The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1926-11-06
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The necessity for a strict and thorough inquiry
into every phase of the proposed merger OF the
light plants of this city is increased by The Times
revelation of the provisions of the law IN regard to
mergers.
It is most evident that the law makers tried
best they could, to prevent fnanciers from coupling
two companies together and then place larger value
upon them than the individual units before had.
Yet the petition of the who want to merge
these plants provides for a capitalization of many
millions of dollars in excess of the present combined
valuations of the plants.
Those millions of stock and bonds must earn
dividends and interest for the men and women who
will purchase them.
In the end the people of this community will be
called upon to pay the cost.
These monopolies given what amounts to
power to tax, and this tax will be levied upon every
factory, every business every home.
Electricity is not a luxury 1t is necessity. No
modern factory can without its power and no
business succeed without it.
These companies have every shrewd legal talent
and unlimited money to hire the best of lawyers
These lawyers may be able to convince the public
service commission which has been very kind to
corporate interests that this is not merger.
OF course when they get through there will be
but one company instead of two and to the ordinary
person 1t would appear that they have merged.
What is much more likely is that when they get
through unless some strong protest is lodged there
will be but single ownership with millions of Sc
curities hoated above those which represent
the values of the two plants.
The move of consolidation is logical and should
be encouraged
There is no in paying two sets of people to
do the work which could be done by one.
The consolidation would permit the public to deal
with one set of mer and should result in lowering
of costs of electricity instead of raising it.
The public not the owners, should have the ad-
vantage of this more economical method of manage
ment
But the public will not receive the benefit If the
new company is loaded down with created values
upon which interest must be paid.
The Chamber of Commerce seems to be the log-
cal body to represent the public, but every citizen
interested
Unfortunately the present city administration is
not of character to inspire any great amount of
public confidence.
A mayor who takes jaunts for unknown purposes
to get orders from COLLINS wizards Is hardly the
man to make such fight as must be made direct
such inquiry as is needed.
The public is entitled to at least good legal
advice as these financers who back Of the pres
ent
The public service commission may be responsive
to suggestions from the public. They should not be
left to the whispered words of lawyers for the men
who are asking for a taxing power hfty-fve mil
lions of dollars.
1t is time to act and undoubtedly the Chamber
of Commerce will act All that the public wants is
fairness. It must have that 1t must not be loaded
down with a debt burden its electric bills that
will hamper and harass every other business espe-
cially the business of living.