The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1926-11-19
SUSPICIOUS HASTE

resident of this city.
The zeal suggests that it money-and
every dollar that these expect to profit must
eventually be paid by the men and women who
work and live in this city.
These fnanciers are asking that they be per-
mitted to link the two electric companies into one
plant and to issue to themselves more than fifty
five millions of dollars In bonds and various sorts
of stocks.
The reason for the haste is, of course, quite ap-
parent There is hole in the present public utility
law. There is at present no power in that commits"
sion to control those called holding COM
panies" which created from time to time to
either hide watered stocks to make permanent
control of companies while the real ownership is
elsewhere, mainly among the widows and orphans"
for whom fearful pleas be made later.
The corporations defeated proposal to remedy
this defect at the last Legislature. With more gen
era education as to just what these holding COM
panies do in the way of escaping public CONTROL
there is reason to believe that the hole in the Jaw
will be plugged when the Legislature meets again.
So the real haste is a race between these men
who hope to escape control and the meeting Of the
Legislature.
It will be unfortunate if the members of the
public service commission let themselves be led into
obeyng the pleas of these men engaged in the mer-
ger
No would object to real merger brought
within the law and valued according to the law That
does not fit the purposes Of the nanciers who have
the vision of those ffty-fve millions of stocks to
play with.
There should be but company to furnish
electricity. There should be an economically man.
aged company with sufficient facilities to furnish
electricity at that will enable this city to
pete with other cities in manufacturing
But the plan proposed is at least open to scru-
-14;k31 4oI
that old bonds, worth dollar for dollar be taken up
and that new bonds be issued at the rate of SO cents
the dollar.
There will be thirty-two millions of dollars
worth of these bonds, If the plan is approved
That means the pleasant commission of approx
mately two and one-quarter millions of dollars for the
sale Of these bonds or their transfer.
There is further shrinkage in the preferred
stocks, which furnish more commissions to the
fnancers
In the meantime, there is no suggestion that the
two plants worth anything like ffty-fve millions
Of dollars.
If the commission feels the urge Of action, might
it not be suggested that the members get busy on
that mandatory provision of the law which says that
it shall place valuation all property of all utii
ties used and usabe."
Unfortunately the commission seems to have
shown haste in regard to the values of these two
properties has before it no appraisal which could
be used basis of judgment in granting power to
food the with these millions of securi-
ties.
There is provision of the law that when two
companies merged the capitalization of the
merged shall not be in excess Of the COM
bned capitalization of the merged properties. That
would, if followed here result in a capitalization
many millions less than is proposed.
But such method is to be followed. Instead
the subterfuge of purchaser of the two plants is
adopted and this new purchaser, another of those
"soulless" creations of law asks for much more than
would be permitted had the companies agreed to
join forces in trying to serve this community with
electricity.
The real fight behind the formal proceedings Of
the commission is to get money the peoples
money.
1t is fight to gain those huge commissions on
stocks and bonds 1t is a fight to create dollars
through permission of the peoples representatives.
1t is significant that every lawyer representing
the public is asking delay and that every lawyer
the corporations is urging haste.
The Attorney General, the corporation counsel
Of this city, the lawyers for the Chamber of Com
merce and the lawyers for the civic clubs are only
asking time to have look behind the figures and
find out what it is all about.
There is nothing unreasonable in that. If the
deal is legitimate and in the public good, the men
who propose it should be eager to defend it.
The commission stands charged by the attor-
ey for this city with having been selected with a
lew of favoring corporations owning public utili
es, and specifically the who control these utili-
Ties.
The public commission can to some extent allay
suspicion thus directed against itself if it yields to
the demands of those who represent the public and
show less speed in helping these men to get what
they want.
Delay can not injure their plans. No one is 60
ing to steal their light plants run away with their
wiresat least the wires over which they send out
heir power and light There is less guarantee as to
my political wires which they may have
HE UNITED STATES AND LATIN