The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1913-09-01

With total resources amount
ing to nearly S8,000.000 more
than can be shown by the City
of Richmond, according to the
assessed valuation of all real and
personal property within the
city limits, The United Gas and
Electric corporation, which con-
trols the Light, Heat and Power
company, will possess a great
advantage in the threatened
rate fight between the latter
company and the city's light
plant. Under the new state law
regulating public utility compan-
les, the state public service com
mission will be the final arbiter
as to whether the competition
between the two local concerns
will be on the basis of fairness
or shall be waged with all the
bitterness and loss of cut-throat
methods.
A Holding" Corporations Power.
The United Gas and Electric corpor-
alton is a holding" corporation.
That is. it is a corporation formed to
own, control and operate other cor
porations through stock ownership or
control. This corporation owns or
controls directly four public service
companies. Ii also owns OF controls
two other holding" companies. One.
the Lancaster County Railway and
Light company owns or controls four
public service companies. The other,
the United Gas and Electric company
Corporation is used in the parent con.
GERMS corporate titlel. owns or con-
trolls ten public service companies.
Among these ten is the local Light,
Heat and Power company. The local
company, however, is backed by all
the millions and influence of the par.
ent holding" concern, The United
Gas and Electric corporation
Over s23.ooo,ooo Resources.
The United Gas and Electric cor.
poration has total outstanding cap
itaIization of S23,331,e2o. This 10
nearly $4,000, COO more than the total
assessed valuation Of all property In
the city of Richmond which amounts
to s15,772,2o6. An idea of what re-
sources the local municipal plant will
be combating unless the state public
service commission DEGREES fair COM
petition, is apparent from these fig
ures.
Should the state utilities c.--mis-
sion decree that the Light. Heat anu
Power company may reduce its light
and power rates for electricity TO any
point 1t wishes, regardless OF its cost
of production. the bars will be down
for the practical ruination of the mu-
nicipal plant The Light, Heat and
Power company could reduce rates TO
so low a point that both companies
could do business only at a great loss.
For the city this would be irreparable.
II would have TO make good the enor-
nous losses incident to such competi-
tion. The United Gas and Electric
corporation. however. could charge its
seventeen public service companies IL
owns or controls. Furthermore. the
loss to the latter concern would be
far less than to the city. The Light.
Heat and Power company does approx
imately but one-half as much business
per annum in it's electrical department
as the city's electric plant
A Fortune at Stake.
The stake would be well worth the
fight. A monopoly OF the local light
ing and power field would easily be
worth a half million dollars and more
TO the United Gas and Electric corpor-
alton II could afford to loose $780,
900 or more if for every dollar 1t lost
the city were to loose a dollar or
more. Such a loss TO the city would
mean just one ending-the municipal