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

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 vii receive
increased tribute from $4,000 mini
mum users of about $87, $50 month
or $1,050,240 annually.
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 1888 is rejected, and the
rate increase is designed to produce
more thana per cent return on a
valuation of $22,50O,O0O
Plea to at least retain the emer-
gency rates was made by Harry K.
Cuthbertson, in a brief filed as at
torney for partment house own
ers. He pointed out that the COM
mission can not reject its own en-
gineer's finding, but the commission
did
AS a member 70 the public sery-
ice commission. Cuthbertson had
written me emergency reduction
order and successfully defended it
i the federal district court.
City attorneys urged further cuts,
as did representatives of civic clubs.
Other Commissioners Tpprove
The pleas were ignored and the
increase approved by Ellis, Commits
sioner Ralph Young, who aided in
drafting the order, Commissioner
Jere WeWst 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.
Increasing rates at this time
sealed the fate of Ellis and Young,
it was being predicted today.
A ripper bill'' may be introduced
at the coming session of the legis-
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 inclu-
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 $28,000,OOO
and S30,0O0000 and an per cent
return was sought. This was re-
jected
Charges made by the c. H. Geist
Company, Inc, Philadelphia, for
accounting, legal, taxation, manage
erial, purchasing and supervisory
matters" are upheld.
Based on New Conditions
In commenting on the rates order
the commission concludes:
1T 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 an dshould not be
pared down to At the rates and
revenues. Matchmaking is a prac@
teal matter, based on all relevant
factors.
THE rates which will be estab-
hshed are based upon all the eu~
dence and conditions, PARTICULARS
the prevailing economic depression
Getty Not Paying Portion"
The order leaves the city with ft&
$4,000 emergency reduction intact,
but comments that "the record in
this case indicates that the city il
not paying its preparation Of the
cost of service
Other rates remain as foIlowss