The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-01-18
STORE LOSS
IS LINKED TO
POWER RATES
Consumers Taking 1t On
Chin for SetbaCkS,
Minton Alleges.
BY BASIL GALLAGHER
Times STAFF Writer

Mr.. Ultimate Consumer of cleo
tricitv in Indianapolis also is al
legged to be taking it on the chin, y
a study of certain incorporating
revenue reports of the indianapolis
Power and Light Company to the
public service commission, reveal
according to Sherman Minton, pub
lie counselor.
Incorporating revenues, it was ex-
planned, are those expenses not con-
nected directly with the operation
of an electric utility and merely in
cidental to the plants primary
function.
Losses sustained in such enter
prises should not be charged against
consumers, it was asserted by utility
experts
Under the present system of the
light company, it was pointed out, if
bad judgment or management re-
suits in a loss, the consumer ulti-
mately must pay for the mistake,
conscious or otherwise.
The incorporating" revenue of
the indianapolis Power and Light
Company now being studied by Mr..
Minton and his aids preparatory to
the rate hearing Feb. relate par
| ticularly to the electric shop, mer-
chandise sales and the locally oper-
ated radio station WFBM.
From reports of the light company
to the commission, it was asserted
today that the electric shop oper-
ated for more than five years by the
light company at Meridian and
Washington streets, reported loss
of 1924 800, for which the consumer
paid.
Inheritance From Merger
The electric shop, utility experts
point out, was an inheritance from
the merged Merchants Heat and
Light Company when that light
company was combined to form the
present light concern.
Rather than sustain the loss in
the electric shop for five years and
eleven months, which was passed
on to the consumer, accountants
allege, it would have been better to
have abandoned the enterprise.
In the report of the electric shop
loss, accountants assert, the rent of
the premises is not disclosed.
Reports of the light company to
the public service commission re-
garding merchandise sales" - the
sale of electrical equipment and ap-
pliances at the Monument Circle
store-also came under fire.
Reports Are Studied
From a study of the reports on
file with the commission, account
ants declare, that from 1928 to 1882
a profit of only about $4,000 is
shown for approximately $1,25O,000
worth of sales.
This percentage of profit, ac-
cording to accountants, only
amounts to 1873 per cent average
profit for five years. According to
accountants, this margin of profit
does not provide for overhead ex-
penses, taxes, insurance or interest
on department investment.
No electrical supply store OPP
Grated solely for profit from the
enterprise could survive at such a
ridiculously low margin of profit, it
is pointed out. An individually
operated concern would have to
show at least a net profit of 10
per cent to keep open, accountants
aver.
Following is record of "merchan-
disc sales" from the Monument
Circle store from 1928 to 1882. The
figures show the amount of the
sales in dollars and the amount
charged by the light company for
selling the goods. The table is taken
from the reports of the light COM
pany to the public service commits