The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-01-25


trade commission had issue
Laclede company on the regi.
funding bond issue of $4,000,
Action against the Laclede
company by the federal trade
commission is said to have
been the first time the re-
Gently enacted securities act
has been invoked by the gov
eminent.
The company. it was learned. will
attempt to have the issue under
written abroad where no securities
act exists.
The Laclede company, it was
learned. is one of a country wide
network of utilities, including the
local light company. which are con-
trolled by Harley l.. Clark.
According to Washington dis
patches. the Laclede company on
Aug. %. filed its $4,000 registra-
ton of bonds with the federal trade
commission.
In answer to the question by the
federal authorities. is any litigation
rending which might affect tho
value of the securities?" the Laclede
company is alleged to have answered
none"
Rate Cases Found Pending
Subsequent investigation. accord
ing to advices from Washington. re-
vealed that important rate cases
then were pending against the COM
pany in the Missouri supreme court
and in the Missouri public service
commission.
The governmet. it was learned, de-
manded amendments to the regis
tration of the 100000 bond issue
and the Laclede company. instead OF
making the amendments. asked to
withdraw its registration statement
which automatically took the bond
issue off the market.
Utility experts today pointed out
that this action also fOrestalls any
public hearing on the matter which
might involve bringing the records
of the company before the federal
trade commission.
Subsequent to the placing of the
stop order on the 50 900. 900 bond IS
sue. the Utilities Power and Light
Corporation tthe holding company
Of both the indianapolis Power and
Light Company and the Laclede
Gas Light Company was reported
to be planning to finance abroad.
Advertisement Appears
The following financial page adj
vertisement was published recently
Utilities Power and Light Cor
pOration Company is reported plan
ming to float a bond issue abroad tc
raise funds to pay off sl0000,000 OF
refunding and extension per cent
bonds Of Laclede Gas Light Com
pany. subsidiary. due April l. 1884
Appearing in the offices of the
public service commission. attorneys
for the local light company yester-
day demanded dismissal of the In
diana public service and commits
sions order to show cause why rates
in indianapolis should not be re-
duced.
Thompson. Rabb & Stevenson
and Fred Bates johnson. attorneys
for the power company. in asking
dismissal of the order, charged that
the commission was acting CON
trary to law and in violation of the
fourteenth amendment of the con-
stitution of the United States"
Old Method Called Failure
The fourteenth amendment. it
was set out. forbids confiscation of
property without due process of law
According to Mr.. Minton. it is the
provision under which practically
all local utility rate cases have been
taken into federal court.
Mr. Niinton took time out to re-
iterate his contention that the order
TO show cause method is the only
feasible manner of forcing the light
company to a Showdown" on its
alleged exorbitant rates.
If We go back to the old method
of appraising properties for fair
value" with terrific fees for lawyers
and engineers paid out of the tax
payers pockets. regulation fails" he
said. Why shouldn't I order the
light company TO come in and show
us how they are conducting their
buSinesS2"
AS I have said before, the order
10 show cause method is a short cut
which has been devised to cut out
all this unnecessary expense to the
taxpayers Of this state. Let the
light company enter into this hear
ing in the right spirit and show the
consumers of Indianapolis that there
Is justification for these rates. If
they have nothing TO conceal. why
should they hesitate to come for
ward"
Mr.. Minton revealed that the local
light company's action in demand
ing dismissal vas the sar,s as the
procedure recently fol- Il by the
Public Service Company OF Indiana.