Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1922-03-22

of franchise rights. stocks, dividends and
discount, far short of the face value Of
such bonds and upon which the present
company is compelled to pay staged
ing sum annually. Last year the de,
auctions from the gross earnings or salC
company charged to bond interest, etc.,
totaled $645, O6T9 "a.
"Officials Of Indianapolis Street Rail
way Company contend that the bonded
Indebtedness has nothing to do Will
rates. However, the committee is Of the
opinion that such a burden materially
affects the net earnings of the company
incidentally impedes the expenditure OF
money in other channels such as en-
umerated under the heading or Con
tructiOn Expenditures"
TERMINAL CONTRACT
MADE IN 1909.
"Our investigation shows that on Dec.
g. 1902, the Indianapolis Traction and
Terminal Company contracted with a
subsidiary company, namely: Indiana
Company" to procure certain parcels OF
real estate and to erect there on terminal
buildings, power houses, repair shops
stations, depots shops, offices and other
buildings and to install therein such
dynamOe, engines and other equipment,
furniture, fixtures and equipment for
production and application OF electric
power for operation of street railway
system to construct and equip certain
lines Of railway and to convey same to
G dianapoiis Street Hallway Company
clear Of membranes in consideration
of delivery to said Indiana company,
The inventory purports that the ONCE
building Terminal building is valued
at S1,OS7, 10000 Officials Of the com
pany stated to US that their West Wash
ington Street Power House is antedated
and that all that could be realized on
1t would be the salvage. However, after
the said inventory was submitted we
notice that said power house Is there
valued at 81 ,173 1928, being one OF the
many items listed under tangible
property upon which sum total said
company Is permitted to earn a return.
Another striking feature is the state
ment as submitted by the company rol
the years 1910 and 1921, both inclusive
disclosing the expenditure of S430 4l6. AZ
or an average of S36, 2S4.71 per year foi
as against s1,075,501.07, or an average OF
,625 per year for said twelve years
for the maintenance of paving.
This is one phase Of the maintenance
charges which appear to the committee
as excessive.
our investigation fails to disclose any
obvious charge Of depreciation which
the company has undoubtedly taken, but
which would materially enhance tht
tangible assets of the company in the
absence OF charge.
ASK EXPERT TO
AUDIT BOOKS.
1T is the concensus Of opinion Of tht
subcommittee that the said company'S
books should be thoroughly audited by
an expert, and we suggest that such
audit verify all capital transactions re
lating to the bonded indebtedness and
stocks OF the company, with the view
OF arriving at how much tangible value
is thus represented. and with the idea
in view of segregating capital items from
expense items and that depreciation
should likewise be verified over period
of years.
I'VE trust that you will give this mat
ter your prompt attention and that in the
event there is no fund out OF which such
expert may be paid we urge the passage
Of an ordinance creating such fund
which we are advised should not exceed
the sum of $4,000
The committee has consulted an audi