The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-05-16
STATE RECEIVES
NO CASH FROM
ARMORY RENTS
Holding Company Gets Its
Share, but Taxpayers
Hold the Bag

Despite boxing shows and other
entertainments staged at the Indi-
annapolis Armory since twas opened
Nov. /, 1926, not cent Of the s49,-
1886 collected in rentals up to
Sept. 80, 1880, ever has accrued to
the state.
In addition, the state has paid the
rental to the Armory holding COM
any by Appropriation.
This plan of making the overhead
macth the income prevails in
twenty other armories built under
the holding company plan, a report
from the state board of accounts
presented to the Governor disclosed
today.
The report covers armory man
agement. 1t was presented with the
report on construction, ordered by
an emergency statute in 1929 and
for which Governor Harry G. Les
lie spent $4,000 and then ever pre-
sented to the 1881 session.
State Doesn't Get Balance
Both the construction and man
agement reports are complete in de-
tail and fill volumes. They were
compiled by Ure Frazer and Ira
Holland, field examiners for the
state board of accounts. They were
turned over to the Governor by
Lawrence F. Orr, chief examiner.
The management report discloses
that in armories at Anderson,
Bloomington, Delphi, Ft. Wayne,
Frankfort, Franklin, Greensburg,
indianapolis, Lafayette, Madison,
Muncie, Noblesville, Princeton,
Rensselaer,, Salem, Shelbyville,
South Bend, Upton, Warsaw and
Whiting, $133, 447,20 was the total
receipts from time of construction
to Sept. 30, 1880, and disbursements
1924, 896.10. Even the $8,551.10 bal
ance was not returned to the state,
which paid the rentals by tax levy.
At the indianapolis armory, $49,-
868.66 was collected and $49, 181.59
disbursed, leaving a $68707 balance.
Bill Is D1SapprOVeu
A bill to put all armory receipts
into the general fund failed Of pass
age at the last legislative session.
The $1,000 report was not available
with statistics to muster it support.
But the legislators did appropri-
ate sufficient funds to pay the hold
ing company rentals, as usual.
Frazer declared that the adju-
tant-general has the power to re-
turn the receipts to the general
fund under the present law.
are the fifteen leading hitters in the
Construction report shows that
nineteen armories will cost the
state $2,547,627. These were all
built under the Felix McWhirter
plan, whereby the Peoples State
bank did the financing and the Os-
from Realty and Construction Com
pany, a subsidiary Of the bank, the
building.
This was under the regime of
former Governor Ed Jackson and
then Adjutant- General Klilam G..
KerShner.
Building is Halted
A halt t othe building program
was made by the 1929 legislature,
which ordered no more holding
company buildings be erected and
the entire matter investigated.
Report shows that the construc-
ton company received a total net
profit of $107, 1853 and the bank
$95,35O in brokerage fees, of which
$1,125.99 was placed to the credit
Of the bond redemption fund.
Total armory bond issues were
$1,782,000, for which the state will
pay $,547,62786, the difference of
$765, 627.86 being for interest pay
mentS, retiring bonds, and similar
expenses, to be met before the
state actually own the buildings.
In most instances, the sites were
donated by the cities or citizens
Ostrom Realty and Construction
Company made 10 per cent profit
on the Indianapolis armory and
8 per cent on most others, the re-
port shows.
All were built on the cost-plus
basis, without competition.
Contractor Loses Eye