The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-01-22


of the light company, it is
charged, are based on a
"guess" valuation.
Today Mr.. Minton charged that
rates based on such a valuation are
unfair to electric consumers of this
city. He also charged that such
valuation is unfair to security buy
ers.
Mr.. Minton stated that the only
conceivable object of the alleged
"writeup" of $4,000. 900 was an OBJ
vious move on the part of the light
company to resist any demands for
rate reductions.
It was charged that by the al
legged -writeup," the light company
was setting up a false value for its
common stock held in entirety by
the Utilities Power and Light Com
pany Of Chicago (the holding
corpOration).
Real Estate Is Figured
Real estate and going vaIsfesa OF
the light company. according TO re-
ports of the utility to the public
service commission are the items
which enter largely into the alleged
"writeups."
Previous to the publication Of a
series of more than twenty exclusive
stories dealing with alleged condi-
lions of the indianapolis Power and
Light Company, The Times spent
nearly eight months in an examina-
ton Of the reports of the light COM
pany to the public service commits
sion. which are part of the public
records. made under oath, on the
operation of the utility.
The results of the investigation
were studied carefully by Mr.. Min
ton and a corps of assistants, and
the petition to the public service
commission by Mr. Minton for an
order to show cause why electric
rates in indianapolis should not be
reduced followed a painStaking
perusal of the evidence gathered by
The Times and all subsequent in
vestigation by Mr.. Minton.
Hearing Set for Feb.
In an exclusive story in the
Capital edition of The Times, Dec.
%. the story of the issuance OF an
order to show cause why rates IN
this city should not be reduced, first
was told.
The public service commission
Judged Mr.. Mintons petition Suffi-
Gent evidence TO warrant a hear
ing Feb. / in which the light COM
pany has been ordered to appear
and give evidence OF why alleged
eXorbitant rates in this city should
not be lowered.
In its series of exclusive articles
based on statements from Mr.. Min
ton and reports of the light COM
pany to the public service commits
sion. The Times has revealed
among other things the alleged high
rate of depreciation charge made
by the light company in its public
reports.
This newspaper pointed out that
the more depreciation reserve a
utility can claim, the less chance
does the public stand of obtaining
lower rates.
Missing Papers Found
Alleged missing papers relating to
the merger of two local companies
to form the present Indianapolis
Power and Light Company were
taken up next. Although some of
these documents since have been
found. according to the public
service commission. they were not
available when Times investigators
requested them on several occa-
sionS.
Outlining briefly the history of
the merger and the events leading
I'D to il. The Times told of the al
legged Sl5,000,000 excess valuation Of
the property Of the light company,
which. according TO utility experts,
has been Saddled on the consumer.
The sorry condition Of the city
during the competitive days Of the
rival electric companies before the
merger and the entrance Of the
"Athenian." Samuel insult. into the
utility picture in Indiana were
traced.
Guess" Valuation Alleged
Harley L. ClarkeS career in In
nianapons and his victory over
insult in the race 10 gain owner
ship Of electric utility interests in
this city were told.
The failure Of the alleged s55,-
100000 stock grab" preceding the
merger and the entrance of the So
called guessing committee" OF the
Chamber OF Commerce, which is
alleged to have placed a guess
valuation on the property of the
company. were taken up. This
alleged guess valuation since has