The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-12-31

OOlllpdIly Will D6 lOTCeU 10 ST.
crease from $1.08 to $1.25 in
The flame duck" public S
issued a permanent rate order
consumption up to 500 cubic
Sunday.
With the exception of this
increase, the emergency rate
reductions made last summer
remain unchanged in the
permanent order.
On estimates of their November
billings, the company will receive
increased annual tribute from 450,-
900 minimum users of about $7753O.
The order, written by Commits
sioner Howell Ellis, practically
Apologies" to the company for
not making it more.
1t was one of the most rapidly
written orders in the history of the
commission The case closed eight
days ago.
City Had Urged Cuts
Finding of reproduction new val
uation of the commission engineers
of $19,337 1853 is rejected, and the
rate increase is designed to produce
more than a per cent return on d
valuation of $22,500,000.
Plea, to at least retain the emer-
gency rates was made by Harry K.
Cuthbertson, in a brief filed as at
torney for apartment house COM
ers. He pointed out that the COM
mission can not reject its own en-
gineer's finding, but the commission
did.
AS a member of the public serv-
ice commission, Cuthbertson had
written The emergency reduction
order and successfully defended it
in the federal district court.
City attorneys urged further cuts,
as did representatives Of civic clubs.
other Commissioners Approve
The pleas were ignored and the
increase approved by Ellis, Commits
sioner Ralph Young, who aided in
drafting the order, Commissioner
Jere West and Chairman John w.
McCardle. The latter two already
have made known their intention
of resigning from the commission
when Governor Elect Paul V. Nc
Mutt takes Office Jan. 9.
O fhIC time
sealed the fate of Ellis and Young,
1t was being predicted today.
A ripper bill" may be introduced
at the coming session of the leg1s-
lature to wipe out commission con-
troll on the grounds that it has
failed in the present crisis.
Upholds Company Claims
The Ellis order upholds claims
made by the company as to 1nclu-
sion in the rate structure of going
value. working cash capital, water
rights. materials and supplies"
Total valuation of the company
experts was set between $28,00O,OOO
and 100000 and an 8 per cent
return was sought. This was re-
jected.
charges made by the c. H. Geist
Company, Inc, Philadelphia, for
"accounting, legal, taxation, mana
gerial, purchasing and supervisory
matters" are upheld.
Based on New Conditions
In commenting on the rates order,
the commission concludes:
ut is a fact that under present
economic conditions in Indianapolis,
the schedule of rates which the COM
mission will direct the company to
put in force may not yield a fair
rate of return upon what is indi-
Gated as the present value of the
company's property.
But the value found for the prop
erty has not and should not be
pared down to fit the rates and
revenues. Matchmaking is a prac-
teal matter, based on all relevant
factors.
THE rates which will be estab-
lished are based upon all the evil
dence and conditions, particularly
the prevailing economic depression"
"City Not Paying Portion"
The order leaves the city with its
$4,000 emergency reduction intact,
but comments that 1.-THE record in
this case indicates that the city is
rot paying its proportion of the
cost of service"
other rates remain as follows:
Per 1O0