New Britain herald., 1930-03-05

That's good grounds for
 damage suit" asserted Cherin. | The s3.000 suit is on file in su- l perior court here today.
 necticut River Power company. It started a fight ill both the courts and the legislature against the Con- necticut River Power company. Soon it was victorious. The Connecticut River Power company was forced to sell out all its property and it's rights. The Northern Connecticut Light and Power company, however, kept on it's books the capital investment en- try which the Connecticut River Power company had been carrying of over million dollars. In 1914 a paper mill, known as Paper Mill No. ?, which belonged to the North ern Connecticut Light and Power company. burned down. The loss was fully covered by insurance to the amount of sS0.000. That insurance was collected. There is no evidence that the insurance money was put back into the business. At about the same time personal debt of one of the owners of the Northern Conncc- ticut Light and Power company was paid by that company. And to ac- count for the two sums of the insur- ance, sS0,00O. and the personal debt which was paid sl00,o00, another entry was made on the books of the company. These two items were put down as Real Estate slSo.000 and carried as part of the capital in vested by the utility.
 Then came a series of mergers | and interpretations in which the promoters bought and sold the yar.- ous companies from themselves and to themselves. Each time there was a sale the book figures of the capi- tai invested went up. Each time the promoters made a handsome profit. But each tin1e no actual capital was really invested. Then in 1926. on or about March Sl. the Northern Connecticut Power Coa- pany arbitrarily puts upon it's books an item fixed capital-unclassif to the sum of S714,4o5.34 There was not a single bit of property Of any character to represent that su i. This made total of over two m,l- lion dollars of fictitious capital which was being carried on tic books of the Northern Connecticrt 1 Power company And on this ficti- tous capital rates were based ard charged to consumers of light and power. Then the Northern Connec- ticut Power company applied for q l federal license to build a dam an erect a power plant at Winds,r Locks. This license was granted.
 Fictitious Capital Reported
 "And on February l, 1928, h. company applied for a two year eA, tension of this license. It Is a rui, Of the federal power commissio that no extension of licenses vi be granted without an investigati ': into the nature of the capital assets which the company applying fo. , d federal investigator was appointe to examine the books of the North. ern Connecticut Power company He was joined by an auditor of ttlt Connecticut public utilities commits. sion, named Field. (Mr. Field has since diedD. These reported, after q searching investigation, that the Northern Connecticut Power con- pany was carrying over two millio,1 dollars of fictitious capital upon its books and that these capital chargrh should not be allowed. The repn,t CT commission and to the public utilities commission of ConnecticJi in August of 1928. Mir. Higgins h1e had that report in his possession and in his files for a year and ( half. Yet he has allowed, and is still allowing, the Northern Connec' ticut Power company to charge an collect rates based on that two ml lion dollars of fictitious capital And short time ago the Northe": Connecticut Power company wa: taken over by the Rorabach inter csts.
 This ought to make it perfectly clear why AIr Roraback consider! MT. Higgins to be one of those poi tical opponents whom he has plac eu in office because they haNt demonstrated that they are th. best men for the positions and theil services arc indispensable to thr state.'
 Indispensable to Roraback
 That NIT. Higgins has been indis pensable to MT. Roraback and st Governor Trumbull, who is a dire; tor of the Connecticut Light an, Power Company, is true. But th:. Mir. Higgins has been indispensable to the people of Connecticut we CT. honestly doubt.
 What are the results Of having such an Indispensable as Mir. Hig gins in office? One of the result! is the money you have to pay her, in New Britain for electric light anc power. I am definitely of the opin ion that the rates charged by tn, Connecticut Light and Power com pany in this town are illegal. The. are passing their charges upon al illegal rate structure. Let me pre- sent one aspect of this matter. Th, facts are given in the ratecard. printed and used by the Connection Light and Power company.
 New Britain Rates
 Rate 1. This rate is for domos tic service. It consists of flat rat, of 50 cents per month plus fouI