davidaulloa/AmericanStories huggingface dataset:
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-07-10
BY VINCENT LYONS
Times Financial Editor


To Charles Evan Hughes, Chief
Justice Of the United States Su-
preme Court, must go modicum of
credit for creating the tide of re-
sentiment which eliminated in the
establishment of Public ServicS
Commissions in every state of the
Union, excepting Delaware. Shortly
after the turn Of the century, when
Mr.. Hughes was a hard working
legislator in New York State, he
headed an investigating committee
which uncovered such sorry mess
of public utility abuses that strin-
gent regulation was demanded.
On the strength of the Hughes
revelations a state gas commission
was created in 1906 and was fol-
lowed the next year by the forma-
ton of a Public Service Commits
Sion-the first such regulatory
agency to be erected. Less than two
months later Wisconsin, which I'M
der the leadership of the late Rob-
ert M. La Toilette had for some
time previous been making passes
at regulation, emulated New York S
example. Within the next few
years more and more states estab-
lished regulatory bodies with In
diana joining the parade in 1913 in
company with seven other states.
Prior to the enactment of the
Interstate Commerce Act in 1887 the
system of regulation for public and
quasi public enterprises was
catch as-can method at best. Then,
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-07-10
JAPAN TO SELL
AUTOS AT 5000
Reports That Cars Will Be
Sold Here Interests
Federal Officials.
BU United Press

BIZ CHiitb IftSS
WASHINGTON, July 10.-Reports
that japanese industrialists intend
70 begin retailing automobiles for
5000 each in the. United States this
fall interested Federal officials to-
day.
They said the japanese automo-
biles might prove serious threat
to British and German cars selling
in world markets. but that they
would offer little competition 10
American motor manufacturers. The
japanese cars are manufactured by
the Nissan Jidosha Kabushiki Kaisha
at Yokohama, allied with one OF Ja-
pans leading financial concerns,
and rapidly are achieving world
wide distribution.
The car is known as the Datsun,
and is guaranteed to go so miles to
a gallon of gasoline. 1t has a top
speed of IS miles an hour and looks
something like 1917 model Amer
lean car, squeezed down to midget
size.
Reports from commercial at
taches to the Department of Com
merce show that it is being sold
now in Holland. South America,
India. Java and elsewhere, where
high taxes on horsepower make
small-sized automobiles popular.
The Datsun sells in Peru now for
around $500, but doesn't seem to
be popular there, except among Jap
anese residents. In several coun-
tries it is widely sold, strictly on the
basis of price.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-07-10
Ne7U York Stock EXCHANGE Prices
BU United Press

BIZ United Press
NEW YORK, July 10-Stocks
firmed in light trading this morn
ing. Rails made small gains while
utilities resumed their advance and
motor shares were in fair demand.
American Telephone reached
new 1885 high at 1905, up Is, but
later receded to around the previous
close. Western Union equally &C
tive, made a top for the year at
40A, up q. In the gas and electric
section, small gains were noted in
Consolidated Gas, North American,
and Public Service of New Jersey.
North American preferred made a
new high for the year at So, up IA.
Union Pacific was dull at 103A,
off y, while Atchison rose to 50A,
up is; Pennsylvania 237s, up 70,
and Southern Railway 71a, up q.
Pullman was up rs, at AIS in the
railroad equipments.
Steels were better, featured by
National which made a new high
at 52lA, up a point. Bethlehem and
u. S. Steel were fractionally higher
at 303s and 3612, respectively. Oils
were little changed. ChrySler
equaled its high for the year in the
motors. Numerous special issues
were in demand.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-07-10
Other Livestock
(Bv Times SpeciaD

LOUISVILLE. July lo-Catth-Receipts.
300; run moderate and mostly palmer
grade grassy slaughter cattle: demand i'm
proved; market more active than on Tues
day generally steday with Tuesdays
grass steers and heifers. seas; common
grassy dairybreds down to s475. with low
qualified and o: colored kinds in cutter
flesh down to 81 or less better finished
dryfed steers ouotable to around $40; bulk
grassy beef cows. S4.25G 5.25: practical top
around S5.75: low cutters and cutters gem
orally s27S@575: sausage bulls mostly
slow and about steady. Calves--Receipts,
425. including about rs stock calves; veal
ers mostly soc lower; bulk good to choice
grades. s6.50d7; only strictly choice handy
weights at so; medium and lower grades.
s. down Hogs Receipts. 800: market loc
higher: top and buk better. 160-225 ID
weights. $3.50; 23e:275 lbs: 1928: 2so
lbs. S785; sows. $3.50. Sheep-Rsceipts.
$500: run moderate. mostlv lambs general
quality. fair; demand not broad
earlier in the week. mos5 early bids soc
lower. with sellers generally holding for
steady to Csc lower prices. some inter-
ests asking up to $3.50 for better eve and
wether lambs. but most early bids from
SO; down fat ewes mostly $50 down.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-07-10
Public Enterprises Regulated in 1889

to say that the rate of return tends
to follow general economic condi-
tons. In period of easy money
per cent might be reasonable,
whereas in a dear money era the
same rate would be manifestly I'M
fair.
Can the commission scale down
the operating expenses of a utility?
The resounding answer is in the af-
f1rmative and it is an often-uSed
device. Moreover, it is done in the
interests of the public. For instance,
if a utility in the state is paying
its officers exorbitant salaries, the
commission will not say that those
high salaries can not be paid; it
will, however, prohibit the company
from charging all of it to operating
expenses
There is a multitude of questions
of technical complexity involved in
the work of the Public Service Com
mission. 1t is rate-making agency
for interstate railroads, but it does
not place a value on them as it
does for public utilities. It's APP
proval is necessary before utility
can issue securities How we'll it
functions in this latter capacity is
best demonstrated by a leaf from
the commissions record.
A certain utility applied for per-
mission to sell an issue of refund
ing bonds at 80 per cent of par. The
commission, cognizant of the good
condition of the bond market,
baked at the sale of the issues at
such a low figure. The company
maintained that 90 seemed,
from preliminary conversations with
bankers, the best obtainable price
The commission remained insiStent
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-07-10

as now, laissez faireswas the shib-
boleth. The first railroad COM
mission in the country was created
by Rhode Island in 1889. Other
states followed, but the commissions
were weak structures; they had no
administrative authority and were
largely fact-finding bodies.
Regulation, if any, was up to the
state Legislatures. Ground for lax
ity was present in the fact that
many of the railroads owed their
existence to the financial help of
either Federal or state governments.
The little regulation. nevertheless,
was cited as the cause of the panic
of 1873, and, as a result, the few
commissions which did have rate
making powers were deprived of
them. When the Interstate Com
MERGE Act was passed Legislatures
were thankful, as it relieved them
of part of the responsibility Of rail-
way regulation.
Before Hughes then public util-
tiles received their franchises from
the communities in which they were
to operate. Corruption was nur-
tured and utilities began to control
political affairs. In Cleveland they
openly bought the council, accord
ing to Frederick Howe in The Con-
LESSONS of a Reformer."
Establishment of the Public Serv-
ice Commission in Indiana was at a
particularly inopportune time. No
sooner had the body been in exist
ence when imitation drove rates up
ward. Seven years later the Farmer
Labor Party asked for its abolition
and was joined two years later in
this demand by the Republicans.
The work of Ex-Governor Ralston,
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-07-10
PORKERS SHOW
UNEVEN TREND
Prices Steady to Largely
80 Cents Lower in
Some Glasses.

An unusual trading range pre-
vailed in the pork market at the
local stockyards today and the price
trend was irregular. Prices of hogs
weighing under 225 pounds re-
manned unchanged at yesterdays
best average, while heavier grades
were largely to 80 cents lower.
A light demand and a fairly lib
eral run of the heavier weights was
responsible for the price drop. The
decline came in face of a moderate
drop in the number of supplies
available. Today's receipts were
estimated at $500, compared with
$500 on hand yesterday.
The general bulk of 100 to 235-
Founders caShed in at 1895 to
$10.05. This also was the top price
paid for good and choice grades.
Extreme heavies sold downward
from $500. Lightweights, scaling
from 100 to 100 pounds, which re-
manned unchanged, sold at $915 to
1855. Others from 100 to 100
pounds, brought $840 to $500.
Packing sows held at SITS to $3.50.
Holdovers we're 358.
With the exception of she stock
showing slightly more activity than
steers, the cattle market was prac-
tically a continuation of yesterdays
session. Good and choice steers.
weighing around 1400 pounds, were
valued to sell at $12, while the bulk
sold under $11. Most heifers brought
$3.50 to $9.75. Bulls cashed in at
$3.50 to $6.25.
Vealers again continued unchanged,
with good and choice kinds selling
from So tor $3.50. Receipts were 700.
With demand extremely light and
supply liberal, lamb prices were
sharply so cents lower than yester-
days close. Bulk of better grade
eve and wether classes sold at So
to $8.75. Bucks were discounted 81,
while slaughter sheep brought 81 to
So. Receipts were 1900.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-07-10
$4,000 STORES PLAN
TO SPEND $144,OOO,O0O
Extensive MOdernization PrOgr' ms
Outlined for Year.

Extensive MOdernlZatlOn PrOgr' ms
Outlined for Year.
BIZ Times Special
NEW YORK, July 10.-Approxi-
mately $4,000 department, dry goods
and speciality stores will spend a
total CT $144,00O.000 for moderniza-
ton during the year, according to
survey made by the store manage
ment group of the National Dry
Goods Association.
In the survey more than 400
stores with annual sales ranging
from less than $4,000 to more than
S15.000,0O0 were covered. Stores re-
porting to the association plan an
average expenditure OF $37.959 a
store for the year, an increase of 48
per cent over the average expendi-
lures of SOS. 484 in 1884.
The modernization programs of
the majority of stores calls for air.
conditioning, escalatorS. new light
ing fixtures, new fioorings and SIM
liar materials and equipment. APP
proximately 1853 per cent of the
stores covered in the survey report
that they are engaging or planning
modernization programs for the
year.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-07-10

on its original point and finally the
issue was sold at 90.
BY this exercise of its lawful pre-
rogative the commission did a Serv-
ice for the consumers of that par
ticular utility. If the company had
been able to sell its securities at
its suggested figure. the rate-pay-
ers would be charged a rate for
service on the basis of full par
value of the bonds. despite the fact
that the company received only 81
per cent of par in actual cash. If
the commission did not have this
power holding companies could milk
dry operating companies in their
system by the simple expedient Of
purchasing subsidiaries bond issues
at sizeable discounts from par.
The Indiana Public Service Com
mission enjoys the distinction of be-
ing a pioneer in the matter of regu-
lating rates for motor vehicles. In
its reasonably famous Order No.
1l700," approved Nov. II. 1888. the
commission established rates, rules.
regulations, practices and minimum
charges applicable to common car
rier by motor vehicle and contract
carrier by motor vehicle.
The Public Service Commission is
one agency which does not belle its
name, albeit it has its critics. The
shaky inception is in the back
ground. The present body has been
uncannily successful in weaving
voluntary" reductions for utility
consumers of the state. Rate cases,
the financial bane of both the COM
pany and the state, are not yet a
thing of the past. But at least the
utilities are reluctant to fight the
commission tooth and nail on every
1NniF1f
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-07-10
On Commission ROuU

Quotations below are average wholesale
prices being offered 10 buyers by local
commission dealers:
Fruits-Bananas. 4s4c a H. Gooseberries.
case. 50. BlackberrieS. 24-ot. case. 50 so.
Blueberries. Georgia. 24-at. crate. 50 SO.
Cherries. sour 24-Qt. crate. 50. CantalOupeS
California jumbo 36s. crate. S325: jumbo.
ass. $3.50: California standards. ASS SO so.
Matches. Georgia. Blues. half bushel.
Sl40; Georgia ElbertaS. half busnel. 81 so:
Honey Dews. California. S2.25. Water
melons. Wstsons. 60c: round. 40c. Apples.
$50. 1925. SO Grapefruit. Florida seedless.
64S 70S. sos 50 so California SeedleSS.
COS. zoos Pts PineapDleS. AIS. 50. Lines.
Mexican. per carton. zoe. Persian. SeeoleSS.
hundred. 50.
MISUNDERSTANDING. home srown. bu.
Si.6S. Kentucky yellow. 50-lb. bag. 81 40
Potatoes. Green Mountain; loo-lo. bag.
slI0. new oobblers. 100 lbs. ST.. so;
northern Round Whites. 10o-lb. bag. s0c;
Ohios. f00-lb bag 81 so: Idaho Russets.
I00-lb bag 81. Sweet pOtatoeS-New Ala
hama a buShel. 81 40. Beans. green string
less hampers. $50: wax. 50 CELERY.
washed. doz. 81 IS. medium. 4So; iun5o.
TSc, California. crate SS.75: Florida crate.
81 Cucumbers. dollhouse. doz.. 90c, l-ooz.
COX. zoe. Egg plant 81 so doz- ksle. 6uShel
tuce. dollhouse l5-lb. basket. 45c: Cali
fnrnia Iceberg head lettuce. 81 Mansoes.
81 IS a hamper: small basket. 35c. MINT. =
doZ.. 7Sc. Parsley doz.. 35c Peas. home
sp Sqsaf oms sToTn bGshe sse
RadiShes. 2-doz basket CSC. TurnipS. new.
2 doz.. Csc. Beets. home grown; a doz..
2oo Carrots, home grown, doz. Csc: new.
soc. Mushrooms ID 500 3Sc Tomatoes.
home grown. lob. carton. Sl.25; Doz-. soc.
Az quotations subject to change up or
down.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-07-10

who set up the commission, was a
large factor n multiplying the clamor
of the diSsenters.
Today the commission continues
to cast its supervisory eyes over the
entire dominion of public utility
affairs in the state. Running the
gamut from belligerency to compro-
mise, the agency stands ready to tote
the public's standard whenever the
occasion demands. 1t has two prime
aims to CONSIDER: ID That the Gus
toner obtains quality service at a
reasonable price, and % that the
company has a reasonable and fair
return on its property.
Up to 1888 there were five men,
bers of the commission; now there
are three-Chairman Perry Mozart,
Samuel L. Trabue, and Mole Cook.
Assisting them are approximately
100 workers. When the occasion de-
mands it, such as in the case of
stiff rate battle, the regular staff can
be enlarged.
Specifically, the public utility laws
provide that a company coming
within its jurisdiction is entitled to
a reasonable return on the used
and useful property, plus operating
expenses. What this means is that
a utility is not entitled to return
on any property which has become
obSolete-no longer useful.
What is a reasonable return? The
connotations in the elastic phrase
reasonable return" are varied. 1t
is not definite figure; it can be
upheld by the courts in some in
stances and declared conf1scatory
in others. Insofar as the Indiana
commission is concerned, it appar-
emily has been leaning toward 6
per cent return. 1t is probably best
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-07-10
SUGAR IMPORTS SHOWN
2,79O,037 Short Tons Shipped to
U. S. in Six Months.
By United Press


WASHINGTON, July 10.-Sugar
amounting to 2,790,037 short tons,
raw value, entered the United
States for consumption during the
first six months of this year from
Cuba, the Philippines, Porto Rico,
the Virgin Islands and Hawaii, the
AAA sugar section announced to-
day.
The quantity was 62.6 per cent
of the total admissible under quo
tas.> Amounts charged against 1885
quotas: Cuba, 1,088,035. $3.50 per
cent of quota; Philippines, 582, 444,
63.42 per cent; Porto Rico, sos. 003,
1912 per cent; Hawaii, 520,530, 1928
per cent; Virgin Islands, 1925, 1919
per cent.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-07-10
FACTORY YIELD |
DECLINE SEEN;
MAY SET LOW
Output in First Five Months
in Excess of Demand,
Study Says.
BIZ Times Special

By Times Special
NEW YORK. July 10.-In view Of
the relatively high rate of manufac-
turing activity during the first five
months, the currently estimated de-
mand index points to sharp cur
tailment of manufacturing activity
during the remainder of the year
unless there is over production, &C
cording to the Alexander Hamilton
Institute
If manufacturing activity were
kept in line with the demand dur
ing the final seven months of 1885.
it was pointed out, it would be
necessary for the monthly index to
average SO in order for the annual
output index to equal the estimated
demand index of 70 since the av-
erage index for the first five months
was 90.
Might Reach Low
Under such circumstances, it is
opined. factory output might at
some time during the remainder of
1895 drop back to the low for the
depression because it is unlikely that
the index would hold steady to the
average. AT the low, in July, 1882,
the index was 55.
AT the present time. it is question:
able whether the excessive produce
ton of the first five months will be
corrected during the remainder Of
the year. There is a good possibility
that activity will hold up at a fair
rate at least until the final months
of 1895 as result of a continuation
of production.
IF this proves to be the case" the
Institute points out, the course Of
manufacturing activity will present
a pattern similar to that of 1929.
This suggests that the unpleasant
sequel to the excessive activity of
that year may to some extent be
duplicated in 1886.
One Big Difference
There should. however. be one
striking difference. In 1880, values
were in the process of def1ation and
a definite basis was lacking for max
ing the adjustments necessary for a
full volume of business. This def1a-
ton was completed in 1882, and
business next year will be on solid
ground in making the adjustments
needed for recovery from a recession.
Due primarily to a curtailment
of automobile production, which was
the chief support of general manu-
featuring activity during the first
four months of the year, production
of factory goods in May showed a
recession from the April volume.
Manufacturing activity in May was
also lower than in the correspond
ing month last year for the first
time in 1885.
THE price level of manufactured
goods was slightly higher in May
than in April, but the increase was
not sufficient to offset the drop in
the quantity of goods manufactured.
Consequently, the index of the value
Of factory output declined from 75.9
in April. the peak of the recovery
movement, to 73.5 in May. The
value of the output in May. how
ever, was higher than in the same
month of 1884, when the index was
701."
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-07-10
LIQUOR FEES DEPOSITED
Nebraska Pays Treasurer S25,26S in
Two Weeks Time.
By Times Special


LINCOLN, Neb., July 10.-During
the last two weeks since the sale Of
liquor has been legal in Nebraska
the commission already has paid
$25, 268 into the state treasury from
license fees, it was learned here to-
day.
In addition 82,545 has been de-
posted with the state treasurer by
the commission for the liquor con-
troll fund and is made up by liquor
taxes. The commission has mora
than $4,000 in banks, according to
the state accountant.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-07-10
Produce Markets

The prices quoted below are paid fol-
stock gathered in the country, while de.
livereo in Indianapolis the price will be
cent higher. HEAVY breed hens. IL; Leg
horn breed hens. l0c: heavy breed COCKS,
&c; Leghorn breed cocks. Sc; colored
broilers. ? lbs. and up. l3c: Leghorn broil-
erS. IL lbs. and up l0c Bareback broilers
loo: ducks full feathered and fat. &C.
geese fun feathered and fat. Sc: No. ]
strictly fresh eggs. loss OF Ice. Each full
case must weight IS lbs: gross. deduction
Butter-No. l. 22623c: butterfst. 20c
Quoted by the Wadley Co.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-07-10
LIVERPOOL BREAK
UNSETTLES WHEAT
Fractional ReCeSSions Pre-
vail in Early Deals.
By UHited Press

By UHited Press
CHICAGO. July 10-A break in
Liverpool offset continued black
rust reports as market influence
today, and prices eased on the Board
of Trade.
At the start wheat was 4 to Z
cent lower, corn was 4 cent lower
to Il cent higher. Oats were off
4 to = cent, and rye declined Is
to p cent.
Although black rust was reported
in new areas of the Northwest,
there was scattered selling of wheat
at the start based on a decline in
TIE Liverpool market and favorable
weather in the Southwest.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-07-10
STOCK VALUES CLIMB

- 2 frlfs spec al
NEW YORK. July 10-The mar
ket value of so representative stocks
listed on the New York Stock Ex-
change at the close of the week
ended July 5 was Sl3.448. 964.375, an
increase of $40 .399 .625. or $50 per
cent compared with total value of
the same issues in the preceding
week, Paul H. Davis g. Co. an
nounced today.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-07-10
LEAD PRICE BOOSTED
BIZ Times Special

Iftts NVFfIUI
NEW YORK, July 10.-The cur
rent price of lead has been advanced
5 points to 40 cents pound in
New York by the American Smelling
and Refining Co., it was announced
here today.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-07-10

This Is the third Of six articles de-
seribing the history and functions Of va
rieus state departments. whose super
visory activities are so necessary for
the public good.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-07-10
lBy James E. Kenneth
LOCAL CASH MARKET

CITY grain elevators are paying SO cents
for No 2 soft red wheat Other grades on
their merits Cash corn No. yellow.
10 cents and oats 20 cents.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-07-10
Add Success Story

John MacAahon left Ireland so gears ago to make
good His first Job elevator operator for Reid Muir
dock Co., Chicago 1cholesae grocery This 1ceek he
elected chairman of the company.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-07-10

TREASURY STATEMENT
by United Press
WASHINGTON. July l0.-Government
expenses and receipts for the current rs
cal year 10 July 8, compared with a year
ago.
This wear Last year.
Expenses 406. $40. 744 81 s 1856 059 352. 80
Receipts Sc. 557 992 90 90 375 96s. as
Dsficit 3Is $50. ISL So e9A663 3S4 "a
Cash bal. i.5O9. 500 I2l.i4 ASA 039. s22 10
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-07-10
N. Y. Bonds

(Bv Abbott. Proctor 81 Panel
Reprinted From Yesterday
DAILY BOND INDEX
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-07-10
Unlisted Stocks

fBv Blyth & Co. me-
NEW YORK BANK STOCKS
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-07-10

Quotations below are average wholesale
prices being offered 10 buyers by local