The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-02-03

Expectation that electricity
consumption in 1884 will in
crease by 10 per cent gave
grounds for the commissions
anticipation that the total
rate benefits would be $685.
900 this year.
Sherman Minton, public counselor,
asserted that the utility was earn
ing 100000 year in excess of a
fair return on its used and useful
property.
Suburban Rate Cut
The proposal will cut the mini
mum monthly rate of consumers
from 30 cents to IS cents, and will
reduce the minimum rate for subur-
ban and rurol customers from $1.35
to ST. a month.
Reduction of rates follows fight
instigated by The Times to bring
relief to the consumers of this city
IN the matter of electric rates.
Eight months ago, The Times en-
gagged accountants to examine all
the available records of the light
company.
The investigation by The Times
accountants revealed alleged dis
crepancies in the reports of the
company to the public service COM
mission, among them being an al
legged writeup Of more than $24,JOO,-
600 IN the physical property value
OF the company.
Door Not Closed
1t was stated in the informal an
nouncement today that acceptance
Of the companys proposal to re-
duce rates would not close the door
to proposed appraisals of the actual
value of the property of the In
dianapoliS Power and Light Com
pany on which electric rates to con-
sumers are based
Evidence gathered by The Times
in its survey of the electric Sit
uation in Indianapolis reveals that
it is essential that an impartial and
fair appraisal of the utility be made
without delay.
Investigators for The Times also
urged the commission to make
thorough audit of the books and
accounts of the company. Utility
experts assert that it is necessary
that the consumers have a thorough
knowledge Of alleged inter company
practices before a fair rate can be
determined.
The formal order to be issued
Monday, it was learned, was ar
rived at following a long series Of
conferences among commission
members, attorneys for the light
company and rate experts. Mayor
Reginald H. Sullivan and James
Deery, city attorney, were at the
public service commission office to-
day, but did not attend the confer
ence.
In the series Of more than twen-
ty exclusive articles by The Times
exposing alleged conditions in the
local light company, it was shown
that indianapolis pays higher resi-
dence electric rates than twelve Of
the largest cities in the nation, in
Guiding New York, Philadelphia and
Milwaukee.
Order Was Issued
Following The Times expose, the
public service commission issued an
order to show cause why electric
rates in Indianapolis should not be
reduced. The hearing set for Feb.
/. in which the light company was
ordered to appear. was ayerted by
the compromise effected today.
Certain sources in utility circles,
The Times learned, strenuously OBJ
jected to the commissions accep-
lance today Of the proposed reduc-
ton, contending it was insufficient.
But utility experts consulted by
The Times strongly favored the
commissions action, contending
that any sort of a reduction is good,
providing the door is left open for
fair appraisals Of the company's
property and the chance Of further
reductions.