The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-12-14
WATER HEARING
WILL COME TO
END SATURDAY
Evidence on Dividend Re-
turn Is Barred in Rate
Case Battle.

Water Company permanent rate
case viii terminate Saturday.
This date was agreed upon by at
torneys appearing in the case before
the public service commission to-
day. Adjournment was taken I'M
til Thursday to permit city and
other attorneys seeking rate re-
auctions TO study company evil
dence.
Commissioners were prepared %
grant a two-day moratorium. bus
Harry K. CuthbertSon. attorney for
the group fighting for rate yeGue~
tions, said one day would - Sst-
ficient to prepare their final attack,
Haunted by own Ruling
Cuthbertson. as attorney. suffered
a reverse Tuesday afternoon when
confronted with \ ruling ne had
made as a member o. TIRE pubic
service commission.
At the emergency rate hearing
last spring CuthbcrtSon, then COM
missioner. ruled that dividend pay
ments on common stock og the
company had no place in the evil
dence.
But when they were offered by the
commission accountants on Tues
day, Cuthbertson fought for their
introduction. over objections by
william L. Ransom, New York at
torney for the water company.
Cuthbertson, who resigned from
the commission on the eve of the
final rate hearing. now is counsel for
apartment house owners seeking
rate reductions.
Based on Rulii g
Ransom based his objections on
the Cuthbertson ruling and let the
matter stand until the record could
be consulted.
That record disclosed that Cuth-
bertson then had been emphatic in
forbidding dividend payments be-
ing disclosed at the former hearing.
The former commissioner, how
ever, contended that his railing had
not been upheld in federal court
and that the judges there were in
terested vitality in dividends being
part Of the record.
Commissioner Howell Ellis, now
conducting the water case, having
inherited it from Cuthbertson, up
held Ransom's objection. The divi-
dend payments since 1924 were
withdrawn from the record and the
procedure laid down by Cuthbert-
son last spring was carried out.
Shows Huge Dividends
The dividend compilation showed
that from 1924 to the close of the
first ten months of 1882 the water
company had paid a total of S.
100000 on $5,000,000 of common
stock. This stock is held by Clar-
ence Geist Of Philadelphia.
Despite the dividend ruling, Tues
day afternoons session was devoted
largely to determining what should
be a fair rate of return on utility
property during depressed times like
the present.
Nicholas H Hill Jr., New York
consulting engineer, took the wit
ness stand to support the company
contention that an per cent guar
anteed return is necessary now to
attract capital.
Opposition attorneys for the city,
apartment owners, and the South
Side Civic clubs sought to show
that, with declining business, no
new capital for expansion is needed.
Fights Per cent Rate
Cuthbertson led the attack on the
8 per cent rate, seeking to show
that such return is exorbitant UNI
der present conditions.
The company sought to show that
declining revenues for 1882 would
provide an per cent return on but
a Sl5599, 100 valuation, while they
contend the property is worth be-
tween S28,000000 and $30,000,0 0O
Net income of the money declined
from $949,0 in 1881, to 1922. 378
during the first ten months Of 1882.