The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-01-31
STATE RULE OF
UTILITY HOLDING
UNITS OPPOSED
Bankers Unanimous in
Stand Against Moorhead
Senate Bill.

"Let us enjoy all the benefits OF
monopoly under governmental regu-
lation but retain the secrecy Of q
competitive business so far as our
financing through holding companies
is concerned"
This was the plea Of veteran util-
ity lawyers before judiciary A COM
mittee of the senate at a hearing
on the Moorhead bill Friday after
noon.
The bill would give The public
service commission jurisdiction over
utility holding companies.
Presidents of all the indianapolis
banks signed a round robin against
the bills passage and supported the
utility viewpoint.
AS drawn, the bill does present
constitutional difficulties, it was adj
mitted by Harold G. Batchelder, In
dianapolis attorney, appearing in its
behalf.
Batchelder wrote the second Sec
ton, which would place the burden
of producing evidence in rate cases
involving holding companies on the
shoulders of the petitioning utility.
Legality of Scope Doubted
The first section, drafted by the
late Samuel r. Artmaf, one time
public service commissioner, would
make holding companies operating
utilities and Batchelder doubted
whether commission control could
be extended beyond the borders OF
the state Most of the large hold
ing companies have headquarters
in New York, Chicago or elsewhere.
Perhaps Wall Street and the
brokers have abused the holding
company plan by making it a Sc
curity selling proposition" John T.
Beasley of Terre Haute, president
of the Indiana Gas Utilities Com
pany admitted. But this bill Will
accomplish the opposite of what is
sought. 1t would throw the entire
matter into federal court, becloud
the, financing and the people will
suffer"
Beasley commended that the Dress
er plant and other large producing
units would not have been built in
Indiana without the holding COM
pany set-up.
Finally he placed the burden Of
high rates on the public service
commissioners.
THE public service commission
under the present statutes can get
all the evidence it desires in. re-
gard to rate making" The declared.
ut is the business of the public
service commission to lower rates
if they are too high"
Data Difficult to Get
How the public service commits
sioners are handicapped in getting
all the evidence" because of lack Of
holding company legislation was de-
scribed by Batchelder.
"For instance if the commission
learned that the Indiana Bell Tele-
phone Company was paying its
holding company, American Tele-
phone and Telegraph Company, Az
per cent on gross receipts for en-
cheering services, the commission,
under the present law, could not
learn what these engineering service
costs we're because A. T. and r.
would be beyond their jurisdiction,
Batchelder explained.
william P. Evans, Indianapolis at
torney, appearing for insult against
the measure, declared that the bill
is "unwarranted and will produce no
good result"
All members of judiciary A COM
mittee are lawyers. j. Clyde Hoff-
man Rep., Marion) is chairman.
Following the hearing they went
into executive session, but reached
no decision. Further deliberations
will be held next week, Hoffman
said. The bill is likely to be given
divided report with minority for
passage and the majority for in
definite poStponement.