The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-04-02
INCREASES IN
WATER RATES
TO Be FOUGHT
Schedule Change Declared
Illegal Without Hearing
for Consumers.
TWO VOICE DISSENT
Commissioners Ellis and
Singleton Disagree
With CuthbertSon.

OldISeS IldC <0,UOU Indianapolis
Water Company consumers have
had their rates increased without
a hearing, and that the compromise
settlement is illegal, were made to-
day by dissenting public service
commissioners, who refused to ap-
prove the order.
The order was written by Com
missioner Harry K. Cuthbertson.
and passed by three to two deci-
sion Friday afternoon.
Commissioners Howell Ellis and
Frank Singleton, directors, TODAY
launched their attack on the Ie-
gality of the order in statements
filed with the case.
This action puts the rate sched-
ule again in doubt, as Cuthbertson
announced that he is rewriting the
order, and held long conference
with Joseph j. Daniels, water COM
pany attorney.
Rates Are Boosted
Ellis statement carries a setup
OF monthly bill payments showing
that, under the CuthbertSon COM
promise, rates to consumers will be
increased as follows:
On the 800 cubic-foot step rate.
Z cents; 900, Is cents; 1000, %
cents; 1900, so cents: 1000, 81
cents; 5000, $277; 10000, $4.27;
10000, $6.07. and 10000, $7.57.
Il do not believe economic con-
ditionS warrant an increase in the
cost of water to any class of con-
sumers in Indianapolis, Ellis COM
mented. IF rate reduction is to
be made, it should be accomplished
without increase to a single con-
sumner. A mere adjustment Of
schedules, reducing some and in
creasing others, has been proposed.
Would Halt Schedule
..'The rates of all consumers using
more than TOO cubic feet of water
would be increased under the guise
Of reduction to minimum con-
sumers using 500 civic feet or less.
Il suggest no increased rate
schedules for aWter service in In
dianapolis be put into effect until
there has been thorough investi-
cation, to determine the actual
effect on the companys revenues,
by commission or other disinterested
accountants. This has not been
DONE"
Incdeased rates will apply to con-
sumers in large residences, apart
ment houses, barbar shops, beauty
parlors, groceries, drug stores, laun-
dries, manufacturing concerns, and,
in fact, for every user of more than
TOO cubic feet, he said.
Il question legality and propriety
of increasing rates without a pub
lie hearing in which the question
of increased rates is at ISSUE" Ellis
concluded. Such hearing as has
been held in this matter was in
connection with a petition for a re-
duction of rates only
Calls Increases Illegal
Singleton's statement sets out
that he is in agreement with the
reductions, but not the increases,
and terms the increases illegal.
"It is my view that no increase
in rates of public utilities is lawful
without opportunity for patrons SO
affected to be heard and without
evidence taken in public hearing
tending to warrant the increase in
rates." he said.
All commissioners approved the
Indianapolis Power and Light Com
pany compromise settlement, effec-
ed by Cuthbertson, on the ground
that no increased rates were in
volved.
Greatest benefit from the COM
promises comes to the city, with a
saving in water ard electric bills
equivalent to 2-cent tax levy.
Maximum possible saving to
water consumer would be 40 cents
a month, by reduction of the mini
mum from $50 to $1.08, the old
amount being 700 cubic feet and
the new 500.
Saving Is Small
Maximum possible saving to an
electric consumer would be 1917
cents month, or $3.50 a year. by
reducing the first so XVIII from
6la cents to 81 cents. No change
was made above that amount.
Both the Indianapolis Water
Company and the indianapolis
Power and Light Company benefit
by avoiding auditS and appraisals
on reproduction basis at the pres
ent prices by making miniature
sacrifices. The water company is
shouldering only S55, 900 of the $685.
600 reduction in the city's bill, the
difference being made up by the
rate increases.
Light company revenues will be
reduced by $164,985.93 a year, &C
cording to Cuthbertson's figures.