Richmond Palladium (Daily), Volume 39, Number 116, 26 March 1914 — Page 1

THE'' ifeteiHlMOWB

PAIXAMUM '

, J -v

AND SUN-TELECJRAM VOL. XXXIX. NO. 116 RICHMOND, INDvTHURSD AY 'EVENING, MARCH 26, 1914 f ; SINGLE COPY 2 CENTS

ill

Demands "Present

Works Plant be Basis For Making by Public Service

VALUES PLANT

fnsists "Cost of Reproduction" Unfair Basis To Make Rate Schedule. Insists Utility Concern Not Entitled To Earn Return Greater than Convenience It has Contributed to Public. Reviews History of Capitalization of Company. Analyzes Statements Made Before the State Commission by Engineers.

Tn his brief filed with the state public service commission, which he made today, City Attorney Bond presents exhaustive arguments for the consideration of the "present value" of the Richmond City Water Works company's plant, rather than "cost of reproduction," which the company insists upon, as a basis for rate making Mr. Bond, in his brief, which contains eighty-four typewritten pages, contends that a fair present valuation of the plant is $667,678. In the introduction of his brief Mr. Sond says: "The state in the exercise of its sovereign power has at last reached forth her hand, which, seemingly through decades that have come and gone, hung palsied at her side, and laden with justice, equity and the square deal, has plucked unto herself the people's rights, many of which have been trodden under foot by grasping and grinding public service corporations. And while the state will not perpetuate any injustice against property, it likewise should not permit arty wrong or inequitable act to be performed against the rights of a long Buffering, public. Entitled to Net Return.

"This utility is entitled to a fair and l Purposes. This value is fairly, honreasonable net return upon the fair j estlv and Justly the sum of , $667,678, present value of that which it has which includes $5,000 for material and contributed for the public conveni-! supplies and $10,000 for working capence, but it is not entitled to anything j italwore by whatever name or whatsoever j "This plant today and at the time guise a claim therefor may be made, - when the improvements and betterMr. Bond asserts that a oublic ntil- nients now under contract are fully

tiprfn - any vvaluf greater than n ft cdnt tributed for public convenience. "When analyzed upon this basis, aud we see the entire proposition as it (actually exists, stripped of all unnecessary trimmings, its solution becomes easy, and what at first sight seemed an herculean task is now fully realized as onl;' a mathematical problem, which can be readily and easily solved for all the data are at our command." One of the interesting features of the brief deals with the capitalization Of the COmDanv. The brief reads-

'On March 6, 1909, the capital stock I wou,d be ""just, and perpetrate a posiVas increased from surplus $125.000, ; tlve wrojlS "Pn the public, or 50 per cent, making it then $375,000, i The cit-v attorney analyzes the esand it remained at this amount until I tiniates made by four hydraulic enDecember 21, 1910, and during this time i Sheers before the state commission $43,125 was paid as stock dividends, j at tne recent bearing, showing the or a yearly average of $24,070.42, which ' general average value for rate making Is a yearly average of 6.42 per cent. 1 Purposes to be $689,352.50. This genD . . .. . eral average is arrived at by the avRev.ews Transactions. I eraging of the following four estimOn December 21. 1910, the capital ates: ommission engineers, $669,645: fetock was increased again from sur- j Engineer Watt, for the city, $650,107; plus $75,000, making it then $450,000, ! Engineer Alvord, for company, $685,and it has remained at this amount j 044. and Engineer Meade, for company, ever since. From December 21, 1910, $752 613

10 me cicse 01 tne nscal year, June :jo. 1913, stock dividends to the amount of $112,500 were paid, making the average each year of $45,000, or exactly an average of 10 per cent per annum. Besides on June 30, 1913, there was a surplus of $106,257.19, as shown by the book audit thereof in this case, and this surplus, of course, is available for dividends, and counting this surplus as a dividend and adding it to the sum of dividends actually paid, makes the total of $434,382.19 for dividends actually paid and available June 30, 1913. "Assuming that the net income will amount to as much for the year ending June 30, 1914, as the preceding year, there would then be available for dividends on the common stock $141,396.76. or 31.19 per cent. These percentages make a yearly average of 6 27 per cent, which has been paid as dividends heretofore, and that is now available, on the basis of the full amount of the common stock as issued. Alleges Watered Stock. "But the common stock is watered to the amount of more than $100,000, for it is increased more than this emount. in order to make it more near ly correspond to the book value of j $120,164.88, which was added during the night of June 30. 1909, when the people were asleep. This was in fact, capitalizing the going concern value with a vengeance with something else added. And if this watered stock is not taken into account in considering and apply the above dividends, the average yearly dividend since June 30, 1913, would amount to $38,781.25, cr 35.51 per cent, and 011 this "oasis the plant has earned 205.58 per cent on the capital stock, and an average for each of the twenty-eight years of its existence of 7.35 per cent, and this calculation does not take into consideration the fact that the plant has earned $296, "50, which actual amount of surplus was absorbed , in making Increases to capital stock. "The increase on the capital from surplus is 90.43 per cent of the amount actually paid as dividends to June 30, 3913. not taking into consideration the rurplus of June 30. 1913, amounting to $106,257.19, and this is an average J early earning of 6.54 per cent on the ur .vstered common stock of the whole period of the plant's existence, and by combining these two per centages pf earnings one charged to dividends

SHIP

Value" of Water AT and the other to surplus we readily see that this plant has yielded an average net increase of 13.98 per cent -for each of the twenty-eight years of its existence, and leaving the surplus of $106,257.19. Some might call this a lemon, but it seems to us to be a luscious melon, full of water, and sweet as honey. And who has paid this income? The inhabitants of the city of Richmond who use the products of this plant, and the city from its taxes in order to obtain fire protection." Reviews Net Returns. Mr. Bond next shows that the total amount actually invested in common stock originally, exclusive of the swelling of the same from surpluses, was $153,250, and then asserts that the plant has earned net each year on an average since the date of its incorporation more than 15.09 per cent. He then says that during the twenty-eight i years of the plant's operation the annual net return upon the actual cash invested and the common stock amounts to 17 per cent. Then Mr. Bond says: "This is a brief, and, we believe, an accurate history of this plant as shown by its j books, and this basis is used in finding present value for rate making '-npwro-pe regaraea m mis case tor rate making purposes has an actual fair value of not more than $667,678." Mr. Bond next presents the argument that the cost of building up business should not be figured in by the commission as a part of the present valuation for rate making purposes, asserting that this cost has been paid by the consumers heretofore in excessive rates, and should be regarded as amortized and not capital- : ized, and made the basis of increased ' future earnings. He says to do this AGENTS SWINDLE YOUNGJEACHERS School Marms in County Are Made Easy Victims of Book Sellers. School marms were made the easy game of book agents during last week and several were induced to sign contracts to purchase $40 sets of books which were represented as having been recommended by County Superintendent Williams. Young teachers were selected by the agents and were told that Mr. Williams advised and urged the purchase of the reference books. The books were said to be the product of an Indiana research society, but in the contract which the teachers signed it was found that the authors are unknown Mr. Williams requested the township trustees to warn all teachers against taking any books said to have been recommended by him as he recommends no books. In Boston township one teacher was told that another had agreed to pay half on a set if the first would sign the contract. She signed for the $40 set and shortly after, found that the other teacher had not been seen by the agents and knew nothing of the books. SEIDEL AND BADING CHOSEN CANDIDATES MILWAUKEE, Wis., March 26 Emil Siedel, former Socialist mayor, and Dr. G. A. Bading, the present incumbent, who defeated Seidel two years ago, were nominated for mayor in Tuesday's primary, according to the latest returns. Under the new election law, which is being tried for the first time, Seidel and Bading, who were first and second in the primary vote, will contest at the regular election two weeks hence. "

Ratej Board! i I

$667.6781

B - BE

Listen!

: ICE TO COOK EGGS PROTECTS MOURNERS 16 DEGREES BELOW AUTOMOBILES OPERATED BY UNdertakers in Chicago are'public carriers and are governed by the same rate laws that regulate taxicabs, according to a decision by Judge Bowler who fined a chauffeur $10 for overcharging a funeral party. ' MRS. MARY KERWICK, MISSING for several days from her home in Wharton, was found lighting a fire beside a powder magazine which, if it had exploded, would have shaken the whole of northern New Jersey. illftlMft III T D A WI11 CTT davc no W. L. Bovie, of the Harvard cancer commission, cooked eggs on a cake of ice. WITH SPRING OFFICIALLY ADvanced nearly a week the following below freezing temperatures were reported today: Williston, N. D., 16 below zero; Bismarck, N. D., 10; Devils Lake, N. D., 8. In Abilene, Texas, the mercury stood at 84 degrees above zero. E LIKELY TO CAST VOTE FOR REP. GRAY AT Township Democrats Will Meet Tonight At City Hall to Select Delegates to Two Meetings. MEET APRIL 9 OR 10 To Hold Ward and Township Meetings to Elect Delegates to State and Congressional Conventions. Wayne township Democrats will hold a meeting this evening at the city building and will elect delegates and alternates to the district convention, to be held at Cambridge City, March 31, and the county convention, to be held at Centerville, April 14. The district convention will be for the purpose of nominating a congressman, and Representative Finly Gray will be nominated without opposition. The county convention is for the purpose of placing a county ticket in the field and promises to be a lively but harmonious affair. Organizers Busy. A few of the township conventions have already been held, several conventions are in session this afternoon and two or three will be held Saturday, when the full lists of delegates from the county to both conventions will have been completed. Representative Gray is far from being popular with the majority of the Democrats in Wayne county, but it is realized there is no chance tn n'r.foa him for re-nomination, so he will receive the solid support of the Wayne delegation, the largest in the district. The Democratic district convention at Cambridge City will be called to order at 10:30 in the morning and the temporary chairman will be Walter S. Chambers, of Newcastle, district chairman. Gray to Speak. Who the permanent chairman will be has not been announced. After the formality of nominatine Mr O the adoption of resolutions the convention will hear an address from the third term candidate. The total number of delegates in said convention will consist of one hundred and twenty-seven, apportioned to the several counties comprising the district, as follows: Fayette i n Franklin 15 Hancock 17 Henry Rush 15 Shelby 22 Union 5 Wayne 25 The Democrats will be the first to nominate a congressional candidate, but the Progressives some time shortly after the Progressive state convention, April 18, will nominate a candidate for congress. The time and place for holding this convention will be announced within the next two weeks. Ward and township meetings for the election of delegates to both state and congressional conventions will be held by Wayne county Progressives on either April 9 or 10. The exact date will be decided within the next few days. County Chairman Clifford Price said today. The time and place for holding the Republican district congressional convention has rnot been announced. Neither have Wayne county Republicans reached a decision regarding the placing of a county ticket in the field this year. If it is decided to nominate a county ticket, the Republicans probably will select their candidates at a convention. -. . - .

w

CONVENTION

K06

W is

ULSTERCAUSES ARM' CRISIS

TO HOLD T OF Throne, Cabinet and Parliament Wrestle With Problems Confronting Army in Regard to Home-Rule. REPORTED THAT 2 GENERALS RESIGN Col. Seely May Retain Post in Cabinet As He Resumes Duties After Conference With Asquith. BY HERBERT TEMPLE. LONDON, March 26. The army crisis brought about by the Ulster situation held the attention of the throne, the cabinet and parliament today. King George summoned Premier Asquith to Buckingham Palace this afternoon and their conference lasted so long that the Premier was unable to reach the House of Commons when the parliamentary session began. While the Unionists were waiting on the cabinet, the press association which is in close touch with the government announced that the resignation of French and Ewart had been accepted. This news coming to parliament while the premier was still at Buckingham caused a buzz of excitement. Chancellor Lloyd George announced that the second reading of the home rule bill will be taken up Tuesday. As the members gathered a persistent report was circulated that Field Marshal Sir John French, chief of the general staff of the army, and Lieut. Gen. Sir J. S. Ewart had resigned rather than accept the mandate of Premier Asquith that the army must obey the government orders unconditionally. The war office refused to deny or affirm the report of the resignation but they were generally accepted as true, and formed the basis of interpolation directed at "the government by the Unionist members. After members of the cabinet at the session had awaited he arrival of. the premier for some time first lord of the admiralty Cnurcr--CK&'PreipWr; wl n.ake a statement jaier regaraing; tns reported resignation." In response to sharp questions as to what the policy of the army really is Col. Seely, the secretary of war replied: "The accepted policy is that troops shall not be employed to aid the civil powers in districts with which they are territorially connected." Seely Resumes Duties. That Col. Seely will retain his post in the cabinet was indicated by the fact that he held a long, conference with Premier Asquith at noon and then resumed his duties at the war office. Winston Churchill, first lord of the admiralty, was present at the conference in Asquith's home and accompanied Seely when he left. Churchill was also present at the session at the war office when Col. Seely received the general officers of the army who had been summoned to London by secret orders. Grave developments were promised during the day as a result of secret orders issued to all general officers commanding army divisions in England to report themselves at once to Col. Seely. This order, taken in conjunction with the declaration of Premier Asquith that the liberal government would not tolerate in its service any body of men "who demand assurances as to what they will or will not be re-'l quired to do," showed plainly that the government had resolved on strong measures, to insure military discipline. Army Officers Resign. The actual home rule question and the threatened civil" war in Ulster province were overshadowed by the critical situation which developed from the wholesale,." resignation of army officers, who refused to serve against the protestant-ainti-home rulers in the north of Ireland. Although Premier Asquith has admitted that the government -bMindered and war Secretary Seely is still willing to resign because he "unintentionally misled his colleagues in the cabinet," the liberals who are supporting the Asquith regime declare that the ministry has successfully weathered the storm and that4rom now on the Unionist attacks " must necessarily grow weaker. " ' .-i, ; . : WEATHER FORECAST : 1 FOR INDIANA Cloudy tonight and Friday in north and west portion tonignx. TEMPERATURE. Noon Yesterday. .Maximum i. Minimum 42 W. E. MOORE'S FORECAST Ocasional showers. Probably thunderstorms tonight or Friday followed by falling temperature caused by shifting winds. SUMMARY. Storm reported yesterday divided into two sections. First caused last night's rain and now moving down the St. 'Lawrence Valley. The second is over the plain states and is moving toward, the lakes. ..Below sero. weather again' in tba far northwest. . , ,

IMF

PERKINS MAY HEAD - NEW YORK POLICE rtif That George W. Perkins, organizer of the International Harvester Trust, and reputed financial backer of the Progressive party, has been chosen by Mayor Mitchell for the appointment to the New York Police Commisslonership, is a rumor that is rapidly The fact that Col. Goethals has positively stated that he has not any intention of accepting the appoint- ! ment offered to him by the mayor, has caused the head of the local city government to decide on Mr. Perkins as the best available man for the job, it is said. RICHMOND YOUTH CAUGHT STEALING Elbert Dadisman Arrested While Attempting to Break in a Church. ! INDIANAPOLIS, March 26. A boy giving the name of Elbert Dadisman, or' Kichmond, Ind., was arrested by Night Watchman Edward Prewitt at 3 a. m. today. It is alleged that Dadisman and two other boys were trying to break into a church at New York street and Temple avenue with a "jimmy." The other two escaped. The Dadisman boy refuses to give their names. The police eay all three boys ran away from their homes in Richmond. Elbert Dadisman. 'while vounz in mond police Bay. He lives with his widowed mother at 408 North Fifteenth street. H was recently released from the reform school at Plalnfield on parole. The police do not know who Dadisman's two companions in Indianapolis are. No runaway boys have been recently reported to the local police, but Sergeant McNally says they are probably members of Dadisman's local gang. "A Richmond church was recently broken into now young Dadisman is arrested trying to break into an Indianapolis church. That looks significant," remarked McNally. Richmond police tried everything in their power to reform the Dadisman boy. He was frequently arrested for petty thefts, lectured and told to go home and behave himself. "He would generally steal something on his way home from headquarters," added McNally. Finally he was turned over to the juvenile court, which also exerted every influence to reform the lad, but in vain, and he was finally sent to the Plainfield institution. MARY NEWMAN DIES 1 Was M. E. Church Member For 75 Years. MILTON, Ind., March 26. Mary A. Newman, widow of Edmond Newman, who died about six years ago, succumbed at her home here this noon. She was ninety years of age. Four children, Florence, of Milton. Rutledge, of Chicago, Homer, of Orrville, O., and Virgil, of Cambridge City, survive. The late Mrs. Newman was a member of the Methodist Episcopal church for seventy-five years. She was born in 1824 at Jacksonburg and probanly was one of the oldest residents of. the county. The funeral will be held Saturday afternoon at 2 o'flick at the M. E. church. ' 4 EXHIBITS PICTURE AT INDIANAPOLIS "Woodland Pool," is the name of a beautiful picture Mr. Frank Oirardin of this city is exhibiting at the. Seventh annual exhibition of Indiana. Artists at the John Herron Art Institute at Indianapolis. The picture has been declared by many to be, one of the best pictures in the entire exhibit. The picture was also exhibited at the Fall exhibit and at that '.time attracted much favorable comment. j ODD FELLOWS TO BE HAGERSTOWN GUESTS Members of the Oriental encampment, Whitewater Lodge of Odd Fellows will leave Richmond for Hageratown at 5 o'clock Saturday afternoon on the Pennsylvania railroad. ' About fifty are expected to attend the meeting which will be held there. Arrangements have been made to transport the Richmond visitors to Cambridge City returning. The last of the county meeting will be held in Richmond April ISth, when between 300 and 400 visiting members ai;e expected. Definite plans for the gathering have not been made, as yet

Wilson Assured In House When

After Twenty

OPPONENTS PREPARE ATTACK

Opposition to President's Pet Measure Include Majority Leader Underwood and Progressive Leader Murdock. . "Truckling Attitude" of United States Toward England With Exhausting Diplomatic Negotiations Charged by Op- -ponents. House Members Expect Prolonged Discussion.

WASHINGTON. March 26 Word was taken to President Wilson by administration leaders in congress today that the Panama tolls, repeal bill will have a majority of 100 in the house when the final vote is taken. The leaders also told the president ! that the special rule to be reported ' today under which debate on the re- j peal will be limited to twenty hours, will have a majority of' at least fifty. These figures were accepted as authentic and accurate by the president and it was said at the white house that the administration no longer has anv fears about the outcome of the fight. With the opposing factions contesting every inch of ground the house today began the battle over President Wilson's proposal to repeal the free tolls clause of the Panama canal act. Bitter Debate Expected. A bitter and prolonged debate, extending probably over three days, Is expected by those familiar with the feeling among house members "and the final vote is not expected before late Saturday. Beseiged by requests for additional time the house rules committee agreed to grant twenty hours for debate on t the bill instead of fifteen hours, as at first proposed. The committee said that ten hours of this time will be controlled by Chairman Adamson, in charge of the repeal measure; five hours by Representative Knowland, Republican leader against repeals; one hour by Representative Lafferty. Progressive, opposed to the repeal, and four hours by to the repeal. The committee also voted to grant two hours for the- discussion of the special rule making the repeal bill in While the "committee- was reaching this compromise agreement the repeal bill suffered another temporary check in the house proper. When the latter body met the rivers and harbors bill was scheduled for final passage, but Representative Fitzgerald, of New York, called up the confer-J VILLA RALLIES MEN TO RENEWED ATTACK Expects to Retake Gomez Palacio Where Federals Drove Out Constitutionalists Late Yesterday. ARMY SPLIT IN TWO Today Was Day Set for Dou- . ble Celebration At Provisional President's Capital at Juarez. JUAREZ, March 26. Gen. Villa has rallied his troops and has renewed his attack on the federals who drove the constitutionalists from Gomez Palacio, according to brief message received by Gov. Chao early today. In this Villa said that he expected to retake Gomez Palacio immediately and urged that a shipment of hand grenades, for which he wired yesterday, be hastened. This message, Gov. Chao said, showed that earlier reports of Villa's defeat had been exaggerated and that he expected to be fighting soon in the streets of Torreon. Gen. Villa is believed to be fighting for his life and the safety of his army north of Torreon after suffering a decisive defeat in his grand-assault on that city. -w Latest reports from the field state that the constitutionalist army has been cut in two; that the left wing commanded by. Gen. Benavide, has fbeen left entirely unsupported in its attack on the eastern fortifications of Torreon and that the federal cavalry under Gen. O. Carranza is threatening to cut to pieces Henavide's entire division. This is the day set here for a double celebration for a victory at Torreon and the arrival of Provisional President Carranza to set up his capital in Juarez. The plans forjlie dual jubilation were forgotten, however, in the alarm over Villa's predicament at Torreon. SNOW DELAYS TRAINS FARGO, N. D.. March 26. Seven inches of snow covered the entire state of North Dakota Wednesday. Snow fell all of Tuesday night and a large part' of. Wednesday and train Bervice was seriously impaired. '

n

of 100 Votes Are Majority Counted Hours of Debate

ence report on the urgent deficiency appropriation bill. This report being privileged, the rivers and harbors " budget had to be put aside. Partisans Are One. Partisans in the house who heretofore have opposed one another on practically every question, today were found fighting under the same banner. There was no dividing line between the parties as on the tariff or other administration policies. The opposition to the bill In the house includes Majority Leader Underwood. Minority Leader Mann. Progressive Leader Murdock, and Prospective Leader -Kitchen; Fitzgerald, oi New York. Doreraus. of Michigan, chairman of the Democratic congressional campaign committee; Moore, of Pennsylvania. O'Shaughnessy, Rhode Island, and all the Pacific coast representatives except Mr. Kent, of California. Leaders for Wilson. Chairman Adamson, of the Interstate commerce committee, and Representative.i Sims, of Tennessee, ranking Democrat, will lead the fight for repeal. They will be assisted by Stevens, of Minnesota, ranking Republican on the committee. Republicans for repeal include Gardner, of Massachusetts; Volstead and Lindbergh, of Minnesota; Hamilton, of Michigan; Esch. of Wisconsin, and Kent, or California. Democratic friends of the repeal bill include Palmer, of Pennsylvania; Sherley, of Kentucky: Covington, of Maryland; Henry, of Texas; Heflin. of Alabama: Barkley. of Kentucky, and Montague, of Virginia. Early skirmishes in the debate Indicate that the administration will have to meet the charge that the United States has adopted "a trucking JtTndiUtewMtilig,-,r,'v'-matie negotiations has yfeideS to Eng- . ' land's demand that this country surrender certain rights. The friends of President Wilson argue that not only are free tolls a violation of the Hay-Pauncefote treaty but that it is ship subsidy which has always been opposed by Democracy.

LEAVELL SUCCUMBS TO BULLET WOUND Colored Man Exonerated Wife From Blame in Scuffle Over Revolver Causing His Death. RELLER HEARS STORY Dying Man Sends Farewell Message to the Police Officials As the Final Hour Grows Near. A death-bed statement, asserting the innocence of his wife of any intention of shooting him. was made by Walker Ieavell, colored, shortly before his death early today at Reid Memorial hospital. The statement made to ! Prosecuting Attorney Reller. Chief of ' Police Goodwin and Patrolman Wenj ger, who were making an inquiry into i the cause of the gunshot wound which Mrs. Leavell inflicted. "Tell Mac and Scott good-bye, and tell them to pray for me." was "the last ; thing Leavell said to Driver Wenger, i referring to Desk Sergeants McNally and Winters. Leavell was shot through the bead by his wife in a scuffle between the two, which both said was friendly and without malice. The scuffle took place at Leaveli's home on the B. W. anei- ! fer farm, near Elkhorn. where leavell wag a tenant. The shooting happened on Friday, March 13. The prosecuting attorney talked with Leavell about the accident shortly after the injured man had been taken to the hosnital. and Iavell then told him his wife did not intend to shoot him. He said he tried to take a revolver which his wife held, and In pulling his arm toward him. caused her inadvertently to pull the trigger. The bullet was located after Iavell had died, when a post mortem examination revealed it. The direct cause of the death was a hemorrhage which started yesterday" and continued for twenty-four hours. The prosecuting attorney was called wben it was seen that Leavell could live only a few hours. He was almost too weak to speak, but denied that his wiJe twas guilty of maliciously causing his death, and even took the blame for the discharge f the revolver on himself. When Leavell seized his wife's arm. according to 1 their story, the revolver was pointed directly toward him. The bullet entered ' his head through the , upper lip and pierced tlu roof of bis mouth, lodging Just behind it. He rested easily until yesterday when tna hemorrhage started. .

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