The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1914-02-19
President of Works Board
Appears Before C0mmis-
sion Today on the Water
Works Matter.
FAMILIAR WITH CASE
Says Local Company Wants
Its Book Valuation Taken
AS Basis For Rate Max.
ing.

After President Bavis of the board
Of public works, had been requested
to leave the board room today by City
Clerk Bescher, who informed him he
wanted to talk about him." and Mr.
Bavis had complied, the clerk without
delay explained his mysterious action.
Il think Mr.. Bavis should be sent
to indianapolis during the hearing of
the water works case before the state
commission, al the city's expense" EN-
phatically declared Bescher, address,
ing his remarks to the mayor and the
TWO board members. Il did not want
to bring this matter up in his pres
ence, because he probably would op-
pose me on the ground that his pres
ence in Indianapolis would mean an
unnecessary expense to the city. He
would be willing to go, but would want
TO pay his own expenses. Of course
the city should pay his expenses, and
it would be to the best interests Of
the city to have him in Indianapolis,
because he is thoroughly familiar with
all the details Of the water works case
Several citizens have called on me with
the request that the board take such
action as l now recommend. Mr. Ba-
Wis was not asked to go to Indianapo-
lis by City Attorney Bond, but he
should be sent there"
Mayor Robbins said Mr. Bavis had
suggested to him that probably it
might be we'll if he appeared before
the state commission in the water
works case, but would not do so unless
it were absolutely necessary. The
mayor said he thought 1t would be to
the best interests of the city if Mr..
BaV1s were sent, and the two board
members then voted to have the presi-
dent appear before the commission
MIR. Bavis was recalled into the
room and Informed of the boards &C
ton. He made no comment, except
to say he would leave for the capital
city at noon.
Includes "Watered" Stock.
Before leaving Mr. Bavis charged
that the Richmond City Water Works
company has been consistently seek
ing to make it's physical valuation
equal it's book valuation, which latter
valuation is claimed to be in excess
OF $l,20G,0OO. This book valuation,
which the company would like to have
used as basis for rate making, in
cludes $296,O00 of "watered" common
stock and $4,000 of "watered" pre-
ferred stock.
From the company's own statement
Mr. Bavis showed that the $25O.OOO
common stock, issue of July 16, 1883,
was sold for S153,250, a loss of $96,-
600 on the issue.
March 6, 1909, the company declar-
ed 50 per cent stock dividend On the
$25O,OO0 stock issue of 1888, which
provided for the distribution Of $125,-
O00 Of new stock to the stockholders,
and which brought the total common
stock up to $375,GOO
Order Stock Increase.
On December II, 1910, the directors
ordered an increase Of the capital
stock from 1915, 900 to $55O,000, an In
crease Of $175,000. Four days later
the company cut another melon by
declaring a stock dividend of 20 per
cent on 1915, 900 of stock, and distri-
buted the $4,000 Of addition common
stock among it's stockholders.
At that time there was a total of
$450,000 common stock issued and
100000 unissued
April II, 1913, a 100000 preferred
stock issue was authorized, and on
April 80, $35O,O00 Of the above stock
sold at 81, netting S839,OOO. The re-
naming per cent, $10,500, was
charged to surplus and $35O,OOO was
credited to capital stock account. OF
this stock $4,000 was not issued