The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1926-12-18

hearing on the proposed merger OF
the Indianapolis Light and Heat
Company and Merchants Heat and
Light Company that he has been
told that the two utilities are con-
tinuing to give rebates to favored
customers.
Half Million
This practice, he said, Is costing
the small power and light users of
Indianapolis half a million dollars a
year.
The Indianapolis News is one of
those receiving rebates, he said he
has been told.
1.-The commissioners will not ig-
more these charges of the attorney
general" Wampler said. 1T is de-
termined to go to the bottom of the
matter. Those guilty should be
brought before the bar of public
opinion and. If possible, prosecuted"
Soon as Possible
The commission will take the mat
ter in hand as soon as possible, he
said, but that may not be until the
commission has proceeded with
the hearing on the merger petition.
1t will take commission engineers
and accountants some time to check
the books of the company and
gather evidence to prove or dis
prove the rebate charges. he said.
Wampler declared he believed the
other commissioners felt the same
as he did in the matter.
GilliOm Approves
Gilliom reiterated t. lay the
charges declaring that he had been
informed, he believed reliably" that
rebates are still being given by the
electric companies to the extent of
$500,00 per year and that these spe-
cial rate records are kept in secret
ledgers."
II am heartily in accord with the
commissions desire to unearth the
facts to substantiate these charges"
the attorney general declared. "In
fact, 1 advised them to do so when
made these charges public.
IF the facts warrant l will use
every Apower of this office to bring
about Just punishment of offenders.
We stand ready and anxious to
prosecute any such secret and crimi-
nal practices that are brought to our
attention by the commission"
McCardle NOncOmmittal
Chairman John McCardle remained
somewhat noncommittal regarding
the move, declaring that as yet it
had not been discussed at a commits
sion conference and that aside from
the Gilliom charges he knew little
about the rebates at this time.
He pointe dout that he had been a
leader in getting data in 1924 when
the two utilities were fined $4,000
apiece for giving rebate to the In.
dianapolis News and others.
Hearing Wednesday
The hearing on the merits Of the
petition to merge the two local i-elec-
trio utilities with a capitalization of
$55,OOO,OOO will begin Wednesday at
a. m., the commission decided late
Friday.
Indianapolis bankers aided Harley
Clarke, Chicago utilities promoter.
to- secure an early hearing, it is be-
lieved.
Attorneys representing interests
opposing the merger at what they
term excessive capitalization"
agreed to an early hearing with the
understanding that they would be
given ample time to secure their
own evidence, after the utilities and
commission evidence has been intro
duced, or they were unsuccessful in
opposing the setting of an early date
and the triple combination of bank
ers, Clarke and the commission
Jammed through the early date and
made them like it." -.
Hearing Wednesday
One of these alternatives pre-
vailed. for the hearing date for the
merger petition was set for next
Wednesday at 8 a. m. 1t will be held
in the chamber of the House of Rep.
resentatives.
Such was the announcement made
by Commissioner Frank Wampler
following a conference in the Office
of Frank McCardle. chairman of the
public service commission, Friday
Those attending were the
bankers, Clarke. the commissioners
and opposing attorneys. The meet.
ing was closed to reporters and
those who attended were non-com-
initial concerning it.
Wampler announced that all par
ties agreed to the early date.
If they did it was no. without
for vigorous protest could
be heard in the Railways. Voices
Of attorneys. fighting for time to
bring in their own valuation figures
as evidence, to be placed alongside
those Of the conn '2a's engineer