The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-07-11
Trends
indianapolis Power
& Light Report
Interesting.
BY VINCENT LYONS
Times Financial Editor

A KINSHIP still exists between
"A the indianapolis Power 81
Light Co. and the Utilities Power
& Light Corp. ailing enterprise Of
Harley L. Clarke. utility magnate
Of Chicago. St. Louis. London and
parts. At least that would seem to
be the case after an examination
OF the local company's 1884 annual
report. which was fled in TIE Sec
rotary Of States Office this week.
The strongest indication that the
two companies have not told it to
a Reno Judge. hguratively speaking,
is that the Utilities Power &c Light
Co, the parent enterprise, received
approximately S600.OO0 in dividends
on the common stock OF Indianap-
oils Power and Light Co, the sub
sidiary. during the year. The divi-
dend was not earned, the funds
for the distribution being taken
from surplus.
Perhaps It is niggardly 10 ques-
ton the distribution at this time
when it is recognized that it was
the first payment on the shares
since June. 1881. There is an ex-
use for the righteousness when
further analysis of the report dis
closes that under the item &C
counts receivable" is the sum of
1897. 900 which Utilities Power 81
Light owes indianapolis Power 81
Light in connection with the pur-
chase Of 24,294 shares of common
stock.
THERE are 10000 common
Il shares of indianapolis Power
& Light outstanding, of which
645,971 n reported to be held by
the parent company. Nine other
holders own the remainder of the
stock. These 10 holders. through
their ownership of the common
stock, in effect control the COM
pany, as the junior shares have
sole voting rights so long As divi-
dends are maintained on the pre-
ferred issue.
The sum of $50, 8O7 was paid by
the local company during 1884 to
the parent enterprise and an af-
hliate-The Management and En-
gineering Corp.-fOr miscellaneous
services. This was broken down
into three divisions in the report
as follows:
l.. SI5,544 paid to the Utilities
Power g. Light Corp. and The
Management and Engineering
Corp. for general management.
supervision, financing, purchases
of material.
?. S7275 to Management and En-
gineering Corp. for special super
vistOry, engineering and operating
services, and
g.. S7988 for use of the facilities
of Utilities Power & Light Corp.
for stock transfers, preparation,
publication and distribution of re-
port.
Those persons who have made
improbable investments are now
Joined by indianapolis Power 81
Light as the annual report reveals
that a purchase of 500 par value
of indianapolis Airport Corp. COM
mon stock has been written off as
worthless. Several other adjust
ments in the value of investments
were made during the year.
TN so FAR as the income account
Il of the company is concerned.
the results for the year were much
improved over 1888. The balance
of earnings, after all charges and
taxes. preferred dividends and bond
interest. was S9484. contrasted with
a deficit of SOB, ITO after the same
deductions in the preceding year:
Such an improvement is tanta-
mount to embarrassment, as the
Public Service Commission at pres
ent is engaged in the work of re-
valuing the property of the plant
preparatory to approving consumer
rate schedules.
The betterment in the earnings
position might be minimized be-
cause only S9484 was carried to sur
plus. 1t should be remembered,
however, that the dividends and in
terest on the preferred stocks and
bonds are high for the current
cheap money era. For instance,
dividends alone on the two issues
of 6 and o. per cent preferred
stock accounted for 1886 ,554 of
earnings last year.
The schedule of average revenue
per kilowatt hour. contained in the
annual report, shows that rural
customers pay the highest charge
of 5.90I cents. In residential serv-
ice. the rate for lighting and in
Cidental purposes is 1868 cents: for
heating and cooking, 1886 cents,
and for industrial purposes 1.400
cents.