The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-01-31

In urging adoption of the agree
ment. William H. Thompson, COM
panv attorney, admitted that there
is no adequate audit and appraisal
extant upon which Just and reason
able rates could be based.
Mr.. Minton alleged that present
rates are based on excessive valua-
ton of company properties amount
ing to $24,OO0,OO0.
That the company could not be
made to shoulder the burden OF
proof to substantiate present rates
was the basis of the motion to dis
miss.
Mr.. Thompson said that the COM
missionerS had a perfect right TO
institute a rate suit under the law,
but could not summons the COM
pany to justify present rates.
Mr.. Minton agreed that a rate
order could be issued only after
regular rate hearing, but the move
tn show cause was instituted to
give the commission data enough
TO decide whether such a hearing
should be held.
Chairman Perry Mozart of the
commission disagreed with both
views and declared that the COM
mission has full power to proceed
as it sees fit and reopen any case
and issue rate notifications at any
time.
Decision Due Tomorrow
other commissioners are Samuel
Trabue and Mole Cook.
All will pass upon the proposed
agreement and decision will be an
nounced prior to the regular hear
ing of the case TO show cause, which
is scheduled for tomorrow at 1890
a. m. the chairman announced.
Should it be accepted, the reduced
rates will be put into effect within
three days.
Mr.. Thompson asserted that re-
auctions amounting to S430,OO0
year already have been made by
the company since the merger rate
order Of 1927.
Mayor Reginald H. Sullivan, who
attended the oral argument, eStl-
mated that the new offer would
mean a saving to the city Of more
than $4,000 year.
Replies to Times Points
Others present included delega-
tiOns from the women's clubs, COM
munity clubs and numerous lawyers.
The company replies to some of
the points raised by The Times and
included in the text of the agree
ment are:
l. The contract between the In
dianapoliS Power and Light Com
pany and the Management and
Engineering Corporation for serv-
ices has been Cancelled by mutual
agreement as of Oct. l, 1888, pur-
suant to negotiations commenced
prior TO the commencement OF this
Investigation. There will be in
Guided in the respondents operat-
ing expenses only such payments
made TO the Management and En-
gineering Corporation on account
Of services rendered at the request
Of respondent.
?. The company's revenues have
substantially fiuctuated during 1882
and 1888 and it is necessary to
make q careful estimate of the re-
suits TO be expected for 1884.
3. The item Of taxes will sub
stantially affect the operating state
ment because the amounts to be
paid for 1884 will exceed those paid
in 1888.
4. The company's depreciation
rates have been publicly challenged.
The company proposes to study and
present its past depreciation history
and expenses. its gross additions and
retirements for period Of years. the
service life of its various classes of
property and the salvage therefrom
so that the question Of the propriety
Of its depreciation rates may be
fairly determined.
5. The company does not claim
that its books reflect either the &C
tual historical cost Of its property or