The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-02-19
CITY PLEA FOR
ELECTRIC RATE
SLASH REFUSED
Mayor Calls Meeting of
Legal Staff to Plan
Future Action.
NO WARNING ON RULING
Ruling May Force Issuance
of Municipal Bonds to
Pay Light Bills.

Mayor Reginald H. Sullivan to-
day modified his legal staff to
consider legal phases of the public
service commissions dismissal of
the city light rate cut petition.
Sullivan said that, after deter
mining the legal status of the sit
uation, he expected to call meet
ing of his water and power rate
reduction committee to discuss flu
ture action.
He said the commissions order
came without warning, as commits
sion members gave no intimation of
their probable action at the last
conference between the city repre-
sentatives and the commission. He
denied reports city officers agreed
to the dismissal.
The mayor has been confined to
his home the last two days by a
severe cold, but left his bed and
went to his Office today to map the
city's future action in the light case.
Prepare for Water Hearing
In addition to discussing the COM
missions dismissal of the light rate
cut petition, the committees are
expected to make preparations for
the hearing March l before the
commission to determine if an
emergency water rate reduction
should be made.
Edward H. Knight, city corpora
ton counsel, today said that while
the commission may have been
within its rights in dismiSsing the
petition, the city is not barred from
appealing to the courts.
Knight also denied reports that
the city agreed to dismissal of the
petition.
During our conference with
Cuthbertson the financial situa-
ton of the Indianapolis Power and
Light Company was discussed, but
we were not informed that the COM
mission planned to dismiss the petit
tion," he said.
Disappointment over the order
was expressed by John F. White,
member of the utility rate commit
tee of the South Side Civic clubs,
which has been working with the
city for utility rate cuts.
Calls Regulation a Failure
Taylor E. Groninger, attorney for
the South Side clubs, refused to
comment on the order until he has
had time to study it.
However, I will say" he COM
mented, that this order tends to
confirm my belief that public regu-
lation of utilities has been failure,
due to the length of time required
and expense attached to appraisals
and audits, and the uncertainty of
court procedure.
Dismissal of the petition may
force the city to issue bonds at the
end of the year to pay part of its
utility bills.
In preparing the budget for this
year, more than $225,000 was pared
from the annual appropriation of
nearly $1,000,000 for lights and wa
ter, in anticipation of rate cuts.
Budget Is Cut
City officials refused to comment
on this contingency.
We won't cross that bridge until
we come to it" knight remarked.
The city park department, which
has a separate contract with the
light company, pared $4,000 from
its 1882 electricity budget item, the
appropriation for this year being
1000.
"A large part of the park boards
electricity bill is for boulevard light
ing, and, under our contract, don't
think we can eliminate any of these
lights" said A. G. Sallee, park SUI
perintendent.
However, we have sought to re-
duce current consumption in COM
munity houses and other buildings
under the departments control, and
we will redouble our efforts to live
within the budgeted amount"