Richmond Palladium (Daily), Volume 39, Number 117, 27 March 1914 — Page 1

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AND' SUN-TELEGRAM VOL. XXXIX.NO. 117 RICHMOND, IND FRIDAY EVENING, MARCH 27, 1914 SINGLE COPY 2 CENTS

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City Attorney Asks For Valuation On Basis of Actual Investmsnt Instead of Cost of Reproduction ABANDONS WISCONSIN PLAN

Bond Ignores Basis Fixed and Adopted Elsewhere in Fixing Valuations of Utilities. Assigns no reasons for Departure from Legal Precedent Used as Authority. Water Works Company's Attorneys, in Brief, Assail City Attorney's Views as Highly Affected by Progressive Party Tendencies and Theories.

If the basis for rate making advoVocated by City Attorney W. A. Bond In his brief on the Richmond City Water Works company case, just filed "with the Indiana public utilities commission, receives the indorsement of the commission, a new precedent for rate making in the United States will have been established. The precedent established by the Wisconsin public utilities commission of basing all rates of public service corporations on the cost of reproducing plants plus the "value of the going concern," has been followed in all other states which have public service commissioners. The Richmond city attorney now comes forward with the argument that the "cost of bringing a public service plant to present state of efficiency" should be the basis for rate making. Bond's New Theory, In his brief, City Attorney Bond determines this present state of efficiency by taking the original cost of the plant and adding to it all the improvements, making a reasonable allowance for appreciation on some of the items and deducting what he terms a reasonable amount for depreciation. He also claims that some items which are included in the original cost should be investigated by the commission to find out if they are reasonable expenditures in the establishing of the plant. The generally accepted method of establishing valuations for rate waking the value of the going concern, is declared to be unfair by Mr. Bond, primarily because "going value" is figured in. He defines "going value" as the capitalization of the "cost of re-producing a given income." He says it is perfectly fair to figure "going value" into plant valuation for the purpose of establishing a price for the sale of a plant, but to consider it a part of a rate making valuation is unjust to the patrons. Politics Put in Brief. Politics has been injected into the airing of the local water rate controversy before the state commission. Mr. Bond is the Progressive candidate for judge of the Wayne circuit court. The Indianapolis attorneys for the local water works company, James P. Goodrich, Henry C. Starr and John F. Robbins, are ardent Republicans, and in the brief they have just filed with the commission they assert Mr. Bond is bombarding the commission with "Bull Moose fallacies." In one part of the brief prepared by the local water works attorneys, the statement Is made: "There are some things that, under our constitution and laws, are not possible even to the insistent Progressives who claim that: " 'The heavens above and the earth beneath and the waters under the earth and the sea and all that in them is,' belong to the 'common people." " Regard Bond Lightly. In concluding the brief the water works attorneys assert they have no respect for the city attorney's opinion because it is "founded on nothing but the Bull Moose tendency to rise above the constitution and the law."

McDivitt Ousted From Jones J Hardware Co. Y. . Secretary Complies with Request of Chicago Bank, and George Hawekotte Returns To Accept Post. $9,000 Overdraft of Retiring Official Rankles with the Management and the Bank.

It was announced today that the directors of the Jones Hardware company had requested the resignation of Herbert McDivitt, secretary of the company and that the request had teen met. Mr. McDivitt frankly admitted he had turned in his resignation at the request of the board of directors. He said the overdrafts charged against him, said to total about $9,000, had been cared for properly by a transfer of stock of the company held by him-eelf-He has no plans for the future. "Mr. McDivitt's resignation is in line with the policy calling for a complete reorganization of the company's affairs and its management," said James Carr, chairman of the board of directors today. "Mr. McDivitt has been a capable efficial and the overdraft charges against him have been satisfactorily cared for. However, this overdrafting has rankled. Hawekotte Returns. "George Hawekotte, a former employe of the Jones Hardware company who has been employed by an Indianapolis concern ft - the last five years, has l;een offert-J and has accepted a

In his argument for using the actual cost for bringing the plant to its present state of efficiency as a basis for rate making, Mr. Bond says in his brief: "Actual cost means the cost of original construction plus cost of additions and betterments. Or, in other words, actual cbst means the number of dollars actually, wisely and judiciously expended by the utility in the original construction of its plant and in making necessary and proper additions and betterments thereto. And when, as in this case, we know definitely the actual number of dollars expended in building the plant as it now exists, or will exist about August 1, 1914, and in procuring its present business we have an exact measurement of all the value, measured by actual dollars, which the utility furnished in obtaining its present plant and its business. How to Reach Cost. "And if all the dollars so expended have been invested in property now actually used and useful for the convenience of the public, and in bringing the plant to its present state of efficiency, then, we Insist, these dol lars represent the actual cost, and ! when given the proper percentage of j depreciation caused by use, wear and I decay, we obtain definitely and posi-j tively the plant s present value. "Hence we earnestly insist that the present value of this plant as obtained by the present condition per cent of the actual cost thereof is the safest, fairest? -the- most"tittWrsitrethat it is possible to obtain. The company has parted with many dollars in building this plant and in obtaining its present business, and we know just how many, and this represents the value which it has contributed to the public convenience during the last thirty years, and if the company has parted with only this value then the public has received only this same value and the rate of return which the public should pay ought to be based only upon this value. Can't See Difference. "This would undoubtedly be taken as the basis for present rates if this plant were now just starting to fur nish its product to the public. And i if this method would be the proper one to apply in fixing rates for a new utility, why is it not the proper method to apply in fixing present rates for an old utility when, as in this case, the actual necessary cost is known? We are finable to perceive why different methods should be used in these two cases under the facts, and if the commission differs with us in this matter we, would be very glad to learn its reason therefor. "But as the company has -received the benefit arising from the -use of the money which it actually expended from time to time in plant construction and betterments by contributions from the public for services rendered it is eminently fair and proper that it should bear all the depreciation arising from use, wear and decay of the property which it devoted to the public use, as well as all losses arising from obsolescence or inadequacy of any property which arises from any cause." position of responsibility with our company. He will not b, secretary, but will have an active part in the management of the concern," It was announced sometime ago that a Chicago bank holding notes of the Jones Hardware company for a considerable sum of money which had been borrowed to operate the business, had demanded, when the request for a renewal of the paper held by the bank was made, a complete reorganization of the management of the company in return for extension of time on the notes. . Mr. Carr admitted today that the, request for Mr. McDivitt's resignation was, in part, in compliance with the Chicago bank's edict. "Will the resignations of any of the other officers of the company be requested?" Mr. Carr -was asked. "Not that I know of," he replied. The demand for the resignation of Mr. McDivitt is a sequel U the demand made by the directors a few weeks ago for the resignation of Sharon E. Jones, treasurer and general manager of the company, who bad overdrafts totaling ?27,O09 charge against him. J

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ii PLACE REPORTERS ON FIRING LINE! II Kill Off Newspaper Men Before Single American Dies in Mexican War, Declares Finly Gray. LAUDS W. J. BRYAN Believes in Pensions for Veterans, But Not in War Hopes to See Peace Tribunal. Congressman Finly Gray, who will be re-nominated at Cambridge City at the Democratic convention next Tuesday, has again gotten into the national spotlight. In a speech in the house recently he bombarded Secretary Bryan, world's champion peace advocate, with verbal bouquets, and then suggested that in event of war with Mexico every newspaper man be kept on the firing line until the entire breed had been exterminated. Mr. Gray's views were expressed during a debate on a bill to pension widows and children of Spanish-American war veterans. "In the course of events I may see fit to vote for war with Mexico on certain conditions," he said. "These conditions would be that the men who are asking for war shall organize a first company, their sons shall organize the second company, and the newspaper men who are striving to rush the country into war shall organize the third company. Loves Reporters. "When the charge on Mexico is to be made, when the army is to face the bayonets, I would place the men who are demanding war in the front ranks. When they fell down, I would have their sons fill up the breach, and when their sons were slaughtered, I would have the newspaper men fill the breach. And until the men who are calling for war, their sons and the newspaper men fell down, I would not allow a single American to lose his life or shed his blood on Mexican soil. Congratulates Country. " "I want to congratulate this country on this admlnist .cation. X tie foreign policy of the administration, and especially on our secretary of state, William J. Bryan, the duties of whose office are to maintain friendly relations with the powers of the world and to prevent war. By reason of his great influence and his superior ability, he has been able to accomplish more in that line with grape juice than other men have accomplished with cocktails and highballs. "Pensions are a part of the awful cost of war. They are appropriations that go to the weak, to the helpless, to the disabled, to orphans and to widows. I am opposed to war and hope soon to see the day when courts and tribunals will supplant force and might in a settlement of international disputes. But as long as war continues I will vote to relieve the victims of war by appropriations for pensions." EXACT FIGURES ON PARCELS POST ASKEI0ff OFFICE Exact rtatisticsof parcels post matter going through tbARlchtnond office will be taken during tfcev-month of April on orders from Postmaster Gen eral

Burleson. The purpose oT tiafcajOT,. an j s is to give the department somef4V TCT eiiger.

ports basis on which to figure the cost to the government of the parcel post system since the many recent changes have been inaugurated, including the increased weight and the removal of restrictions on certain classes of parcel and printed matter. The number of parcels weighing from one ounce to fifty pounds and the ; zone to which thev are sent is demand' ed. Figures must also be given as to the cost of delivery, the expense of clerk hire caused by parcel post and other expenses incident to the Bystem. "CLEAN UP" YARDS Commercial Club Committee Gets Busy. Arrangements for the anual yard cleaning: week will be made by the civic improvement committee of the Commercial club tonight. As it is the first meeting of the new committee, appointed recently, general work for the year will be discussed. John F. McCarthy is the chairman. Fire prevention day, the cleaning of alleys, care of trees and other matters pertaining to civic betterment will be discussed. No discussion of yard cleaning weeks plans have been held by the committee but the movement probably will be carried out as in ' former years. The first week in May has been suggested as the most suitable time for the cleaning up of the cttyGET HEAVY SENTENCES BOSTON, March 27. Glen Farmer, Samuel Rosenfield and James Clarke, alias "Powers the men accused of "de luxe book swindling," in which, they got thousands of dollars, were found guilty today and sentenced to terms in jail or prison by Superior Judge Chase. Clarke was sentenced to serve two years in the house of correction; Farmer three to five years and Rosenfield six to eight years in the state prison.

L T. BERTSGH WANTS PLACE ON TICKET FOR LEGISLATURE

Cambridge City Democrat Goes After Place of Crawford for Joint Representative. CRAWFORD DENIES ALLEGED WITHDRAWAL Legislator Fought Taggart Machine and Refuses to Bow Down Humbly to Will of Boss. CAMBRIDGE CITY, March 27. Lawrence T. Bertsch made announcement today of his candidacy for the office of joint representative of Wayne and Fayette counties on the Democratic ticket, following the reported refusal of Earl T. Crawford to consider running for the office again. Mr. Bertsch is a prominent business man in Cambridge City and is well known throughout the district. He attended Earlham college and was graduated from Indiana university. DENIAL BY CRAWFORD Was Willing to Accept Renomination if Voluntarily Offered Him. Mr. Crawford in a long distance telephone conversation today emphatically denied the statement that he had declined to make the race for renomination. Mr. Crawford is a violent anti-Tag-gart democrat and was constantly in revolt against machine rule at the last session of the legislature, so the launching of the Bertsch candidacy for the joint representative nomination is generally regarded in political circles as a "turn down" for Crawford. "My position on this matter has been that I would accept renomination on the Democratic ticket but would make no fightto land it Party leaders luasw ihymtuontfte question of Taggartism, and my record in the legislature and they knew I would be a candidate for the office of joint representative again if they desired to renominate me," said Mr. Crawford. Asked if he did not regard Mr. Bertsch's candidacy for joint representative as a "turn down" of himself, Mr. Crawford permitted his questioner to draw his own inferences by saying that he and Bertsch were good friends and Democratic party leaders knew he would not make the race against him. "It has been reported that you might join the Progressive party," Mr. Crawford was told. "I have nothing to say about that," he replied. POLICE ARREST COW ON TRESPASS CHARGE Marooned Animal Taken to Hose House by Thurman Thurnian, janitor at the city buldingf made his first arrest today. . j4lfapTive was a brindle cow. Bill Mas ably coached by Chauffeur Buck Winger, skipper of the police automobile, who sat in the "machine and superintended the job. Bossv is now in durance vile in the rear of the No. 5 he eJ house. Her owner is unknown. She made no attempt to resist arrest, accepting her' humiliation in a most stocial manner. Mrs. D. W. Dennis, West Seventh and Main streets, reported to police headquarters this morning that a strange cow had wandered into her front lawn and had sunk up to her knees in mud. She requested the cow's arrest. "We arrested a pig once and put it in jail and the newspaper boys gave us an awful roasting," Officer Wenger politely informed Mrs. Dennis. But stern duty must be performed despite the consequences, so Thurman and Wenger were detailed to arrest the stranded bovine. As a reward for duty well performed Mr. Wenger and his able assistant are spared tae embarrassment of a public "roast." WEATHER FORECAST FOR INDIANA Fair and colder tonight. Saturday cloudy. Probably rain and colder east portion. TEMPERATURE. Noon 57 Yesterday. Maximum ........ 67 Minimum . . . . . 41 ' W. E. MOORE'S FORECAST. . FOR RICHMOND. Rain probably turning to snow tonight or Saturday with falling temperature. SUMMARY. The storm is slowly moving eastward. Severe cold weather prevails in the northwest, the temperature Tanging from zero to 22 degrees below. . These conditions will cause cold disagreeable weather within the next 36 hours or more.

BROKE AND HUNGRY HOBO RETURNS $30 CHICAGO. March 27. John Saunders, broke, hungry, with no job and no prospects of getting one, walked past the entrance to the city hall. His foot kicked a small package. He picked it up and counted $30 in small bills. When John Saunders was only a few years old in Scotland his mother said to him: "Be honest, lad, for all the world knows no greater virtue." John Saunders entered the city hall, left the money In the treasurer's office to be returned to the owner if it was claimed. Then he went out and continued his fruitles search for a job. NEW AUTO GARAGE FOR Ml STREET William Dudley Foulke to Build Structure At 1115 Main Street. Excavation work for the construction of an automobile garage at 1115 Main street Is under way. William Dudley Foulke let the contract for the new structure recently, according to A. D. Gayle of the First National bank who represents Mr. Foulke. The Bricker Auto Station has leased the building. The structure will be two story brick, fireproof, with a 50 foot frontage on Main street. Its length will be 140 feet. The new garage will contain a modern equipment for storage and repairs of the cars. The Bricker Auto Station, which occupies a room at 418 Main street, has leased the building for a number of years. The Bricker company will retain the same agencies and possibly will enlarge its selling forces. The moving of the equipment will take place about the first of June. Embodies New Ideas. The new garage will embody the latest ideas for the handling of storage and repair cars. A turn table will be installed in the washing room. The floor of the structure will be of concrete with supply storage rooms in the basement and second floors. The roof will be dotted with skylights which will give the repair workers in the pits plenty natural light. Special electrical indirect lighting will be installed in the display rooms. Flan are in the hands of the MillerKemper company. LOCAL POLICE WILL APPEAR FOR STATE Officers Go to Newcastle As Witnesses Against a Highway Robber. NEWCASTLE, Ind., March 27. Robert Bass, colored, a former resident of Richmond was placed on trial in the circuit court today on a charge of robbery. It is charged that early in the morning of February 8 he entered the cafe of the hotel Dengler, this city aud at the point of a revolver relieved foui guests of about $25. Bass, some time ago figured in an arson esse at New Paris, O., and is said to have a bad record. Three witnesses for the state against Bass will be former police chief I, A. Gormon, Sergeant McNally and Patrolman Westenberg. aU of Richmond, who arrived here today. WAY IS RECONCILED . r Withdraws Affidavit Against Matt Schell. Echoes of the trouble arising over the fight at the "body" Twenty-fifth p-vcincr election day ceased when the affidavit charging Matt Schell, a bartender, with provoke to Charles Way, a laborer, was dismissed in police court today. Way, the prosecuting witness, went to the home of Prosecutor Reller last evening and asked that the affidavit be withdrawn. Schell and Way got into a mix-up at the Twenty-fifth precinct disputing over merely a trifle, of whether or not Way was a drinking man. Way claimed he had not touched a drop for four years. Schell told him that he had given him a drink only the Saturday night before election. Words followed and the two men came to ; blows. Wednesday morning Way pleaded guilty to a charge of assault and battery and pid the $1 and costs fine. FINDS 0LD MEDAL County Superintendent Unearths Silver Token. A large bronze medal awarded Wayne county schools at the World's Fair in Chicago In 1893, was unearthed today in the office of the county superintendent when the new office furniture was installed. 4 The medal signifies that Wayne county had the best school exhibit in the Indiana section and was the highest honor given any county in the state. It is still in the silver case in which it was given. The exhibit remains intact iu the superintendent's office as it was shown at the fair. There are 'also many manuscripts which were on display.

City Administration Asks Advisory Board of Citizens to Consult on Civic Problems Demanding Solution FULFILLS ELECTION PLEDGE - Commercial Club, South and West Side Improvement Associations and Federation of Women's Clubs To Be Represented on Commission, Mayor and Board of Works Wants Close Co-operation of Taxpayers in Advancing and Conserving the Best Interests of Municipality. Bavis Pleads for Rule of the People.

The first step in the fulfillment of one of Mayor Robbins' pre-election pledges was taken last evening wnen plans were adopted for an advisory board to the mayor, composed of representatives from the Commercial club, West Side Improvement association, South Side Improvement association and the Federation of Women's clubs. A meeting to perfect the organization of the board will be held April 8. As explained by Alfred Bavis, president of the board of works, the meeting was the first effort toward carrying out a campaign pledge. Mr. Bavis said that the board would act in an advisory capacity assisting the city officials in perplexing problems of interest to all taxpayers, which now confront the board. Three members of each of the named organizations will compose the new body. Praises Administration. George E. Seidel, president of the Commercial club, who presided at the meeting, said he could not recall any previous city administration that felt it should take the citizens into its confidence and expressed himself in favor of such a move. Mr. Bavis said, "We can't inject too much democracy into the business of running our city. The public officials are the servants of the people who are the board of directors in this corporation which we call our city. But the citizens need to remember that the office-holders are fallible and, like aimunaans, certain at times to make mistakes. "We don't want the impression to get abroad that we are unequal to the load and are trying to step out from under our responsibilities, but we do want a closer co-operation between the administration and the citizenship. We are actuated by a desire to get next to the people to the end that we might establish a kind of civic social center where we cap borrow each other's brains." Better Street Lights. Mr. Bavis emphasized the Importance of the question of street illumination. He said they hoped to save each year on the new Bystem they are expecting to install at least 92.184. The new lamps, he explained, would cast their light forty-seven feet farther away than the old and still consume only two-thirds as much energy. The project is also under way for extending the street car lines down South Eighth street and also toward Morton lake. "I hope that in 1916." Mr. Bavis continued, the taxes might be reduced

Toll Repeal Bill Foes Make War on Gag Rule Wilson's Friends Select Hardwick of Georgia to Answer Speaker Clark's Accusation of Debate Throttling Adamson Defends President's Position in Conference, While Friends Advance Bill.

WASHINGTON, March 27. The final vote on ordering the previous question was 207 to 176. This is an initial victory for the repeal bill. Speaker Clark was the last member to vote and was accorded another demonstration when he answered "No." The adoption of the rule carried 200 to 172. WASHINGTON. March 27 A decision to fight instead of surrender to the demands for more time to discuss the Panama canal tolls repeal bill was reached at a secret conference of prorepeal house members held in the office of Representative Adamson, of Georgia, shortly before noon today. It was decided also that one of the participants in the conference, probably Representative Hardwick. of Georgia, should attack Speaker Clark in a speech on the floor of the house later in the day. This is to be a reply to the speaker's statement protesting against the rule to force through the repeal bill. The conference determined to limit debate to twenty hours, as proposed In the original rule, and that no concession whatever shall be made to Speaker Clark, Majority Leader Underwood, Minority Leader Mann, Progressive Leader Murdock and other members who are fighting for lengthy discussion of the bill. The plan to fight was mapped out by Chairman Henry, of the rules committee; Chairman Adamson, of the Interstate Commerce Commission, and the members who are supporting the repeal bill Representatives Palmer, of Pennsylvania. Foster, of Illinois, Sherley. of, Kentucky, Hay. of Virginia, Sims, of Tennessee, Congalton,

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seven cents. This could be done partly through the use of the municipal light plant surplus. I believe the light plant should pay taxes to the city, just as any other public utility." The water rate schedule, the street department, board of health, the shade tree problem, the play-ground problem, lower taxes and street oiling were other questions which speakers held should be discussed in public meetings. Budget Broached. After remarking that later in the season the question of making up the budget for the coming year might be profitably discussed in an open meeting, Mr. Bavis suggested that Chairman Seidel ask for the opinion of those present on the project of an advisory board and of popular discussions of these things. Dr. E. B. Grosvenor. representing the West Side Improvement association, said he was heartily in sympathy witk the effort, as did also Prof. Helronimus. Anton Stolle, a delegate from the South Side Improvement association, said that in some ways the project j was a good one. but that in other ways he did not know how ft might work out. Perry Freeman, representing the South Side Improvement association, said he was pleased with the plan. After relating experiences of his own while mayor of Richmond in earlier days, he said. "I am in a position personally to know what the administration is up against.. This step shows that the city at large is growing wiser. I fought the Propressive ticket on political grounds but I am for it heartj ily now. Anything I can do personal ty i snouia oe giad to do. l admire them very much for taking the public into their confidence. The sooner we can eliminate national politics from our municipal affairs, the better I will like it." Jordan Enthusiastic. Charles W. Jordan, secretary of the club, said he had been able to get I cioser to ine present administration t than to any of its predecessors. He said he has seen no evidence that ,they are showing any disposition whatever to build up a political maJ chine. "This plan to have popular disj cussions of important problems is a splendid Idea and an advance toward : real popular government." Three members Commercial club, the two ImproTMVMt associations and the Federation of Women's clubs, in conjunction with the city officials, will make plans for open publie meetings where the problems of city government will be discussed. of Maryland, Hardwick. of Georgia, and Stephens, of New Hampshire. After the conference Representative Hardwick said: "We are going to fight and we will beat them. There is to be no change in the rules." Interest in the party crisis was reflected in the tense faces of all the members on the floor of the house and the spectators in the gallery who whispered to each other as they pointed to Underwood. Speaker Clark. Adamson, Henry, Mann, Murdock and other notable speakers In the drama. Representative Adamson opened the debate with a direct attack on Speaker Clark. "For nine years." he said, "a lobby has resounded throughout congress and the country in favor of free tolls. This is the first .rule ever asked for by the Interstate' Commerce committee since I have been connected with it. "We are willing to have the truth known for there has been a lobby against us for nine years and if the truth is known this repeal bill mill carry. We de not want any amendment to the bill because none is needed." Loud cries of "Oh" came from all parts of the chamber following this statement. Representative Gardner, of Massachusetts, Republican, declared: "I appeal to every man in this body who wishes to pass the repeal bill to vote for the previous question on this rule." Representative McDonald, of Michigan, a Progressive, opposed both the ri and the repeal bill." & (Continued on Page Seen.)