The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-01-04

why electric rates in Indianapolis
should not be reduced. Hearing on
the order has been set for Feb. l.
On that Jan. 10, 1927, when news
papers in this city screamed in large
black type that a $4,000, 900 stock
grab" was being foisted on con-
sumers, public opinion was aroused
to high pitch.
Then the Chamber of Commerce,
ostensibly in the role Of guardian
angel" to the public, appointed is
famous guessing committee COM
posed of Emerson w. Chaille, chair
man; Henry L. Dithmer, Roy E.
Adams, H. c. Atkins, Niles Chap
man, L.. L. Goodman, A. Kiefer May
er. F. c. Reilly and Carl A. Taylor.
Compromise" Is Reached
Acting as an intervenor in the
merger proceedings, the Chamber of
Commerce committee COMPROMISED"
with the interests promoting the
merger of the electric utilities.
Public feeling ran high. Typical
of the sentiment was newspaper
cartoon by Charles Kuhn, depicting
large benied capitalists, labelled
Utility Merger Interests" standing
in the Chamber of Commerce rest
room" smoking cigars from box
lebelled Harley Clarke Specials"
while a be-spectacled youth, tagged
Chamber of Commerce Guessing
Committee looked hungrily at the
box of sleek cigars.
On the guess" submitted to the
public service commission by the
Chamber of Commerce guessing
committee" the promoters of the
merger were authorized to issue and
sell securities totalling $43,060, 900.
They were authorized to issue and
sell 100000. 900 of bonds and $12,-
100000 of preferred stock, and $780,
600 shares of no par value stock for
$1,000 900, as payment for equity"
making an aggregate of SAB 060,000
of securities which the promoters
were authorized to sell on property
for which a value of 100000 was
fixed.
Guessed Is Charge
Opponents of the merger scheme
charged at the time that the Cham
Der of Commerce committee COM
promised with the promoters at a
guess" valuation of the property.
The record shows that on Dec. %,
1926, Albert s. Richey, Worcester,
Mass, the expert engineer employed
by the Chamber of Commerce, told
the public service commission that
he would require a minimum of
ninety days to make an investiga-
ton to determine the value of
properties of the Indianapolis Light
and Heat Company and the Mar-
chants Heat and Light Company.
Stone & Webster, conceded to be
the largest engineering concern in
the country who were employed by
the promoters of the merger, de-
voted more than three months to
making their computations. accord
ing to reliable information to the
public service commission.
Yet the guessing committee" of
the Chamber of Commerce started
negotiations to compromise with the
promoters on the basis of an agreed
valuation after their engineer,
Richey, had been at work less than
a week. The Chamber of Commerce
auditor, according to the public
service commission investigators,
had not even started his work.
Petitions Are Studied
In the possession of The Times
are extracts of the petitions the
Chamber of Commerce filed with
the public service commission on
Dec 20, 1926. asking that Richey be
given access to the utility company's
records and books for the purpose
Of an appraisal.
Yet. less than a week after Dec.
29-the day of the request-with
Sundays and holidays intervening,
the Chamber of Commerce commit
tee had compromised on the merger.
In a statement issued by the
Chamber of Commerce to the press
on Jan. IS. 1927, three days after
the merger, the chambers board Of
directors laid of the committee pro
tecting the interests of the public
in the proposed merger:
The board of directors unan-
imously approves all actions taken
by the committee The board be-
lieyes the public interest has been
protected fully and strongly feels
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