ". b.: 6 cents for
the second so, 5 cents over 100 and
4 cents over 200.
A combination light and power
residential rate is filed at z cents
for the first so k. W. h., SIS for $50,
As for 300 and "a over 1000.
Municipal rates generally are be-
low those Of the privately owned
concerns, despite the fact that the
small municipal plant has none Of
the advantage of the low produce
ton costs Of the great power plants.
Not Reflected In Rates
Thus far these vaunted adyan-
tages Of big development have not
been reflected in reduced rates to
the consumers.
One Of the big anti-municipal
ownership arguments is that the
municipal plant doesn't pay taxes.
But in Logansport all the projects
financed from the plant revenues
would have otherwise appeared on
the tax duplicate.
Washington, Ind, has a municipal
plant operated at a profit for many
years under Mayor John Mccarthy
which entirely has wiped out the
city tax lew.