The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-05-11
WATER RATES
/ SUIT DELAYED
UNTIL MONDAY
Recess Ordered to Permit
State Lawyers to Study
Company Evidence.

Renewal of hearings on the n
dianapolis Water Company's federal
court suit for higher rates Wednes-
day was short lived, attorneys for
the public service commission taking
one look at the huge stack of evi-
dence introduced, and then asking
adjournment.
The recess until Monday was or
dered by Albert Ward, special mas
ter in chancery. after the bound
volumes, foot high. prepared by
George w. Fuller, New York, water
company consulting engineer, had
been submitted. Commission attor-
neys will study the exhibits before
starting cross-examination.
Fuller's valuation of the company
properties was submitted on three
bases, the total ranging as high as
$40, 667 ,978.
This figure was prepared on re-
production valuation based on an
average of costs prevailing during a
five-year period ending March 81,
1888.
Values on Three Bases
The second figure was S28, 901 ,614,
based on three-year average, while
the third figure, $27647132, was
based on prices as of April /, 1888.
Depreciation estimates, considered
IN arriving at these valuations.
ranged from 5000 for current
prices, to 100000 on the five-year
basis.
The company in its suit seeks to
enJoin enforcement of the commits
sion's December rate order setting a
$22, 100000 valuation, with a 612 per
cent return.
All three valuations include water
rights, $1,000,000; going value, ST.
100000; preliminary and develop
ment COST $325O0O, and real estate,
$3,725, 445, the figure given by
George T. Whelden, realtor, in his
testimony last week.
Engineers Study Figures
Buildings, fixtures and grounds
range from $2,760,3l9 as of April /,
to $3,303,115 for the f1ve-year pc
Rod; intakes and supply mains from
$780, 1874 to $793, 181; publication sys-
tenn from $947, 1913 to $1.O95.511; dis
tribution system from $10.753 900 TO
$ll ,223 1885,, and undistributed con-
struction costs from $3,636,536 to
$3,977 ,926.
Fuller said that in his computa-
ton he used figures submitted by
local manufacturers and contractors,
prices listed in trade journals and
personal knowledge of such work.
Hourly costs for common labor
used, he said, we're: Five-year av-
erage, 385 cents; three-year av-
erage, 375 cents, and present, 35
pents,
The figures we're being studied to-
day by commission engineers in
preparation for an attack in court
Monday on valuation of various
items in the appraisals.
Aided by Staff of 20
AAlOVllCl oCG VI 4lS VI 10 ID W DG
submitted later by Malcolm Prime,
New York, another water company
consulting engineer.
Fuller, who testified he was aided
by staff of twenty, defined going
value as difference between the
bare bones" of the company, the
equipment before it is placed in
use, and the value several years
later when the plant is operating
efficiently.
Under going value he listed the
right to divert the entire flow of
White river at Broad Ripple, $780,
900; right to flood LOO acres, now
owned by the company, above the
dam, $4,000; lands and riparian
rights on the river above Noblesville,
$3.50; and the right to flood land
above Keystone avenue on Fall creek
$4,000.