The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1926-11-15

legeS.
Sale of bonds and preferred stock
of the utilities below par was
authorized by the public service
bodies as result of the agreements,
according to the complaint.
"Thereupon said conspirators
would themselves, or by and through
their agents and confederates and
holding companies. purchase said
bonds and preferred stocks at low
figures and market and sell the same
subsequently at par or at premium
and thereby reap large sums through
such manipulations, while the said
operating companies upon which the
obligation of bonds and preferred
stocks would be compelled by in
crease Of rates to the public, to pay
the charges and make good return
upon the par value of the securities"
was Fuckers outline of the result.
Monopolization and destruction of
competition with a view of raising
the rates in the cities where there
was no competing company followed,
/ az III NAhS W the complaint.
City Hindered
Mobilization Of a huge staff Of at.
torneys, expert accountants and
utility engineers by the defendant
companies and individuals has made
1t difficult for the public and city
to procure adequate legal, engineer.
ing and accounting assistance in
order to provide quickly and ade.
quately for any trial before a pub.
lie service commission" Rucker al
leges.
Dummy Company
Defendants formed the Indianapo
lis Power and Light Corporation, as
dummy, to purchase 71.43 per cent
of the voting stock Of the Indianapo-
lis Light and Heat Company, accord.
ing to the petition. The Middle West
Utilities Company, a similar organi-
cation, acquired control of 28.5 per
cent Of the Light and Heat Com.
pany stock, while its competing com
pany, the Merchants Heat and Light
Company, is owned 100 per cent by
the Central Indiana Power Com
pany, an Insull-owned corporation, it
was pointed out.
Fuckers brief emphasizes the eff.
fort Of the utility corporations to
operate outside the Jurisdiction Of
Indiana authorities.
'They never have submitted to the
| jurisdiction of the commission or to
the Indiana laws relating to them,
and thereby the commission has been
deprived Of authority to inquire into
the management and the business
OF these foreign public utilities and
has ben unable to keep itself in.
formed as to the manner and method
in which the same is conducted and
has never had the right to obtain
from the foreign utilities any neces-
sary information to enable the COM
mission to perform its duties or to
enable the public and the plaintiff
to inform themselves in any way"
the complaint AYERS.
Prevents Check
The evasive procedure, the COM
plant points out, prevents the COM
mission from inspecting books, ac-
counts, papers, records and memo
randa nd to obtain testimony under
oath from officers, agents and EN-
ployes of the utilities.
Through creation of vast, false
and fictitious valuations" the cor.
porations have conspired to obtain
rates much higher than those now in
effect, Rucker stated.
Similar maneuvers have been, or
are in the process, in Illinois, Ken
lucky and other States, it was
pointed out.
such contract, cInbanation and
conspiracy is in restrain Of trade and
commerce among the several States
o fthe United States in violation of
the laws Of the United States and
especially what is commonly known
as the Sherman Antitrust act and
law" the complaint AYERS.
The city will seek relief either in
Federal Court or before the Federal
Trade Commission, Rucker said.
Immediate issuance of restrain
ing order against the merger was
asked because the public will suf-
fer great and irreparable loss, es-
pecially should such petition now
be heard and should not ample
time be granted for the proper
presentation of this complaint to
the court"
The emergency would demand is
suance of the order by Judge Cham
berlain without delay, according to
the corporation counsers contention.
For City Ownership
There is every probability an in
crease in rates will be necessary if
the commission approves the
merger" Boynton ]. Moore, city
council president, said today in
asserting determination, of the coun.
Gil to fight the proposed.
Moore preached municipal owner
ship as solution Of the problem
and declared that a resolution to
that effect probably would be pre-
scented at council meeting tonight.
with a city-owned plant, rates
for electricity to the city would be
as low as " to cents and for
power purposes at just about the
same figure" Moore said. with
cheap power Indianapolis would be-
gin to attract Industries and realize