The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-01-19
ENABLING ACT
WILL Be ASKED
OF LEGISLATURE
Measure Also Would Let
Municipality Control
Phone System.
PREPARED BY DERRY
Action Ordered by Mayor,
Officials as Insults Plan
Is Denied.

AAASAAhAB tOuCilc5 JOQdy we're DE-
ing put to the amendments to the
1929 act establishing a utilities dis
trtct in Indianapolis, so as to per-
NIT the city to assume control
and management of the street car
and telephone systems.
Although assumption of control
of the telephone company is not
contemplated, it is felt by Repre-
sentative John F. White dem,
Marion), who will introduce the
amending bill, that provisions to
cover all utilities should be con-
tained in the present statute.
Passed in 1929 to enable the city to
manage the Citizens Gas Company,
the act provides not only for con-
troll of the gas company, but Of
water works, electric light, power
and heating plants.
All Utilities Included
With the insertion of provisions
covering transportation systems and
telephones, the city would have a
legal avenue at any time for con-
troll and operation Of all or several
of its utilities.
Several conferences were held the
last few weeks by Mayor Reginald
Sullivan, e. Kirk Mckinney, presi-
dent of the city works board, who
headed the city's committee to hear
presentation of the rejected insult
street car plan; Edward H. Knight,
corporation counsel; James E. Deery,
city attorney, and White.
Scope of the amendments was
discussed and it was left to Deery
to frame the amendatory measures,
which, it is thought, will be ready
for introduction Wednesday.
These amendments, it is expected
will provide the following:
Civil Service Provided
/. Removal of the utilities board
and any plants and systems 1t may
purchase or acquire from under the
control of the public service COM
mission and the state tax board.
2. Increasing the bonding limit
from the per cent set out in the
1929 act to the constitutional maxi
mum of 2 per cent.
3. Granting of power to issue in
terest bearing certificates against
not more than two-thirds the val
uation of the physical property, plus
improvements and extensions; the
bonds to be used for the purchase
of the system, betterment and eX-
tensions.
4. -perpetuation in Office for
the board of utility trustees, except
one member who shall be the may
or's appointee and upon whose ex-
piration Of term the mayor may re-
appoint or name a new member.
5. Institution of a civil service or
merit system for all municipality
owned utility employees except conf
mon laborers.
Bonding Limit Raised
These last two provisions are eX-
pected to halt any attempt at po-
litical control or domination OF
city-operated utilities and set up an
efficient and expert organization.
If amendments are passed-and 1t
is expected there will as the pro-
visions apply only to indianapolis
means would be afforded for over
lures to the stockholders OF the
street car company to purchase
their system
The increase of the bonding limit
from l to 2 per cent would enable
the city to raise the millions neces-
sary to complete the deal.
Although issued by the city, the
bends would be lien against the
property to be repaid from the earn
ings, it was explained.
Profit Anticipated
BY removing the utilities board
from the control of public service
commission and tax board, the city
might, if it so chooses, proceed
rapidly with its plans for purchase
without the delay necessary in lay
ing all of the plans and details be-
fore those bodies and waiting for
their approval.
1t is pointed out by White that:
unlike all other city responsibilities,
this sort of enterprise will produce
to pay its own costs and yield a
profit to the city, while the credit
of indianapolis will make its
securities gilt edge. 1t will not cost
the citizens a dollar in additional
taxes and in time can be made to
produce sufficient revenue to be
used in reducing general taxe5."