The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-06-17
$1.08 Minimum, $4,000
Saving to City Kept
in Schedule.
INCREASE IS SLASHED
Boost in Rates to Large
Users Is Reduced by
CuthbertSon.
BY DANIEL NJ. KIDNEY

commissioner HARRY K. CuJnDert-
son today presented a new Indian
apolis Water Company rate sched-
ule, for passage by members of the
public service commission which
retains all relief granted consumers
and the city in the order of April
|, and scales apartment house build
ing increases from the former $7.72
peak to IS cents.
Cut of 5000 ,61768 is made in COM
pany revenues from the old rates
which prevailed before the April
compromise and a $l4761768 rev.
enue reduction from the compro-
mise rates.
The company had sought to keep
its revenue reduction down to
$4,000 a year
CuthbertSons order is based on
s per cent return on valuation of
$21,118252, which he submits is an
estimate made by the companys
own expert at the hearings earlier
in the week.
S1.OS Minimum Retained
Under the new rate schedule. the
S1.08 minimum for the first 500
cubic feet consumption and the
$4,000 cut in hydrant rental costs
10 the city are retained.
The following rate structure then
is set up;
First 500 cubic feet. 21ls cents.
next 1900, 10 cents; $500, Is cents;
1900 ii cents; $1,000, IL cents: 20
900, 10 cents; $4,000, 8 cents. and
over 100000, 6 cents.
The April compromise rates we're
IL cents for the first 1000 cubic
feet; II cents next 5000: 1872 cents
next 10000; 10 cents next 10000: 8
cents next $4,000, and s cents next
100000.
Old rates, before the compromise.
were:
First 700, 2112 cents: next 1890.
II cents; 10000, 10 cents: $4,000 3
cents, and over 100000, 6 cents.
Minimum monthly charge for
meters above five -eigtts inch (the
common household size) remains
the same as in the compromise and
pre-compromise rate schedules.
Seen as Consumers Victory
The Cuthbertson order was
viewed as further victory for con-
SumerS and a defeat for the COM
pany, which sought a new sched-
ule as an emergency measure after
the Moynahan apartments secured
an Injunction against collection of
increases set out in the compromise
agreement.
If adopted, these new rates will
prevail until audit and appraisal
of the company properties is com
pleted by commission engineers
and accountants, and final rate
schedule set up on the basis of the
value disclosed.
Malcolm PRIME, New York engi-
neer, who appeared az a company
expert. had set out this value as
being 26,283,152.
But CuthbertSon himself intro
duced the United States suprems
court valuation of S19, 000, 900 in 1924.
and by PRIME estimates established
the $2l, 1882 valuation. The pro-
cess he used is set out in the order
itself.
Sets Per Cent Return
A per cent return is ample at
TINS time, the order sets out.
The order agrees with the COM
pany contention that an emergency
exists, but uses the emergency to
benefit the consumers, who are
greatest sufferers.
II passed, it may be taken b fed
eral court, where utilities now are
going almost. daily to stop any rate
reductions.
Both Commissioners Howell e.
lis and Frank Singleton announced
before the afternoon conference that
they Will oppose its passage, as they
did the former compromise.
Il am opposed to any increase
for any one over the old rates Ellis
said.
CuthbertsOn 10 Fight
Singleton said he win contend
that, under the compromise order,
the company is earning a Al per
cent return on the highest value 1t
set out and no emergency exists for
change at this time.
Cuthbertson said he Ia ready to
hight for passage OF his new rate
schedule, and expected the support
OF Chairman John w. McCardts
and Commissioner Jere West, who
voted for the compromise rate order
Of April l.
People want relief and not a
lot Of rhetoric from the publie sep-
vice commissioners at this time" he
commented.