Evening Republican, Volume 18, Number 74, Rensselaer, Jasper County, 27 March 1914 — ELECTRICITY COST IN INDIANA CITIES [ARTICLE]

ELECTRICITY COST IN INDIANA CITIES

Investigation Shows That Prices Vary and That Charges in Lafayette Are Excessive. \

Apropos to the recent telephone rate discussion, interest will naturally be felt in an appeal made to the Public Service Commission by patrons of the Murdock electricity plant in Lafayette The plan of investigation being' carried on in The News sustains the method taken by The Republican to as. certain what the telephone rates were in Indiana cities similar to Rensselaer.

The investigation which E. I. Lewis, a staff correspondent for The News, is making, is the same made by The Republican, except that inquiry is being made into the cost of electricity in many cities, and that Mr. Lewis is visiting the cities personally instead of addressing questions to some person in the cities where the rate is desired. The Murdocks at Lafayette constitute a corporation inimical to the success of manufacturing industries and-providing a rich revenue for a close corporation which benefits from controlling a utility of a public character. Not only do the Murdocks own the street car system and interurban lines but also the lighting and power plants. The articles so far written by Mr. Lewis show that the Murdocks have made the most of their opportunity and that the users of electricity for light and power have been “held up” to pay a rate that has no justification based upon experiences in other cities the size of Lafayette. The investigation shows conclusively that the utilities of the country were sadly in need of regulation and that there is possible great good either for the commission or for laws regulating rates and so classified as to place cities and towns o<f similar size on a rate that is uniform or delegating to city councils the power to regulate the rates within prescribed limits. The last legislature established the commission plan and we believe it will prove of great good, although it will probably be expensive in its operation. Some of the discoveries of Mr. Lewis will prove interesting. For the minimum amount of electricity for lights;, that is, from 1 to 50 kilowatt hours, Lafayette charges 9 cents and Anderson 6. The disparity becomes greater as the use increases, thus making it possible for plants using electric power dn Anderson to procure their “juice” at half the rate or less paid at Lafayette. For instance, if from 8,000 to 25,000 Kilowatt hours are used the rate at Anderson is 1.50 cents, while at Lafayette the rate is 3 cents. The light rate for 1,000 or more kilowatt hours at Anderson is 3 and at Lafayette 7 cents. Mr. Lewis shows that a department store at Lafayette last month paid for light and power $89.49, While the same'amount of light and power could have been, had at Anderson for $40.56, c saving of $48.93. and that the Anderson company is making from $60,000 to $65,000 a year., Thus the Murdocks are receiving from one Lafayette store alone almost SSO a month more than would be required in Anderson. Off course, the businessman must regulate his prices to make that amount more than otherwise and the public pays the freight. The Richmond rate is practically the same as the Anderson rate, virtually half that charged at Lafayette.

The- Anderson plant,--whichvJs equal to the Lafayette plant fn every manner, cost only $225,000. The Murdocks have their plant capitalized for $900,000, and want the Public Service Commission to allow them to earn an annual dividend on $675,000 worth of watered stock. The injustice of this is apparent to every one and the Public Service Commission of Indiana will fall far short of its duty to the public if it dpes not regulate all utilities for complete justice t the people. The Murdocks have kept many small manufacturing industries out of Lafayette because they wanted twice the pay for power asked for in other cities and they have thus retarded the city’s growth and the interests of all Lafayette people while living in the luxury of their unfair profit. /

The Republican wishes to advise all interested in this important and timely subject to read the articles Mr. Lewis is writing and to inform themselves so that they will be able to do a citizen’s duty and send to the legislature men who will not fall in line with the protected corporations but devote themselves to the support of the “square deal” for the people.