The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-05-02

Figures Held Far Too High
in Federal Court Rate
Case Hearing.
BIGGER RETURN ASKED
Utility Counsel Contends
That 7 or 8 Per Cent
Is Fair.

Questioning Of the Indianapolis
Water Company's right to include
certain unused, but potentially
useful" land in its valuation for
rate making was continued by the
state in the company's suit for
higher valuation and rates before
Albert Ward, special master in
chancery, in federal court today.
w. c. Mabee, water company
chief engineer, occupied the witness
stand again under cross examina-
ton by George w. Hufsmith, deputy
attorney-general and defense coun-
sci chief.
Hufsmith attempted to bring out
that much of the reserve land owned
by the company, and included in
its list of used and useful" proper
ties, actually is not used now and
If 1t were not owned already would
not be acquired at this time.
Protection for Future
Mabee testified, in most in
stances, that the land was needed
as a protection for the city's future
water supply and attempted to sup
port the company's contention that
it is entitled to a valuation, for
rate-making purposes, of mot less
than $26000,000," instead of the
$22,500,000. valuation set by the
.olblic service commission in 1882.
William l.. Ransom, chief coun-
St for the water company, Monday
rev Ned that the company feels it
shot. ' be given a return of or 8
per CT 1t on the $26000,000 valua-
ton, instead of slightly more than
per cent" allowed by the COM
mission on the lower valuation.
Considering each plot of ground
held by the company, the defense
chief questioned the companyS title
to portion of the canal banks,
particularly that portion occupied
by Big Four switch at the water
company's storage plant near West
street and the canal
Markers Are Removed
Mabee testified railroad company
employees had removed the COM
pany's boundary markers, which
was interpreted by Hufsmith as re-
fusal to recognize The water COM
pany's title.
Hufsmith also attacked, by his
questioning, the companys right to
use in its valuation figure five I'M
used wells in vicinity of the Broad
Ripple dam, and the Oaklandon
reservoir project property.
In the latter project, 1890 acres
of land have been acquired, but
not more than $500 acres likely are
to be flooded, Mabee admitted, and
even starting work on the reservoir
at once, it could not be ready for
use before 1888.
Objection Is Overruled
On direct examination today, Ma
bee testified that the Oaklandon
reservoir would be fed by DIT square
miles of the Fall creek water shed
would hold nearly seven billion gal
Ions of water. and its dam would be
1000 feet long, with a 50O-foct
spillway.
Over objections of Hufsmith
Ward admitted a copy of an order
by the public service commission in
1880 approving the Oaklandon prof.
ect.
The suit was brought by the
water company to enjoin enforce
ment of a rate order issued last
December by the public service
commission, finding a valuation for
the company of not less than
$22.500,000," allowing a return of
slightly more than per cent on
this figure, and setting minimum
domestic rates at SIPS.
The court action reopenS the
companys claims for higher valua-
ton, rates and rate of return.