Indianapolis Times, Volume 44, Number 212, Indianapolis, Marion County, 13 January 1933 — Page 17

•TAN. 13, 1033.

MARTINSVILLE DECISION GIVES RATE CUT HOPE Legal and Moral Support for ‘Depression Slashes’ From High Court. 75;' Krri)>pa-ffoirartl \nr.poprr Allinnrr WASHINGTON, Jan. 13.—L?gal nnd moral support to state public service commissions and consumers who are seeking depression cuts in electric, pas and other public utility rates may be found in the supreme court's decision shaving down th; legal investment return to 7 per cent in a Martinsville <lnd.) case. Before the depression set in, the court, in a divided opinion, '’eld the Baltimore street railways were entitled to a return of 7.44 per cent oro more on their valuation. In the Indiana case, the court unanimously, but without reversing the Baltimore decision, sets forth the doctrine that no rule can cover all the cases and that in this one, “we are unable to conclude that a 7 per cent rate of return, under the facts here disclosed, is so low as to be confiscatory.” A rate reduction ordered by the state public service commission in 1929 was upheld by the court. Wanted 8 Per Cent Return The Wabash Valley Electric Company in this ease contended that although rates to provide a 7 per cent return would pay enough to meet bonds, debt and dividend payments, etc., 8 per cent was necessary “in order to accumulate a surplus and make it easier to finance the company." Justice Sutherland in the court’s decision met this point by pointing out that street railways had competition from automobiles and busses and other expenses which might “require a larger rate of return than would be required by an electric company like appellant, which not only enjoys a practical monopoly in the field where its services are rendered, but whoso financial structure, it fairly may be assumed, is greatly strengthened by its affiliations and by the interest support of the parent company to which it belongs.” Upholds Points Sutherland then points out that If the lower rates had been in effect during one period of time involved in the case, the return would have been in excess of 7 per cent anyway. The court also upheld the public

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New Legislators Father of 8 Is New Member of Assembly

Harry M. Riedman, veteran Brookville fcuines.s man, is one new member of the 1933 Indiana legislature who believes that large families are an integral part of Ameri-

can civilization. Only 46, he is the father of eight children, with the sexes divided equally. Riedman, for the last thirteen years, has been a member of Riedman Brothers. Brookville auto dealers, organized in 1908. Prior to becoming a partner in Riedman Brothers, he engaged in the general contracting business, comprising road building,

Riedman

bridge work, and all types of brick construction. He is a Democrat. I. U. CENTERS TO OPEN Extension Work Will Be Started in East Chicago and Ft. Wayne, Pit Srirnre Srrrirr BLOOMINGTON, Ind., Jan. 13. Monday, Jan. 30, has been announced as the opening date for the second semester of the Indiana university extension center in Ft. Wayne, while on Monday, Feb. 6, the Hammond-Whiting-East Chicago I. U. center, in East Chicago, will open. Floyd R. Neff is director of the Ft. Wayne center and Hugh W. Norman of the East Chicago division. Indiana university extension officials say that thirty-three faculty members will be in charge of the eighty courses to be offered at Ft. Wayne during the second semester. The curriculum will cover twentyfive different subjects. Twentythree different courses will be offered at East Chicago by thirteen special extension lecturers. service commissiion in other legal points involved, including the policy of treating the Martinsville plant and rates as a single unit for rate determination instead of including the company’s wide electric network. The supreme court seldom gets as deep into public utility cases as to determine the exact percentage of return on investment, most of the decisions revolving around questions of the valuation upon which the rate is fixed.

CHINESE STRIFE INEVITABLE, IS SOKOLSKY VIEW Lecturer Says There Can Be Unity of Government in Far Eastern Land. ' The trouble in China and Manchuria at the present time could not be avoided any more than a chemical reaction could be avoided when two chemicals are mixed, George E. Sokolsky, American newspaper man, told a Town Hall audij ence at English's today. In tracing the chnages in China. 1 Sokolsky showed that when the J seqond "western civilization was | forced” upon China, a series ot revolutions occurred. These revolutions, or changes, in Shina, began in 1830, when she came into contact with anew civilization, he said. The first revolution was industrial. The second revolution was Chris- ! tianity, and this brought a change

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THE INDTANAHMS TIMES

in “plural marriages” and a social upheaval. Then came the Nationalist revoi lution. which changed the concep--1 tion of government and started the breaking up of the government of China until today there are many governments, or governmental provinces, besides a Communistic state governing sixty million peoples and having an army of 300.000 “There ran be no unity of gov- ■ ernment in China, no real power,” he said in naming the different governments in China. “The whole tendency in China is to break up into smaller units,” he declared and traced the influences of Russia. France. Germany, Great Britain and Japan upon the celestial land.

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