Indianapolis Times, Volume 36, Number 221, Indianapolis, Marion County, 25 January 1925 — Page 12

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ZOE AKINS LIKES INTEREST SHOWN I IN DRAMA HERE Woman Playwright Prefers Informality in Audiences, ; Zoe Akins, playwright, Who will speak tcnight in Hollenback Hall under the auspices of the A. A. U. W., likes Indianians. She said so emphatically in a snatchy interview Sunday afternoon, while she was meeting Indianapolis people at a tea given by Misses Grace and Georgia Alexander, 1516 N. Pennsylvania St. Indianapolis people, appreciating the theater and what it has to offer, appeal to Miss Akins, she said. The playwright is a shy young woman with deep brown eyes and pleasantly curved mouth. After my lectures in eastern cities we became quite informal and questions were asked and answered,” she said. “I hope Indianapolis people will respond in this way.” The tea was attended bjr 150 representative persons interested in the arts and drama. Assisting were Mesdames Ernest Bross, Bernard Korbly, Carl H. Ldeber, John Bingham, W. O. Bates and S. E. Perkins. Miss Cornelia Bell, accompanied by Mrs. Mary Layman Forsyth, sang.

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In the Matter of Senate Bill No. 18 Relating to Holding Companies

To the Hon. State Senators, Gentlemen: Public Utilities abide by four thousand decisions of the Public Service Commisson in the last six years without appeal. The report of the Public Service Commission of Indiana, for 1923, shows that:. ' ■ . " In the year 1918—857 cases were closed by decision of the Public Service Commission. * In the year 1919—633 cases were closed by 'decision of the Public Service Commission. ( In the year 1920—857 cases were closed by decision of the Public Service Commission. In the year 1921 —636 cases were closed by decision of the PubUc Service Commission. In the year 1922 —469 cases were closed by decision of the Public Service Commission. In the year 1923—569 cases were closed by decision of the Public Service Commission. „ We can recall at this time, only six (6) out of said 4,021 cases, so determined by the Public Service Commission, which subsequently found their way into the courts. There may have been a few other cases appealed to the courts which wl have overlooked. The charge, therefore, that most of the Public Utilities have sought and seek to avoid orders of the Public Service Commission of Indiana, is without any foundation in fact and must, by the weight of its own falsity, fall by the wayside. OWNERSHIP AND CORPORATE CONTROL The mere fact that the stockholders in two or more corporations are the same or that one corporation exercises a control over the other through ownership of its stock or through identity of its stockholders, does not make either the agent of the other, nor does it merge them into one so as to make a contract of one corporation binding upon the other, where each corporation is separately organized under a distinct charter. Pittsburgh & Buffalo v. Duncan, 232 Fed.g .points 1 and 2, P. 587. •* The franchise granted to a railroad corporation must be exercised bv that corporation and by it alone. There is no identity between the individual or the corporation which owns stock in another corporation and that latter corporation. A corporation is an entity, irrespective of the persons who own all of its stock, and the fact that one person owns all the stock does not make him and the corporation one and the same person. It would seem that the citation of authorities in support of these well-established principles would be unnecessary; but we call attention to a few of the many that might be referred to: Fred T. Ulmer, et al. v. Lime Rock R. R, Cos., 98 Maine 579; 66 L. R. A. 394 The Court dismissed the bill, saying: “Confessedly the St. Louis, Iron Mountain & Southern Company keeps up its own corporate organization. It operates its own road. It has its own officers, and makes its own bargains. The Missouri Pacific owns all, or nearly all, its stock, and in that way can determine who shall constitute its board of directors, but there the power of that company over the management stops. The board when elected has controlling authority, and for its doings is not necessarily answerable to the Missouri Pacific Company. The two roads are substantially owned by the same persons, and operated in the samp interest, but that of th 9 St. Louis, ran Mountain & Southern Company is in no legal sense coutrolled by the Missouri Pacific . . The Missouri Pacific Company has bought the stock of the St.. Louis, Iron Mountain & Southern Company, and has effected a satisfactory election a. . • *.v., ■*.

A Puzzle a Day

Rea nange the letters forming the words “Gains, Rain, Bath” and you can form two new words that compose the title of a well-known book. Can you discover the name of the book? Answer to previous puzzle: PALES her fair cheek and back over all The LAPSE of years LEAPS memory. Those wedding PEALS to her recall The PLEAS he urged so tenderly. The five words, pales, lapse, leaps, jjeals and pleas, aye all spelled with the same five letters. (Copyright, 1925, NEA Service, Inc.)

WATSON DELAYED AGAIN Controversy Over Stone Halts Naming of Indiana Judge. Bu Time s Svecial WASHINGTON, Jan. 26.—Owing to Senate controversy over Attorney General Stone’s promotion to Supreme Court, Senator James E. Watson did not have an opportunity t - day to discuss the appointment of Indiana’s second Federal judge with the attorney general. Last Friday Watson announced he would make final selection today. As both he and the attorney general are now' completely wrapped up in the Senate fight, the selection of the new judge may go over some days. Indiana’s Collidge electoral votes were officially delivered to the Senate today by Willis B. Dye of Kokomo, special messenger for the Hoosier electors. VOTE INTEREST SHOWN State Ranks Second With Rhode Island on Percentage. Indiana and Rhode Island tied as States polling the second highest percentage of the total eligible vote for President last November, the National Association of Manufacturers announced today in publishing results of its “Get-Out-the-Vote Contest.” The two States voted 71.7 of their voters. Indiana had 1,772,596 ana 1,272,390 voted for presidential candidates. \ West Virginia voted the highest percentage, 74.8. Wyoming showed the greatest increase in vote over 1920, climbing from 61.4 of the eUgible vote in 1920 to 70.8 in 1924.

THEFTS INVESTIGATED Waitress Reports Cash Box Containing $lB5 Stolen. Detectives today investigated report of Emma F*itter,, waitress at Athens Case, 33 W. Maryland of disappearance of p. cash box containing $lB5 from under the counter. Roscoe Butner, contractor, 702 W. Morris St., reported a typewriter, adding machipe and check protector, valued at $2lO, stolen. A window of Abbott drug store, 1701 S. Meridian St., was broken and about $35 taken from cash drawer. Frank Maddox, 69, of North Salem, Ind., told police he was knocked down and robbed of $35 while drinking with three men at Senate AVe. and Pearl ,St„ police said. INJURED MAN ARRESTED John Tiepon Charged With Stealing Auto in Crash. i Severely injured and charged with auto theft, John Tiepon, 36, of 1122 S. Senate Ave., was in custody of Indianapolis detectives today. He was arrested by Sheriff Bowen of Johnson County Sunday following, collision near Greenwood, Ind. Police fharged he wrecked an automobile stolen from Walter Cates, 509 N. Jefferson Ave. Police said Tiepon’s companion, uninjured, escaped in an automobile stolen from Carl Gooden of Greenwood. War Veteran Killed Bv Times Svecial ANDERSON, Ind., Jan. 26. —John R. Hawkins, 23, escaped unscathed in major battles during the World War as an expert machine gunner and marksman, to be fatally x injured in a machine shop here. His clothing caught in a revolving belt. He died at a hoipital.

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the road, but that is not in law the control itself. Practically it may control the company, but the company alone controls its road. In a sense, the stockholders of a corporation own its property, but they are not the managers of its business or in the immediate control of its affairs. Ordinarily they elect the fgoverning body of the corporation and that body controls its property. Such is the case here. . . . It is not the corporation, in the sense of term as applied to the management of the corporate business of the control of the corporate property. “Evidence that a railroad corporation, by reason of stock ownership iii ode or'more other similar corporations, has been influential in bringing them into a connected system or route advertised or known under its name, seems similarly deficient in estabv lishing actual operation by the former of all the others, where each of the latter maintains its corporate identity and its individual operating organization. The organization of such a route or system does not fairly imply such operation by one of all the others. In the absence of further proof, it rather implies that sevefal lines of road have been brought into an harmonious operation to secure convenience to passengers and shippers, and for the purpose, so far as possible, of keeping the traffic which originates on one road of the system on the other connecting roads therof.” Stone v. C. C. C. & St. L. R. pf. Cos., 35 L. R. A,, r. 773 | The Investment Company, whatever may be its control over the Junction Company, or the Stockyard Company, can not in any sense be deemed a common carrier. Its ownership of the entire stock of the Junction Company would not make it, any more than such ownership would make an individual, a common carrier. It might be a sense,’the owner of a common carrier; but, as it is not itself a common carrier, it does not in our judgment, come within Section 1 of the Interstate Commerce Act, or Section 3 of the Elkins' Act. U. S. A. v. Union Stock Yards & Transit Cos., 192 • ' Fed. 7, P. 342 We challenge any one to find any case holding that a holding company, which is not operating a utility, becomes a public utility by reason of the purchase of the majority of the stock of a public utility. ' The case of the Ohio Mining Company v. Pubhic Utilities Commission, PUR 1923, E 180, has been cited. The case is not in point here. In that case the corporation, the status of which was in question, and which was held to be a public utility, was in the v wholesale power business, furnishing electric power to its associated distributing companies, but not directly to the public. It also held the stock of the distributing companies. It stood toward its associated companies so far as being a public utility was concerned, in the same relationship that the Indiana Electric Corporation stands to its associated companies. The moving reason for holding the Ohio Company to be a public utility was rot its ownership of the stock of ttie distributing companies, but the fact that it was actually furnrening electric service to the publio and for the public. The Indiana jEleotric Corporation could deny being a public utility with much more reason than the Ohio power company. , ■ % s It appears that no state in the United States has attempted to regulate holding companies as public utilities, though several states have similar statutes. The question has been }>ef ore several commissions and such commissions uniformly have held that they had no jurisdiction. The Massachusetts Commission held that the accounts of a railroad company which was both a holding company and an operating company should be ignored so far as they related to Its transactions as,* holding company and examined only so far as they related to its business as an operating company, in an investigation to determine tho reasonableness of proposed charge. PUR 1915, B 362. t The Utah Commission refused to invesigate the affairs of a parent company in a proceeding to fix rates for a subsidiary street railway company, even though the parent company furnished the power to operate the cars of the street railway, company and the stockholders of both were identical. FUfc 1918, B 497.

TiUi LN jJiAiN aPOLiS TiMJbJS

LEMCKE DECIRES CONTROL OF G. 0. P. UP jo COURTS Rival City Chairman Says Walb’s Statement Means Nothing, The battle for control of the Republican city committee is up to the courts, for the present at least, and not •to Clyde A. Walb, Republican State chairman. This.is the stand taken by Ralph A. Lemcke, rival claimant of George V. Coffin for the city chairmanship. Walb announced Saturday in the absence of any appeal from the I>emCke faction he would recognize Coffin as city chairman. “Os course Walb-can make any statements he wants, but that does not alter the legal status of the situation one bit,” Lemcke said today. "Our contention is that the whole situation hinges on the decision by

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BRIEF IN OPPOSITION TO THE BILL

Judge Sidney S. Miller In Superior Court Three, on the right of twentysix precinct committeemen, elected by vote of the people to hold their of ices.” If these twenty-six are entitled to their seats, as we believe they are, then we can go to the State committee and present our case from a legal standpoint If we lose before Judge Miller there is no peed of us going any further.” .Judge Miller has set Feb. 14 for final hearing on the injunction suit brought by them against Coffin to retain their seats.

Widow Awarded SIO,OOO

Mrs. Thomas L. Carleton, widow of Thomas L. Carleton, 82, killed May 15, 1923, when his. automobile was struck by a truck belonging to the Keystone Gravel Company, has been awarded SIO,OOO damages by a jury in Superior Court Two. Complaint charged the truck was speeding. "

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The* case of Wolff Packing Company v. Court of Industrial Relations, U. S. PUR, 1923, D 746, is very enlightening on this subject In that case, Chief Justice Taft, who delivered the opinion for the Supreme Court of the United States, laid down the rule that a Legislature can not declare a corporation or a business to be a public utility when it is not, in fact, engaged in public service. In that case the State of Kansas was attempting to assume jurisdiction over the business of the Wolff Packing Company, and the Supreme Court, in denying jurisdiction, held that the business over which jurisdiction was sought was not sufficiently clothed with public Interest to give the state juris * diction. The power of the si ate to regulate is limited by the constitution. There must "be no doubt that the business is of public character. The kind and character of business must be clearly defined in the statute beyond question. Judge Artman s )ems to have missed the statement of the fundamental rule fc md in Chicago, Etc. Cos. v. Minneapolis Etc. Cos., 247 U. S. 940, viz.: “Ownership alone of capital stock in one corporation does not create an identity of corporate interest between the two companies or render the stockholding company the owner of the property of the other or create the relation of principal and agent or representative between the two.” IMPAIRMENT OF CONTRACT It Is provided by the Constitution of the United States that no enactment of auy Legislative body shall impair a contract. It is apparent to any judicial mind that one who purchases fifty and a half (50%) per cent of the common stock of an operating public utility of Indiana can not have thereafter Imposed upon that stock any additional burden which impairs the contract of purchase. If a holding company has heretofore purchased fifty and a half (60%) per cent of the common stock of a utility of Indiana, then cortainly, if the Legislature of Indiana enacts a bill making a holding company, which has purchased that block of stock, a public utility of Indiana, an additional burden has been imposed which impairs the original contract of purchase and is, therefore, in violation, of the Constitution of the United States which provides that the obligation of a contract shall not be impaired. ARBITRARY CLASSIFICATION ; It is fundamental that arbitrary classification is against the law. We submit that it is arbitrary for the Legislature of Indiana to undertake to say that a difference of one-half of one share of capital stock shall make a public utility. To Illustrate, under the proposed bill ( (Senate Bill 18) one who owns fifty and a half (50%) per cent of the common stock of a public "utility of Indiana, ipso facto becomes a public utility, whereas the owner of 49% per cent of the common stock of a public utility of Indiana, doea not come within the provisions of the bill. We submit that this is an unreasonable and arbitrary classification which .will not stand the test of the Constitution of the State of Indiana. SALE OF STOCKS AND BONDS The minimum price at which the bonds and stocks of a public utility shall be sold are fixed by the Public Service Commission of Indiana and the public utility can not sell such stocks or bonds for less than the amount so fixed by the Public Service Commission. If, by authority of the Public Service Commission, bonds and stocks are sold for less than par, then the sale is a legal and valid one. -The Pubjic Service Commission grant3 rates which generally allow public utilities to earn seven (7) per cent on the toted value of the property used and useful in its business but out of this seven per cent, the public utility must pay the bond interest and the interest on preferred stock and in addition .hereto pay into a sinking fund, created by order of the Public Service Commission, for the purpose of bringing bagk into the treasury of the public utility, the amount taken out by reason of the allowed discount, and If there is anything left the ownera>of the common stock may get a dividend thereon, but the fact that the Publio Service Commission allows the public utility to seven

CHICAGO PUBLISHER DIES Apoplexy Fatal to John C. Eastman, Former Hoosier Editor. Bv United Press CHICAGO, Jan. 26—Friends today planned to carry out wishes of John C. Eastman, publisher of the Chicago Dally Journal, that "no words of praise” be spoken at his funeral. Eastman died Sunday of I stroke of apoplexy. Borp at Eaton, Ohio, was editor of the Wabash (Ind.)

Vlsltthe

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Times, business manager of the New York Journal and first publisher of the Chicago American before he purchased the Chicago Journal in 1904. T. B. Deaths Increase Figures complied by H. M. Wright, director division of vital statistics,

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• per cent does not mean that seven per cent is earned on the common stock. The public utility does not violate the law when it sells its stock and bonds at a discount if they are sold by and with the consent and upon the order of the Public Service Commiesion of Indiana. There is no fixed and stable market value for stocks and bonds. Generally the purchaser of stocks and bonds names the price that he is willing to pay for the same, the value of stocks and bonds fluctuates daily, today a stock may be worth fifty cents and tomorrow it may be worth a dollar. But there is one thing sure and certain —that the discount allowed on the stocks and bonds of a public utility of Indiana is not reflected in the rates charged the consumers. EFFECT OF SENATE BILL No. 18 If one or more persons shall purchase a majority of the stock of a public Utility, then he, or they, under the bill, become a public utility. In other yrords, if five citizens of the State of Indiana should Join together and purchase the majority of the stock of a public utility of Indiana, they -would at once become a public utility and their private financial affairs would be subject to the jurisdiction and investigation of the Public Service Commisslon of Indiana. If more than fifty per cent of the, stocjflfc of a, public utility of Indiana should fc 3 pledged to a bank In State of Indiana, or elsewhere, to secure a debt, the bank would thereupon become a public utility of Indiana, notwithstanding the fact that it is a banking institution and not a public utility. Upon analysis of all the cases cited in the brief of the Chairman of the Public Service Commission, it will be found that the distinguishing mark is this —that a holding company of a majority or all of the stock of a public utility only becomes a public utility when it is itself a public utility and you will also find that all the cases cited In the brief of the Public Servpe Commission hold that the courts will look beyond the form In cases where one corporation has attempted by some fraudulent device to defeat the operation or the application of some particular statute. In conclusion, we wish to call attention to the ffict that the Shively-Spencer Utility Act was borrowed almostjfcprbatim from the Wisconsin Utility Law. That this was done 'Wecause of the marked success of the operation of the law In that state and among other states which have also accepted the same regusystem. For almost twenty years, the eminent commissioners of Wisconsin have administered this law with no amendments and to the satisfaction of the people of Wisconsin as well as its utilities. It Is noteworthy that In so many states, including Indiana, the law under so many different commissioners, has proven efficacious and comprehensive in the regulation of these important enterprises. The Act itself and the law of the land permits a resort to the courts from any unreasonable finding or order of the Commission. That so few cases have arisen where such resort to the courts has been attempted, is a refutation of any charge of the breaking down or the failure of the Act. The experience of other states has never developed an instance where the necessity, for radical legislation such as suggested in the proposed bill, has been found. There is no reason to suppose that a Federal Court will give a utility anything to which it is not entitled, nor is there any reason to suppose that a decision of the Public Service Commission will be overthrown by a Federal Court If that decision is right. On January 23, 1925, the Greensburg Water Company prayed for an injunction against the Commission in a case filed by jffc in Federal Court in Indianapolis. The Federal Court refused tI?W injunction. If the Commission Is right, in any case, the Federar Court will uphold it. If the Public Service Commission is wrong in any given case, it should not have the power to perpetuate Its own wrong. We therefore submit, for the reasons above stated, th.it Senate Bill No. 18 ought not to pass. Respectfully submitted, CHAS. D. KELSO, Attorney, duly licensed to practice before the Legislature and its Committees. <*M aAwrtUeawnt pcMUted frHtoc Isdion* Public

MOiNLLdL l, Jxiis. -a,

State board of health, show the death rate of tuberculosis in Marion County has fallen from 118 for each 100,000 In 1923 to 107 In 1924. Actual number of deaths in 1923 was 437 and 415 in 1924. The colored population suffered most deaths proportionately.