The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1930-12-30


handle acquisition Of the Citizens
Gas Company by the city, to enable
operation Of the street car, sys-
I tenn under the district.
White stressed the situation as
one Of major consequence in the
development Of the city and COM
mon welfare of the people
Critcises MonopoIies
He pleaded with the committee to
I've the matter earnest considera-
c.bn that will result in harmony and
establishment of a modern and eff
hcient transportation system.
White criticised nnonopolies, espe-
cially when city streets are con-
cerned, and also warned against
competitive rivalry when public
property is involved.
Granting a monopoly to pri-
vate corporation compels coun-
teracting endeavor. to set up regula-
tons of control to safeguard the
public interest" White stated.
THE proposed franchise of the
insult interests is a most striking IL
Illustration of the uncertain, the long
drawn-out legal rigamarole, and the
complicated character of these mo-
ncpolistic contracts with private in
terests, which seek, above every
thing else, the security of invest
ment and, therefore, so involved in
detail as to leave the public rights
in a haze of doubt. with potential
jokers hidden away in its compli-
Gated structure, only to be developed
in critical periods of adjustment.
Discusses Valuation
In discussing the valuation Of the
utility property, White stated there
have been regrettable losses in OPP
Grafton of the company and that
some of the materials and equip
ment are but scrap.
He said all returns and value
should be based on the services as a
transportation company land the
public is not to be filched out OF the
rewards of its sovereign rights or
penalized in the interest of private
investors"
He said a private monopoly under
"our form of American government
is intOlerable and indefensible, and
a public monopoly owned by private
interests is coming to be almost
equally intolerable and indefensi
BILE
He pointed out that private util-
tiles never liquidate certain amounts
of their bonded Indebtedness and
while profits of a municipal organ
izations could be applied to the
debt which would wipe it out in less
than thirty years without added
taxation.
Calls Plan Best
O., under public ownership
there is no ownership stock on
which dividends must be paid; ex-
tension and improvements made out
of SURPRISES derived from earnings
are not pyramided into new and
additional capitalization to be util-
lied for rate making purposes, and
bonded Indebtedness can be liqui-
dated out of net profits that would
otherwise go to pay dividends in
privately owned utilities, White de-
clared.
This policy has a three-fold eff
feet. First, net profit would be
,l@sd to retire interest bearing
sedurities, thus reducing interest &C
counts SURPRISES will pay for ex-
tensions and new Improvements
with adding to capital account and
there will be an absolutely known
alhd fixed base on which to set up a
service at-cost system
He said insult proponents had de-
). CARED that if better plan were
und it should be substituted for
proposed franchise.
Public Ownership Natural
White declared that municipal
Enership is not only a better,
npler. more attractive and Sounder
ononic plan, but offers a vastly
litter opportunity for equitable adj
stmentS in public relationships
ian is possible with private owner
hip, besides carrying the assurance
H dealing justly with the present
ecurity holders
White said public ownership was
natural and complete" and the city
ould take over the property at an
zeal time.
He suggested a financing plan
with the floating of a bond issue of
bout $6,000,000 as cash payment
o the owners. He said bonds or
certificates of Indebtedness could be
sSued against the physical property
for the rehabilitation which could
be accomplished in less than three
years.
Schmidt Gives Views
Gustav Schmidt, civic leader, told
the committee that Whites report
did not represent the opinion of
members OF each of the twenty-five
federated clubs, and attacked the
attitude of persons against not per-
hitting large corporations to estab-
4 lish in Indianapolis.
He said he believed the federation
plan should be submitted in to each
OF the CluOS lOA AaNAAN1eAOAA- wy
kinney said he would be accepted as
a proposal regardless Of controversy
that exists between civic clubs.
B. NJ. RalSton. realtor. raped the
insult proposal in an address that
brought sharp replies from his
nephew, Julian Ralston.
Chase. in an address at the Serv-
dc r-l,,h at Noon Monday. EXPRESSED
disappointment because, he said, no
constructive criticism had been
given relative to the proposed street
car outlay.
GOODRICH IN HOSPITAL
millionaire Tire Manufacturer
Takes Rest; 10 Leave Soon.