The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-12-13
WATER COTS
BOMBARDED ON
COST FIGURES
Experts Ignored Local Rates
on Construction, Assert
City'S Attorneys.
SC0FF AT 6-CENT STEEL
High Dividend Payments
Are Revealed, Over 0bieC-
ton of Utility Counsel.

Effort to show that reproduction
cost figures, compiled by experts
for the Indianapolis Water COM
pany were not based on fact was
made at the hearing for perma-
nent rates before the public service
commission today.
Harry K Cuthbertson, former
commissioner in charge of the water
rate case and not attorney for
apartment owners seeking reduc-
tions, led the attack on the COM
pany estimates.
After an hour of cross-question-
ing of Malcolm PRIME, New York
engineer, Cuthbertson secured the
admission that no actual building
construction prices here were used in
arriving at the estimate that struc-
tural steel, erected as in water
company properties, would cost 6
cents a pound if the job we're done
now.
Buildings Not Comparable
Reason given by PRIME for not
considering actual building projects
in indianapolis was that small
buildings being erected are not
comparable
City attorneys cited such projects
as the new Indiana university den
tai school, the Playground grand
stand, and the Indiana Bell Tele-
phone building as work in progress
upon which estimates might have
been based.
They asserted that steel for the
dental school had been bought at
3.8 cents.
None of these projects was con-
sidered in the Scent estimate, how
ever, PRIME testified.
Reproduction at present prices OF
labor and material, minus depreci-
alton, forms the basis for rate
making in utility cases.
Company Ends Evidence
Todays questioning, which ter
minated evidence given by company
witnesses, was designed to show
that local conditions we're not given
sufficient weight and the company
experts valuations are too high.
When Pirnie left the stand the
mass data gathered by public
service commission auditors was
placed in evidence. Commissioner
Howell Ellis, presiding, handled M
PRODUCTION of this matter by eX-
animation of Evans Williams, acting
chief of the commission accounting
department.
Questioning of Williams was con-
tinued by A. B. Cronk, also an
apartment owners attorney; Ed
ward H. Knight, city corporation
counsel; and James Deery, city at
torney.
William L. Ransom, New York
attorney for the company, objected
to admission of a chart showing
dividend payments made by the
company since 1924
Own Common Stock
Williams testified that there are
fourteen common stockholders. The
company is owned by Clarence
Geist of Philadelphia.
In 1924 10 per cent dividend was
declared on $5,OOOO0O of common
stock. In 1925 dividend was
skipped and the tabulation then
showed dividends ranging from II
to 245 per cent between 1926 and
1881. For the first ten months of
1882, the company paid rs per cent.
Total paid since 1924 was $5,900,000
Williams also testified that, COM
parativelS speaking the company
now is operating with few employees
and they were required to take 10
per cent salary reduction. Oct. 16
Salaries of the company have
been below par in his opinion, Will
liamS said
Geist Co. Gets Money
A per cent service charge on
gross receipts is paid monthly to
the Geist Company at Philadelphia
for Bookkeeping, Williams declared.
Geist no longer is on the pay
roll for $1,000 a month, however,
and all club dues and other dona-
tions are not figured in the operat-
ing expense of the company, he
testified.
The company keeps its books here
and follows the public service COM
mission rules regarding them, Will
liams said.
Grant County Assessor Dies