The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-09-23
Water and Electric Tolls
Here 'LegaIized Larceny
Editor Tells Club.

''The real tax on industry and
business in indianapolis is not
levied by city, county or state, but
is assessed by the lega1ized larcenies
of Our public utilities" declared
Boyd Gurley, editor of The Indian
apolis Times, today at the Kiwanis
Club luncheon.
Rates charged by electric light
and water companies bear no rela-
ton whatever to the reproduction
value of their plants nor to the &C
tual investment in them," Gurley
pointed out.
"They are based only upon fic-
titious values ballooned upward by
inflated war prices for labor and
material.
War Basis Continues
TN order to capitalize the war
which was fought by human beings
the utilities established the prin-
cipal that they were entitled to col
lect upon the cost of reproducing
their plants. They then proceeded
to calculate the reproduction costs
at wartime prices.
They figured labor at So to $40
day, and the price of steel, cop
per and iron at their peak figure.
Today with labor and materials in
the depths the utility operators
continue to collect on the wartime
prices.
Gurley cited figures to prove his
contention that the light and water
rates in indianapolis were extor-
tionate and in no way connected
with the actual cost Of delivering
the product.
Owners Get Vast Returns
"Out of every dollar spent by
the citizens of indianapolis for
water last year, 43 $40 cents went
as dividends to Clarence Geist and
his relatives, who own the COM
pany," the editor declared.
This was paid to them after they
first had been paid the interest on
bonds and preferred stocks, whose
total easily can account for the en-
tire cost of building the water sys-
tenn here.
ut is doubtful whether the S.
100000 of common stock represents
any investment of real money in
the mains, materials and labor.
In 1880 the people paid total of
81, $4,000 for water Out of this
Geist took as dividends on his COM
mon stock $1,225,0 900.
II submit that these dividends are
extortionate and immoral
AssaiIs Electric Rates
Gurley then discussed the opera
tons and the charges of the Indian
apolis Power and Light Company.
Under the ownership of Harley
Clark, the amount paid by Indian
apoliS citizens and manufacturing
companies for electricity has
climbed steadily" he said. 1T in
creased 100000 between 1928 and
1880.
1.-THE investment of Clark is pre-
sumed to be $1,O60,00O upon which
last year he collected as dividends
$40, 900 and this is approximately
one-half of his holdings. AS mat
ter of fact, through the exactions
and extortions of his holding COM
pany it took approximately $2.000,-
600 out of indianapolis, Gurley de-
clared.
There is a rake-of of approx
mately so cents ton on coal paid
to the holding company by the In
dianapolis subsidiary.
Coal Increase Unwarranted
"The company's report to the
public service commission shows
that for 1880 the price of coal paid
by the light company at the mine
was cents higher than in 1929.
This increase came at a time
when the state was hiring statesmen
to create market for Indiana coal
of this type, known to the trade as
screenings, for from 80 to 90 cents
a ton.
In the four years under the OPP
Grafton of the merger this holding
company has levied tax upon In
dianapoliS of at least $7,000,00
Public utilities have real tax
ing power, they collect tribute upon
the necessities of life. A readjust-
ment of rates at this time is not
only just, but imperative" Gurley
declared.
immigration Head Resigns