The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-01-19
WFBM BOOKS
ARE BATTLING,
SAY PROBERS
Light Co. CIOakS Accounts
of Its Radio Station,
Accountants Claim.
RECORDS SHOW LITTLE
'CIean-Cut' Statement of
Revenues Is Sought by
BOokkeeperS.

Radio station WFBM, operated in
this city by the Indianapolis Power
and Light Company, is a nOnOperat-
ing revenue source. the expenses OF
which, in the light company's re-
ports to the public service commits
sion. are pulling TO accountants.
An analysis Of the light company's
reports TO Sherman MintOn, public
counselor. in preparation for the
rate case to begin Feb. !, reveals
that the figures quoted for the OPP
Grafton of the radio station list
gross revenues" or revenues" rep
resenting gross receipts and sale of
services for the broadcasting sta
ton, according TO accountants.
No deductions are made for OPP
Grating expenses. depreciation OF
equipment, maintenance of station's
equipment. cost of artists services,
etc, in the reports to the commits
sion Of the operation of the radio
station, accountants charge.
While they admit that these ex-
penses for the radio station prob
ably are reported in some other ex-
pense account, a careful study of
the official reports has not revealed
them to date, accountants declare.
They maintain that the light COM
pany should make a "clean-cut"
declaration of these expenses for
the operation of the radio station,
which easily could be found by any
accountant and not merely by the
accounting department of the light
company.
Fail TO See Benefit
Accountants allege that if the
station were profitable, the light
company would be only too glad to
show that it was a mOney-maker.
AS in the case of certain other
incorporating revenue sources of the
light company, which are alleged to
be a heavy drain on consumers
pocketbooks. utility experts fail to
see what benefit the operation OF
the radio station is to electric con-
sumerS, under the present high
rates.
Under the caption, miscellaneous
incorporating revenues" in the re-
ports of the light company to the
public service commission, account
ants declare that the following fig
ures regarding the operation of the
radio station are the only statistics
Mr.. Minton can find:
1927 None reported
1928 (aS gross revenuel ......... SCI ,656.S3
1929 trevenuel ---.- ----.----.--- ; -, 6tis-9i
1891 gross revenue) ..---.--.-. So. 80
1892 met profit -.-.-----...... SIS. o6S.l Ii.
Accountants studying these re-
ports of the light company stated to
Mr.. Minton that the management of
the company should be asked TO give
the public an operating account for
1927 to 1892. inclusive. and state to
what account or accounts the eX-
penses connected with WFBM have
been charged each year.
Items Are Recalled
Recalling the alleged questionable
items relating not only to the non
operating revenues of the light COM
pany and their benefits to the ulti-
mate consumer. but also the alleged
~write-upes totaling S240O0,000 as
charged By Mr.. Minton. the public
counselor today cited the following
statement by the light company
which appears on the last page of
its reports to the public service COM
mission.
We the undersigned (the presi-
dent and officer in charge of &C
counts on our oath do Severally say
that the foregoing return has been
prepared under our direction. from
the original books. papers and rec
ords Of said company; that We have
carefully examined the same, and
declare the same to be a complete
and correct statement of the buSi-
ness and affairs of said company in
respect TO each and every matter
and thing therein set forth.
And We further say that no de-
auctions were made before stating
the operating revenues therein set
forth. except those shown in the
foregoing accounts and that the &C
counts and figures contained in the
foregoing return embrace all of the
financial operations of said company
during the period for which said
return IS made. TO the best of our
knowledge. information and belief. q"