The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-01-05
PROMISES OF
POWER SAVINGS
CALLED MYTH
Benefits Expected by City
From Merger Never
Seen, Is Claim.
CHARGE EXPENSES GROW
Costs of Operation Rise
More Than Revenue,
ProberS Say.
CHARGE EXPENSES GROW
BY BASIL GALLAGHER
Times STAFF Writer

Instead of savings being effected
after the merger, presumably for the
benefit of the public, sworn state
ments to the public service commits
sion by officials of the Indianapolis
Power and Light Company show
that expenses have increased more
than revenue, The Times was in
formed today.
This state of affairs is revealed IN
the investigation Of the light com
pany by Sherman MintOn, public
counselor. who has obtained an
order to show cause why electric
rates in indianapolis should not be
reduced. Hearing has been set Tor
Feb /.
In granting the petition for the
merger of the Indianapolis Light
and Heat Company and the Mer-
chants Heat and Light Company,
Jan. 10, 1927, the public service COM
mission made the following state
ment:
The evidence clearly shows that
q considerable saving can be effected
by the unified operation of the two
companies. one group Of officers,
engineers, accountants and clerks
can be eliminated entirely. The
combined maintenance of duplicate
properties will be avoided and the
waste of money in a competitive et-
fort to get new business will be
ended"
The following statistics, showing
total revenues, expenses and gross
revenues. as revealed in reports filed
with the public service commission,
are given for the purpose of show
ing the increase of each of these
figures as compared with the COM
bined figures of the two operating
companies prior to the merger.
The statistics show that the total
average revenue for the last five
years amounts to S9,976,416, an aver
age increase of $1,596, SGT over the
figures for 1926.
Expenses Increase, Is Claim
This is equal. according to pub
lie service investigators, to an aver
age increase in total revenue of
1905 per cent.
The expenses for the last five
years average S7.002 ,357, or an aver
age increase of $1,293,927 over the
1926 period.
The above figures which have
been reported to the public service
commission show that while the
total revenues have increased 1905
per cent, expenses have increased
22.66 per cent.
Figures show that the average
total revenue for the last five years
amounted to $9,976,416 or $1,586. 567
more than the revenue of the COM
bined companies the Indianapolis
Light and Heat Company and the
Merchants Heat and Light Com
pany) in 1926. This is equal to an
average increase of 1905 per cent.
The expenses for the last five
years average $7,OO2, 1857, or an aver
age increase of 81, 293,927.
Table Is Reproduced
The above figures, according to
utility experts, show that while the
revenues of the indianapolis Power
and Light Company have increased
1905 per cent, expenses have gone
up 22.66 per cent.
An accountant has submitted
some adjusted figures on expense
and gross income to the public serv-
ice commission to determine alleged
excessive charges against consum-
ers in the matter of total revenues
expenses and gross income.
AS an example of these alleged
overcharges, the following adjust
ed" figures are shown: