Jasper County Democrat, Volume 18, Number 30, Rensselaer, Jasper County, 17 July 1915 — LAFAYETTE CHAMBER OF COMMERCH IS CAUTIOUS. [ARTICLE]

LAFAYETTE CHAMBER OF COMMERCH IS CAUTIOUS.

•' rm- -er O. L Bfowi:. of the Lafayette & Northwestern 'Railroad Co., recently asked the Lafayette Chamber of Commerce for an indorsement of his company and project and also an indorsement of his proposition asking for a $71,000 subsidy in Wabash tp., Tippecanoe county. The Chamber of Commerce refused to give an indorsement at that time of any of tho propositions, but appointed a committee to investigate the company, as stated in a recent issue of The Democrat. This committee reported at the ( hamber of Commerce meeting Tuesday, and in commenting on same the Lafayette Journal said editortally in its Wednesday issue: ' •

la our opinion the directors of the Chamber ot Commerce showed good judgment yesterday when they refused to indorse the Lafayette & Northwestern interurban project in its present form. These directors are business men and they looked at the matter from the business viewpoint, deciding to first make certain of the financial backing of the project, its legality and the prospect such a line would have for meeting operating expenses and paying interest on the investment. Had the directors of the Chamber of Commerce given endorsement to the plan without first making a rigid investigaticm they might have been

parties to a stock promotion scheme that would redound to the everlasting discredit of the Chamber of Commerce. The business men of Lafayette are favorable to any interurban road that wants to enter this city and they are ready to give their support to such a project. But there is only one way to proceed in such matters and that is along the business like way. Any interurban proposition that is

right would not expect, much less ask, anything else. One very important mat ter to consider in connection with the Lafayette & North western project is the legal standing of the new company. The- utiliy commissionA act. .which [jecame a;. law in 1!• If,’, has changed the .whole procedure as to utility organization ami promotion Con-e----<u»ntly /any interurban project at this time, to b< leeal. must com -ly wit 1 t ha; law which gives the public service commission authority over organization and stock and bond sales. The Lafayette & Northwestern road has not vet complied with the ■ ■ sot. this h'v. had :),•• dire ctors .of the Chamber o? Commerce •given endorsement. pending indorscii en:. by ihe comm, ...ion. they would have pur. themselves liable,to severe criticism/ /■ - it is very clearly ; stated in section !» 1 o: i.. •■ utility commission act that whenever a .. public, utility desires to issue, stocks, certificates of stocks, bonds, notes, or other evidences of indebtedness it shall file with the com mission a statement verified by its jiresident: and secretary, or two pi its im orpor- ’ ator- or jswriers, . setting forth the amount and the character, of the securities proposed to be issued, the purpose tor which they’ are to be issued, the description and estimated value of any property to be acquired thru the said issue, the amount of cash to be received for said * securities, the financial condition of said utility and its previous operations so far as relevant. For the. purpose of enabling it to determine w hether the proposed issue complies, with the provisions of the utility comniission act, the commission shall make such inquiry or investigation, hold such hearing and examine such witnesses, books, papers, documents or , contracts as it may deem of imI portance in enabling it to reach a determination.

It is evident- by the provision of this act that the Lafayette & Northwestern road, or any other interurban project. has no legal right to offer stocks, bonds' or contracts or ask support until its whole plan is approved by the public service commission. of the Chamber of Commerce certainly would be acting beyond their authority were they to give indorsement to a project that has not complied with the law and is not yet indorsed by the commission. The promotors of the Lafayette & Northwestern traction line have proceeded on the theory that they could go ahead and sell stocks and bonds, make contracts, without the authority o; the public service commission. Thpre i s nothing in the utilities act to warrant any such concluison. The action of the. Chamber of Commerce directors is not hostile to legitimate enterprise. It ii the action of business men who consider business methods and who respect the law and who do not propose giving indorsement to a project before its right to exist has been established.

At this time the promotors of the Lafayette & Northwestern traction are more in need of/indorsement by the public service commission than they are-.yby the Chamber of Com-i 'merce of Lafayette.