The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-04-02
The Door Still Open

Under the law, any ten citizens may pc
tition the public service commission for a
revision of utility rates. 1t also makes man
datory an appraisal and an audit
The city administration and the South
Side Civic Clubs have forced a confession
from the electric and water companies that
their charges were extortionate.
The concession in money means far less
than this fact, for it will be remembered that
these companies insisted that they would
never surrender penny Of their plumber.
The city has obtained what will amount
to reduction in the tax rate of cents The
people get IL cents a month from the cleo
trlc company. The water company will
charge up any losses that come from a reduc-
ton OF the minimum charge per month to
those who use larger amounts than the first
700 feet
These concessions came after the COM
panies had decided that they could not afford
to let the public look at their profits or books
The water company has been paying the
club dues of its Philadelphia president from
the operating expenses, and it escapes, I'M
chided and unrebuked for this gIaring inva-
sion of the theory of regulation.
What other expenses have been paid by
the people were not disclosed. But it may be
inferred that company which would have
the bravado to charge it's charities, it's social
activities, it's contributions to tax organiza-
tons that are intent upon reducing the sal
aries of school teachers and policemen, has
paid other bills of even more sinister signif-
canoe from the same operating revenues.
The electric company was in even worse
position 1t had snarled it's defiance to the
people. 1t had received from Commissioner
Cuthbertson the benediction of it's defiance.
1t had declared that it would make no con-
cession whatever and Cuthbertson had
stricken the petition of the city and the
south side clubs from the docket as untimely
and unjustified when The Times printed the
fact that the Cuthbertson figures and those
issued by the company for stock selling pur-
poses seemed to bear no resemblance to each
other
It was after this disclosure that Cuth-
bertson arranged the secret compromise by
which the city saves on taxes and the people
get one-bit month.
But there is no public condemnation of
the method by which this company obtains
profit of twice what it conceded in the pur-
chase of coal from its own subsidiary.
There is no investigation of the high
charges for long-distance management or
the huge fees for engineering and financing
by which hundreds of thousands of unfair
profits are taken each year.
There has been no audit of its books.
There has been no delving into it's anti-social
practices. There has been no effort to say
what it would cost to reproduce their plants
today.
What the city and the south side clubs
accomplished has been to clear the decks and
make exposures. The secret concessions
amount to little.
But the door is open. Large users of
water and of electric power, if they get tired
of paying rates that are extortionate and
that are endangering industry and business,
could group together and demand action.
Two members of the commission resent
the situation. The conversion of a third is all
that is necessary.
The House Tax Bill