The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-12-17
FURTHER CUTS
IN CITY WATER
RATE POSSIBLE
Indication Is That Reduction
Will Be Upheld, With
New Slash Likely.
FINAL TESTIMONY GIVEN
Company Valuations Dealt
Heavy Blow by Realty
Board Members.

Fate of indianapolis Water Com
pany consumers, in regard to per-
manent rate reductions, rests today
With members of the public service
commission.
Final testimony in the case was
completed before the commission
Friday afternoon.
Company attorneys were given
until Monday to file brief support
ing their effort to restore and retain
high rates. and opposition attorneys
must file their final reply by Thurs
day.
The briefs were ordered by Com
missioner Howell Ellis, presiding,
and who will write the permanent
rate order.
Further Cuts Possible
Tt appeared that all reductions
made by the emergency rate order
of the commission last spring will
be retained and further reductions
also may follow.
Telling blows we're dealt the COM
pany evidence by witnesses appear
ing at the call of the city admin
istration
Attorneys for the city, civic clubs,
and apartment house owners fought
the legal battle to reduce water
rates.
Evidence offered by the city stood,
without rebuttal, when the case
closed.
Members of the indianapolis Real
Estate Board had testified that land
valuations set by the company were
double the proper appraisals. while
other testimony showed values on
buildings we're excessive in all in
stances by IS per cent and in some
cases more.
Per Cent Held Ample
Dick Miller, former bank preSi-
dent, testifying as an investment
broker said that a per cent re-
turn would be ample to attract all
capital needed by the water COM
pany.
Company experts had argued for
an per cent return. as being neces-
sary to attract capital at this time.
Miller was put on the stand by
A. B. Cronk, attorney for apartment
house owners.
Cronk's colleague, Attorney Harry
K. Cuthbertson, former member OF
the public service commission, and
author of the emergency rate reduc-
ton order, returned Harry Wenger,
chief commission engineer, to the
stand as his witness.
Attorney Fights Contention
Wenger then offered the figure Of
$31 $50 as sufficient for "organiza-
ton expense" which had been in
Guided by the company at 100000.
The commission engineer stated
that this item had been included in
his appraisal with the Is per cent
levied for "undistributed construc-
ton COSTS" Such, procedure is GUS
tomary, he said, and expressed the
opinion that the 100000 set out
for "undistributed construction
costs" by the company was ample
to include the 100000 item.
William L. Ransom, New York at
torney for the company, sought to
tear down this contention by cross
examination and Ellis questioned
Wenger to show that CuthbertSon,
and not himself, had returned the
commission engineer to the stand.
Moore Vigorously Quizzed
David F. Smith. realtor, testified
to a $7,615 land valuation for the
company's property at Floral park.
. Other witnesses Friday afternoon
were Louis c. Brandt, contractor
and member OF the city board of
works, and A. H. Moore, city en-
gineer.
The latter was given a rigid cross
examination by Ransom, to show
that many items were not included
in his estimate of cost of replacing
water mains in various zones of
tho ritv