The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-02-19
CuthbertSon Orders Petition
Dismissed, Without For
NAL Hearing.
REVENUE DROP SHOWN
Fall in Income Is Given as
Reason for Action by
State Official.

Without formal hearing, audit,
appraisal, or the taking of testi-
mony under oath, Commissioner
Harry K. Cuthbertson has dismissed
the petition requesting that the In
dianapolis Power and Light Com
pany reduce rates.
His order, approved by all COM
missionerS except Frank Singleton,
sets out at length that the COM
pany has shown a revenue drop and
there is no chance to reduce rates
now.
Petition for the reduction was
filed by the city administration and
a citizens committee organized
through the South Side Civic Clubs.
Their tacit agreement to the pc
tition dismissal was admitted by
CuthbertSon. But this is the first
time in commission history where
such petition was dismissed with
out formal hearing, unless agree
ment of the petitioners was set out
in the order No mention of such
agreement is made in the Cuth-
bertson order.
An order also was handed down
by the commissioner late Thursday
in the Indianapolis Water Com
pany rate reduction case. 1t orders
formal hearing March /, with the
idea of determining whether an
emergency rate reduction should be
made, pending audit and appraisal.
Rates Cut in Marion
Such emergency order, slicing
rates 20 per cent. recently was
made by Commissioner Howell Ell
lis in electric rates at Marion,
where charges were lower than here.
Cuthbertson approved the Ellis
order.
In that order it was set out that
the present plight of industry and
business called for immediate &C
ton for reduced rates.
Cuthbertson cites similar condi-.
tions in Indianapolis in his electric
company order, bat says that is why
rates can not be reduced and might
be increased If the repetition is not
dismissed.
A rate reduction hearing would
be bad for security holders, the
Cuthbertson order sets out, and
continues:
1.-THE entire effect of a rate hear
ing in this cause would be preju-
dicial to the best interests of the
public and the consumers of the re-
spondent utility without any benefit
whatsoever derived by the consum-
ers in the way of a reduction in
rates"
Conferences Are Suggested
Both the water and electric rate
reduction petitions were fled with
the commission Oct. 81, 1881. Upon
their being assigned to Cuthbertson
by Chairman John w. McCardle.
the commissioner suggested that
conferences be held, in an attempt
to seek compromise settlements.
Several were held in Cuthbert-
sons Office, with Mayor Reginald
H. Sullivan and his official COM
mittee and Walter G. RothermeI,
chairman, and members Of his
citizens committee.
Nothing came Of them.
Cuthbertson collected some data
and proceeded to write the orders.
The data, set out in the electric
order, show revenue loss Of 1894
1853 suffered by the Indianapolis
Power and Light Company in 1881,
as compared to 1880. This would
mean per cent return on $4,202,-
OFT, Cuthbertson sets out, and then
holds that drop in prices on used
and useful properties of the COM
pany would not be sufficient to
make up this deficit and reflect a
rate cut.
Ideas Held Erroneous
Reproduction new depreciated
has been primary factor in rate
making greatly stressed by utilities
and procured by them through the
United States supreme court during
the imitation period But with the
fall in material prices, it no longer
is being emphasized.
Cuthbertson also sets out In his
order that the members of the COM
promise committee had many erro-
neous ideas regarding values In
rate-making, particularly that the
tax assessment should be a base.
The commission is limited strictly
by decisions Of the courts as to
factors to be stressed, his order
points out.
Upshot Of the business appeared
to be that a water rate cut looms
but the city has been made safe for
the high electric rates charged by
the indianapolis Power and Light