The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-04-10
S771,796 Spent Acquiring
City Light Go. Mystery,
Harley Clarke Explains
Ledger Sheet Covering That
Item Missing, He Tells
u. S. Probers.
BY WALKER STONE
Times staff Writer

WASHINGTON, April 10.-Harley
L. Clarke will not let a mere $771, =
79646 bother him
The Chicago utilities magnate
was asked at a federal trade COM
mission hearing today to explain
and breakdown an item of $771,-
1866 which appeared on his books
as legal fees and other expenses
incident to acquisition of the In
dianapolis Power and Light Com
pany seven years ago.
I understand that the ledger
sheet covering that item is miss
ing" said Mr.. Clarke.
Can you locate that sheet?''
as..ed Thoms j. Tingley. federal
trade commission attorney
We've tried to find it, but it's
gone said Mr. Clarke.
Can you distinguish between
what portion of that amount went
for legal fees, and what portion
went in payment of commissions? p
asked Mr.. Tingley.
Mr.. Clarke shook his head.
He Never Sees Books
cav, Mr.. Clarke never sees the
books; he can't answer a question
like that" interposed R. A. Her
minghans. accounting expert for the
Chicago utilities king, who sat at
the witness right hand for the pur-
pose of refreshing his recollection
on details.
Mr.. Tingley, however, pursued the
line of questioning, trying to elicit
more information as to how the
Utilities Power and Light Corpora
ton, Clarke's Chicago holding COM
pany, came into Indianapolis and
merged the Indianapolis Light and
Heat Company and the Merchants
Heats and Light Company to form
the indianapolis Power and Light
Company. But Mr.. Clarke continued
his protestations of ignorance as to
the details of how the purchase
price was divided.
Isn't it true that most of that
$776000 went for promotional eX-
pense?" asked Mr.. Tingley.
Again Mr.. Clarke shook his head
The Indianapolis purchase was
but one of many that Mr.. Clarke
was asked about at today's hearing
Writ Steals Show
Mr.. Tingley tried to get the wit
ness to itemize a legal fee OF
$189 500 paid March /, 1923, to the
ST. Louis law firm of Fordyce, Holli-
day and White, in connection with
the reorganization of the st. Louis
Coke and Iron Company, and fee
of $4,000 paid a few days later to
the same law firm for acquisition of
the Laclede Gas Light Company, ST.
Louis But Mr. Clarke was unable
to give the details.
isn't it true that some of this
money was paid to Fordyce, Holli-
day and White for work they did in
lobbying against the Walsh resolu-
ton in the senator" asked Tingley.
THAT is not true" said Mr..
Clarke.
The Harley Clarke sideshow in
the stuffy federal trade commission
hearing room drew as spectators
only handful of newspaper re-
porters.
Disclosures as to what was wrong
with the old deal proved to be not
as attractive as the testimony con-
corning what is wrong with the new
deal Washington throngs crowded
into the house caucus room to wit
ness the big show of the day, in
which DR.. William A. Writ was the
star performer, proving, if anything
that people are growing tired of
charges against the power trust, .
and are more entertained by charges
against the brain trust
Amused Tolerance Is Attitude
Never in the course of his exam
ination did Mr.. Clarke drop his at
titude Of amused tolerance. Mr..
Clarke is large man, with a head
as round as a billiard ball and bald
on top. He has shrewd brown eyes
that hide what he is thinking. He
looks every inch the financial ma
nipulator that he is, man who by
quiet financial maneuvers has &C
quired control over a r-hung en-
pire of utilities, stretching from the
British Isles to the plains of Okla
homa.
Touching on an item entered in
the books of his company back in
1918, when Mr.. Clarke was just
getting a good start in the utility
field. Mr. Tingley asked;
mfr. Clarke, would you call that
q detailed appraisal or horseback
appraisal"
That probably was a horseback
appraisal" smiled Mr.. Clark.