The Indianapolis times., 1934-01-03
PADDING LAID
TO LIGHT co.
BY PRODERS
Excess Valuation Said 10 Be
$15,OO0,0 900, Search
of Books Shows.
CONSUMERS VICTIMS
Public Still Is Paying for
Sky-High Figures,
Experts Claim.
BY BASIL GALLAGHER
Times stan Writer

The merger of two rival utility
companies TO form the Indian
apolis Power and Light Company
Saddled electric consumers of the
city with a $4,000. 900 excess valua-
ton, according to figures obtained
in the investigation of power com
pany affairs by the public service
commission.
Although the alleged attempted
s55,000,000 stock grab" by Harley
L. Clarke and his associates failed
at the time of the merger, Jan. 10,
1927, the indianapolis public still
is paying for the additional Sl5000,-
900 valuation granted the utility by
the public service commission, ex-
perts point out.
In this and subsequent articles
The Times will show some Of the
alleged activities of the officials of
the light company which have led
to issuance of public service COM
mission order to show cause why
electric rates in indianapolis should
not h reduced by the commission
Hearing on the order is scheduled
for Feb. /.
Instituted by MintOn
Order for the hearing to show
cause why rates in this city-amone
the highest in the country-shoulc
not be reduced was instituted by
Sherman Minton, public counselor
before the public service commits.
sion, after The Times had turneC
over to the commission the result!
of its independent investigation O.
the light company
If the $15,0O0000 additional val
uatiOn had not been granted, con.
sumers probably would have re.
ceived a much larger reduction OF
rates at the time of the merger
according to StatehOuSe observers.
Before going into details of al.
legged manipulations designed, ac-
cording to experts, to hoodwink the
public following formation of the
Indianapolis Power and Light Com
pany, it is necessary to outline
briefly the histories of the COM
panies prior to the merger.
insult in the Picture
AS told in the last inStallment
Samuel insult had come into In
diana. He now owned the Mer.
chants Heat and Light Company
and 282 per cent of the Indian.
apolis Light and Heat Company.
Then brisk young man with 6
pleasing personality stepped intC
the utility picture in Indiana. ri:
name was Harley L. Clarke, Chi.
cago. Clarke, nov president of I:1t
Utilities Power and Light Corpora
ton of Chicago. holding company
of the present indianapolis PoweI
and Light Company, was lookeC
upon then as a formidable opponen
of the insults in the battle to obtain
control of mid-western utilities.
Clarke did not come directly int
indianapolis Instead he went t
the southwestern section of the
state and bought a site at Edwards
port where the natural advantage:
for the operation of a utility plant
nearly we're perfect.
Turns Eye on City
The large tract at EdwardSpor
is reported to have had three
qualifications of coal with the
White river flowing through the
property He called the develop.
ment the Indiana Power Company
Soon insult and Clarke are re.
ported to have talked business,
the latter having his eve on In.
dianapoliS utilities. The boom day.
were upon the country, and finall!
Clarke sold out his Edwardspor
property to insult for sum report.
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