The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-12-30

"by at least $24,OOO,OOO," the
public service commission
issued its order to show cause
why the electric rates in In
dianapolis should not be re-
duced.
In his petition, Mr.. Minton
charged that the said utility car
ried this property on its books as
costing the utility approximately
$59,000,000, of which at least
$24000,00 thereof is composed of
writeupS disguised as capital sur
plus and otherwise, and represents
no value"
A partial list of the tentative
conclusions reached by Mr.. Min
ton for action against the light
company are:
l. The fixed capital of the In
dianapolis Power and Light Com
pany as at Dec. 81, 1882, as reported
to the public service commission. was
more than $50 100000. Against this
figure there were depreciation re-
serves of more than 100000
leaving book costs new, less depre-
cation reserves of more than
S59,000,00O.
Merger Is Cited
2. This company (the INDIANAPOLIS
Power and Light Company was
formed as a result of a merger on
Jan. 81, 1927, thereby acquiring two
other companies, namely, Merchants
Heat and Light Company, which
had a book cost new of fixed capital
on Jan. 81, 1927 Of more than S13,-
100000, and the Indianapolis Light
and Heat Company which had a
book cost new of fixed capital on
Jan. 81, 1927 of more than $4,000
600.
Together the merged companies
had a fixed value of more than
100000, 900.
Since the merger, the gross adj
ditions, fixed capital to Aug. 81, 1888,
was more than $19,OOO,OOO, making
the total fixed capital more than
$40 ,OOO,OOO
Property discarded and written off
from Feb. 1927 to Aug. 81, 1893
was more than S6,00OO00, which left
a book cost new of more than $43,-
100000. The depreciation reserves
at Aug. 81, 1888, amounted to more
than 100000 which left book
costs, less depreciation reserves Of
more than S32,000,000.
Book Cost Indicated
3. A book cost new of approx
mately S35 500, 900, is indicated.
4. The difference between the
book costs shown in paragraph one
of more than S59,OO0,O00 and
S35, 10000 in the paragraph above
are about S24,000,O00 and is account
ed for by writeups and readjustment
Of book values not represented by
actual costs, it is alleged.
5. From tests made by the public
service commission experts, Mr..
Minton says he is satisfied that the
rate basis of the Indianapolis Power
and Light Company on an appraisal
at present prices, or any other basis,
should not exceed S35, 1000.
6. The operating gross income Of
the indianapolis Power and Light
Company available for return in
1882 figures reveal was S3,025 900,
using round numbers.
Earnings Study Made
7. The amount available for re-
turn or the ten months of 1888 was
s2,25O,0OO as against s2.3OO.0O0 for
the corresponding period Of 1892, it
is said
8. A comparison of the monthly
amounts available for return in
1888 and 1882 reveals, according to
commission data, that the down.
ward trend of 1888 was reversed in
July so that since June, earnings OF
the indianapolis Power and Light
Company have increased over the
same months of 1882.
9. A comparison Of the monthly
amounts would seem to indicate the
possible earnings for the full year
1888 would approximate S3000,000,
experts say.
10. A 6 per cent rate Of return on
what is thought to be a maximum
rate base Of S35,000,000 would yield
S2.100,000 as against indicated
earnings of 100000 or 100000
above the allowable rate stated.
Hearing on the case was set for
10 a. m. Feb. after the issuance
of the order by the public service
commission yesterday.
l.. -