The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-01-03
"Hell Breaks Loose"

family.
"Tiell Breaks Loose"
With insult interests in control of
the Merchants Heat and Light Com
pany and foot firmly planted in
the Indianapolis Light and Heat
Company, hell broke loose
The rival electric companies keen
ly competed with each other. Con-
sumers, aware of the setup, would
buy their electricity first from the
Merchants and then, refusing to pay
bills, switch TO the Indianapolis Heat
and Light Company A rate war
ragged. Hundreds Of consumers ran
bills for a few months, and then
switched TO the rival company.
1t is reported that more than a
quarter of a million dollars in out
standing electric bills were carried
on the books of the companies.
insult and Clarke We'd with each
other to obtain control Of Indian
apolis utilities.
Firm Needs Subsidiary
When Clarke bad succeeded in
buying a controlling interest in the
indianapolis Light and Heat Com
pany there was nothing for insult
to do but sell out to his rival
Clarke then sold the common
stock Of the Indianapolis Heat and
Light Company to himself and
made the local company a sub
Sidiary of the Utilities Power and
Light Corporation of Chicago, of
which he is the president
The Utilities Power and Light
Corporation has thirty other utili-
ties and thirteen other subsidiaries,
not utilities, in various states.
In October, 1926, a proposed
$55 900 600 consolidation of the cleo
trio utility companies of the city
engaged the attention of the public.
Civic Bodies Rise Up
The petitioners for a consolida-
ton, led by Clarke, sought authority
of the public service commission for
the Indianapolis Power and Light
Company to issue securities of
total par value of S55.810,000 to &C
quire the property of the Merchants
Heat and Light Company and the
indianapolis Light and Heat Com
pany and assume their debts.
Civic and business organizations
in Indianapolis fought the proposal
They charged the promoters had
attempted to rush through their
proposition in fragrant violation OF
the statutes governing such transact
lions and contrary to the accepted
rules of the public service commits
sion. The groups also charged the
promoters carried on a definite cam
paign to impose an alleged gigantic
valuation grab on the consumers
before the consumers could take
adequate measures to protect them
selves.
Newspapers of 1926 blazed with
banner headlines telling of attacks
and counter-attackS on the merger
Public Opinion Aroused
The petition filed with the public
service commission by the promoters
of the merger asked authority of the
commission for the indianapolis
Power and Light Company to &C
quire the used and useful property
and business Of the Indianapolis
Light and Heat Company, the value
of which was set at S30,168,0O0, and
of the Merchants Heat and Light
Company the value of which was
set at $8,571 0G0, against which
5000 900 bonds we're outstanding.
The petitioners asked for 81 .000.0 900
working capital. The total of the
working capital, value of the prop
erty sought to be bought and the
debts of the two operating companies
were placed at $50, 100000 in the
petition
This amount. the petition alleged,
was to be realized by the sale of
the S55,8l0.000 of securities, after
making deductions for discounts in
the sale of bonds and preferred
stock.
Public opinion in indianapolis was
aroused. Opponents of the merger
deal sought in every possible way to
block the consolidation.
Next-Secret sessions are held
The famous guessing committee"
operates.