The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-05-27
WATER RATES
CHECK GUIDED
BY COMPANY
Public Service Accountants
Given 'Handout' Figures
for TabuIationS.
oUIzzED UNDER OATH
Howell Ellis BareS System
on Which investigation
Was Conducted.

How the Indianapolis Water Com
pany checlmated original investi-
cation Of consumer data by public
service commission accountants and
substituted its own "handout fig
ures" was exposed today by Com
missioner Howell Ellis.
Having received the new rate tab
ulation consumer data for April
from Commissioner Harry K. Cuth-
bertson, Ellis cited commission &C
countants, credited with making the
tabulation. to appear before him.
After administering an oath, he
took their testimony as to how the
investigation was conducted.
This showed their data covering
total number of consumers, unit of
consumption, total consumption
revenue from old rates and revenue
from new rates was supplied ready
made, by the company.
Barred From Data
From the start, the commission
accountants admittedly, with con-
sent of the commission (although
Ellis knew nothing of it,, were
banned from gathering original
data from any basic book and were
not given even glimpse of the
consumers bill, it was revealed.
Their total contribution was
some simple arithmetic, showing
amounts of increase or decrease
and consumer data, all of which
could have been done in the state
house with the same water COM
pany figures. they admitted
Further, Webb Gilbert, chief ac-
countant, upon crosS-examination
by Ellis, admitted that the whole
data gathered for April is almost
meaningless so far as supporting
the company claim that it will lose
$4,000 a year under the compro-
mise rate is concerned.
He also said that Frank Jordan,
secretary-treasurer OF the water
company, declared April was an ex-
cessive consumption month, while
he knows that lawn sprinkling and
other summer month activities
make April low, rather than high,
consumption month, by COM
parison."
Tried to Halt Checking
Jordan, accompanied Glenn Ray
one of the accountants, to his room
in the Williams hotel to try to stor
their method of spot checking" Of
company figures after Howard S
Morse, general manager of the
company, had checkmated the orig
insl research through the commits
sion. Gilbert testified.
Gilbert said he told Ray to &c
ahead and in the spot checking 364
errors we're found, but the COM
pany figures were accepted anyway
he said.
The data showed that bills for
65,248 domestic consumers we're de-
creased So, 1882 net under the COM
promise rates set by Cuthbertson
while increases Of s4,073.0S were paid
by commercial users, S1,636.40 by in
dustrial users and S102.40 on city
metered water.
Municipal hydrant rental was re-
duced SIS, 1926, making the total net
decrease in company revenues
S9,319.19.
Files Increase Petition
AS result of the injunction sui
restraining the company from col.
Letting increased rates from the
Moynahan apartments, the com.
pany has filed a rate increase petit
ton and asks immediate restoration
of old rates.
Hearing by Cuthbertson is expect
ed to be set today.
Meanwhile, Ellis will study fur
Their the rate data, he said.
Joined by Commissioner Franz
Singleton, Ellis refused to o. K. the
compromise because of the In.
creaSes.
Ellis attempted at once To investi.
gate the new rates by applying
them to the whole of 1881 consump-
ton and asked that the work be il
charge of L. o. Livinghouse, chief o.
the tariff divisions of the commits
sion.
stopped by Commission
This was thwarted by the com.
missioners, under leadership o.
Chairman John w. McCardle, ht
said.
Whereupon, Singleton substituted
motion to investigate the Apri
billings, putting Cuthbertson il
charge.
Commissioner Jere West amended
the motion to show that Cuthbert.