The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1912-12-30

tPalladium:
AssaiIing Mr. Dills reputation for
yeracity is foreign to my intentions
When he says. however, there is no
watered stock issued by his company,
he simply bubbles with terms.
Mr. Dill would not deliberately mis-
state a thing, but a mis-statement can
be made and believed, in a measure
to be true
If I had stated that stock divi-
bends" of 100000 had been made, MIR
Dill would never have made the denial
/ take the position that there is as
much difference between 'watered
stock" and stock dividends" as there
is between counterfeit coin" and
spurious money" Both are counter
felt
From the accountants record al the
! City Hall, the issue of <125.000 tas the
5000, 600 are in two issues was paid
for from the accumulated surplus OF
the company; if they were paid for in
this way. then the records should show
where and how the money has been
used 10 enhance the physical value of
the plant 10 the equivalent of its face
value issue
To demonstrate the legitimacy of
the transaction, Mr.. Dill. il will be
necessary for you TO show from your
records that the accumulated surplus
did actually exist. and the issue OF
stock was paid for from the alleged
accumulated surplus, into the treasury
OF the company. and applied to in
croasing the physical valuation of the
plant the equivalent of the stock is
sue.
In the absence of such information.
the public are not 10 be blamed if they
conclude that no money was paid into
the treasury of the company for
this stock, and its issue was for the
lowering the percentage of profits
paid from the plants earnings. with
out affecting the volume; also 10 Gre
ate additional liabilities upon which
/ dividends are to be paid. If that isn't
watered stock, Mr.. Dill, what is it?
! In regard to the valuation of the
+ pldnJ, MI Illl says bOJn reports
were approximately 100000" mean
! ing Mr. Maury's and Mr. Alyord's APP
praisement.
Here again Mr. Dill side steps the
issue. ! have never questioned the
/ qualifications of Mr., Maury or Mr.. AL
word. on the contrary, l have quoted
| Mr.. AlvOrd as an authority to establish
the Injustice of the plants. alleged val
| ue.
Against the protest of the board of
works, the Richmond City Water
| Works insisted that the method to be
employed III determining the plants
value, must be on the cost of reproduc-
ton, which means at the present day
| prices of all material entering into the
plant, that has been in use, largely,
/ % years or more.
| will again quote Mr.. Alvord in
whom Mr.. Dill places such deserved
confidence, and in so doing, will ask
Mr.. Dill why he does not show the
same confidence in his judgment on
the injustice of the method of which
! Mr.. Alvord speaks as follows: That
determining the valuation on the cost
! of reproduction logically includes,
not only the cost of reproducing the
! plant, but also the cost of reproducing
| the revenue"
| This means the including of every
dollar that has been spent, wisely or
! fOOlishly, to increase the plants power
as a revenue producer; it includes by
| drants, meters, service pipes and ma
! tpria1 US4d in all extensions that tho
! city and people have heretofore paid
for, entering into the cost of reproduc-
! ton, and the success achieved is val
ued at 100000 which is classified as
| Going Value" all of which is sued
! to constitute the valuation upon which
is based the rates to be charged the
consumer for water, adequate to sup
ply profits to the Richmond City Wa