The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1927-01-08
$40, OOO,OO Light Merger Approved
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Hearing Held or Proposal OF
Chamber of Commerce
Committee.
nWyU UNnUAY
BULLETIN
The commission authorized the
merger on the compromise terms
this afternoon.

DO
The commission authorized the
merger on the compromise terms
this afternoon.
The public service commission to-
day took under consideration the
Chamber of Commerce proposal that
the merger of the Indianapolis Light
and Heat Company and Merchants
Heat and Light Company be per-
mitted on compromise terms.
After a hearing on the Chamber
petition setting forth the compro'
mise terms as agreed to by Harley
l.. CLARKE, merger promoter, the
commission went into private con
ference.
A decision was expected at once.
The commission will authorize the
merger, it was believed.
Representative Of the city and
the Indianapolis Federation of Civic
Clubs opposed ANTICIPATION OF the
merger at the hearing.
The compromise agreement pro-
vides, That the two light utilities
be unified on a capitalization basis
of S40,000,000 That large power
users be given a reduction of 8
per cent, thereby placing them on
the 10 per cent discount basis now
given light consumers.
That a $315,000 reduction in
light rates be distributed among
light consumers other than the
big power users, and that the
Clarke interests deposit the sum
of 100000, or acceptable securi-
ties of that value, to be forfeited
in case of a demand for an in
crease i'm rates within five years.
The money, in such event, would
go to the Chamber to be used to
fight the rate increase.
Attorney Frederick E. Matson,
representing the Chamber, presented
the Chambers proposal.
"The Chamber of Commerce has
worked faithfully in an effort to
bring about a condition that would
be of benefit to the city," said Mat
son. This has been a long, labori-
Gus effort.
THE Chamber was never opposed
to the merging of these properties,
but it did oppose the high capitali-
zation proposed.
1.-THE valuation evidence submitted
at the previous hearing was care
fully analyzed by the Chambers en-
gineer and accountant and submitted
to this committee.
Albert J. Hickey, expert retained
to make the Chambers appraisal,
reported that If he completed the
appraisal his final valuation would
not vary more than 5 per cent from
40,000,000, Matson said.
"This action of the Chamber does
not in any way prohibit the city
from making application for lower
rates and demanding an appraisal, "
he said.
Charges Violated
THE Chamber of Commerce
violated it's 5reement with the 9th
er protestants in this case" de-
clared Charles Mendenhall in his op
position to the agreement, when
they enter I'M negotiations inde-
pendent of the others"
]. w. Fesler, utility attorney,
called Mendenhalls attention TO the
s tement of the mayor approving
the action of the chamber.
1--WE don't care what the mayor
said" interposed Corporation Coun
selor Alvah J. Rucker rom his seat.
William Bosson joined with Men.
denhall in his opposition to the
agreement submitted. Bosom ac-
cused Commissioner Frank Wampler
of already having the decision of the
commission prepared. This Wamp-
Ter denied, adding that he had the
general form ready to insert the de-
cision of the commission after to-
days 81 sion.
Fireworks were narrowly averted
when Fesler pronounced one of Bos-
sons statements as false and Rosson
came back equally as strong.
1.-THE people we represent are tn :
small consumers of this city," caie
John F. White, appearing in behalf
of the Indianapolis Federation Of
Civic Clubs, "and should be given a
voice in this hearing.
I'VE do not oppose a merger, but
we want it on the proper basis. 1t
seems that this agreement is like a
horse-trade. You don't know until
too late who gets the best Of the
deal.
I'VE. want a merger on fair basis
and don't know whether this is fair
or not"
When the question came from
the commissioners as who was
financing the appraisal of the prop.
critics, it was brought out by Attor.
ney Matson that the Chamber OF
Commerce was defraying all expense
without any assurance of outside
support, and that this was the only
appraisal that had been planned to
submit to the commission of Jan. 81
the date set for the hearing.
Boyce Objects
City Clerk William A. Boyce, de
claring he represented Council Presi
dent Claude Negley, asked for a de
lay, saying council expects to ap
'proprlate $1,000 for an appraisal OF
the utility properties.
The merger capitalization should
no be set by guesswork andAa com
plete appraisal is needed, he said
He declared the city expected to aid
If the Chamber went ahead with
the appraisal, since there has beer
a new lineup in council and the ole
majority faction, which opposed the
merger fight, has been placed in the
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