Richmond Palladium (Daily), Volume 40, Number 134, 19 May 1915 — Page 1

raci v fM YT ir 1 Palladium and Sun-Telegram KJL. AL, IN LI. Consolidated. 107 RICHMOND, INDn WEDNESDAY EVENING, MAY 19, 1915. SINGLE COPY. 2 CENTS IU1 UN.

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UTILITIES COMPISSIOrJ HOLDS CITY BOUND BY ACTION OF ITS COUNCIL Member of State Board States Action Taken by City Council and Officials in Purchase of Electric Plant of Richmond Light, Heat and Power Company Is Obligatory and Final If Bonded Indebtedness of City Prevents City from Purchasing Plant After the Commission Has Fixed the Price, the City Has Made Serious Blunder and Is Liable for Damages Says City Should Have Investigated Ability to Buy Before Acting.

HOLDS CITY IN OVERTURE ACTED IN GOOD FAITH Reasonable to Presume, Adds Commission Member, that City Was Acting Honestly When It Asked the State Board to Fix a Valuation for the Purchase of the Plant, and Since the Company Was Bound to Sell Under the Provision of the Utility Act, the City Consequently Is Bound to Buy Prominent Indianapolis Attorney Claims City Is in Embarrassing Position and Liable for Damages Because of the Injunction Suit It Filed.

"The public utilities commission considers the city of Richmond bound by the action of its council and the city officials in the

purchase of the property of the

company, and if the city on account of its bonded indebtedness is not in a position to purchase the electric light plant after the commit :ion has fixed the price, the city surely has made a serious blut-.der and will be liable for damages." This was the statement made by a member of the Indiana put'.ic utilities commission to a representative of The Palladium at inc. uiapolis yesterday.

City's Negotiations Final and Obligatory. The opinion of this member of the state commission shows tha. the negotiations of the city are final and obligatory. It also indi:ates that if the city cannot buy the plant because of its bonded indebtedness, then the city is liable for the damages accruing to the Richmond Light, Heat and Power company from this step of the city. This member of the commission went on to explain that it was only reasonable to presume that the city was acting in good faith when it asked the commission to fix a valuation for the purchase of the plant, and, since the company was bound to sell under the provisions of the utility act, the city of Richmond, by the act of its proper officials, is bound to buy. He insisted that if there was any doubt about the city not being able to purchase the property on account of its present indebtedness, it should have ascertained this before it acted. Indiana Expected to Follow Wisconsin Ruling. The Indiana commission has not ruled on this point, but the Wisconsin commission has ruled on the question, and since the Indiana law is almost identical with the Wisconsin law, it is only reasonable to suppose that the Indiana commission will follow the ruling of the Wisconsin body. A prominent Indianapolis attorney who was consulted on the question of the city's liability gave it as his opinion that the city was in a very embarrassing position ; and was liable for damages on account of the injunction suit which had been filed. He said he believed the city was bound by the action of the council.

CZAR'S ARMY CRUSHED; COMMANDERS LOSE JOBS

BY FRANCIS LAVELLE MURRAY. International News Service Staff Correspondent. PETROGRAD. May 19. Emperor Nicholas has gone to the front. His departure was followed by reports that important changes are to be made in the personnel of the Russian commanders. It is understood that the Czar is highly displeased with the result of the campaign in Galicia and in the Carpathians, where the Russians have lost a great part of the ground gained. Minister of War Sukhomlinhoff was summoned to confer with the Czar before he left. General Dimitrieff. the Bulgarian warrior, who became a hero WHITEWATER LODGE TO GIVE DEGREES Liberty Odd Fellows will bring a class of ten candidates for first degree to Richmond Friday. The initiatory degree will be given by Whitewater lodge. Saturday night members of the lodge will go, to Milton to confer first degree on a class there and to participate in the dedication services for the new Odd Fellows" building in Milton. Members of Oriental Kncampment will hold a fish fry Tuesday night in the Odd Fellows' rooms.

Richmond Light, Heat and Power

in Petrograd because of his early successes in Galicia, is said to be slated for removal. The latest official reports are received with the utmost pessimism by the Petrograd military critics. Some go so far as to say that the entire Russian offensive has crumbled and that superhuman efforts will be necessary to prevent complete disaster to Russian arms. The fact that these critics are permitted to speak so frankly is regarded as significant of a great upheaval among the commanding officers. Some of the rumors mention even Grand Duke Nicholas, commander-in-chief of the Russian armies. WILSON PRESIDES AT STATE SESSION Efforts of the Indiana Funeral Directors' association are responsible for the laws which safe-guarded the burial of the dead in Indiana, acording to Fol- ' ger P. Wilscn of this city, president of the organization, who delivered the address at the convention in Indianapolis. Mr. Wilson appointed committees to discharge the routine duties of the meeting.

Von Buelow Remains At Diplomatic Post

PANELS SHOW TRUE VALUE OF Y.M.G. A. The Industrial and Thrift exhibits opened today under the auspices of the Richmond Y. M. C. A. and will be held for today. The exhibit consists of panels showing the work of the association, its relation to the laboring men employed in industries and the value of saving money. Displays are in the lobby of the association building. There are ninety panels, eighteen by twenty-four inches which illustrate some of the problems of the human factor in industry and methods employed by the association in solving them. The Thrift exhibition is displayed in the windows of a Main street furniture store. "GREEN BOOK" PLACES BLAME ON AUSTRIANS Premier Salandra Justifies Every Move of Kingdom and Declares War Only Solution of Problem. AUSTRIA IS PREPARED National Dignity Permits No Further Concessions to Demands Made by Former Alliance Friend. NEW YORK, May 19. The Sun prints a Berlin dispatch stating its correspondent has learned that Ambassador Gerard has been asked to look after Italians in Germany. "This" the dispatch concludes, "foreshadows a declaration of war by Italy which it is expected will be made tomorrow morning." ITALIAN GREEN BOOK. ROME, May 19. Full responsibility for the approaching war with Austria is placed on the dual monarchy in the green book which Premier Salandra is getting out. It contains the diplomatic conversation which passed between the Austrian and German ambassadors and the Italian foreign office, and messages bearing on the international relations and foreign policy of Italy. Though every care was taken to keep the contents a secret it was learned today that the book contains justification for every move that Italy made. The Italian government contends that it was placed in a position where it had maintained its dignity at any cost and that demands which it made of Austria were based on right and justice. The green book Is also said to attack the course pursued by Austria, declaring that the dual monarchy had violated both the letter and spirit of the treaty of the Triple Alliance. BERLIN. May 19. "Austria has gone as far as national dignity will permit, it now lies with Italy to decide whether it shall be peace or war. We are prepared for either.' This was the statement by a high official of the German foreign office to the International News Service. It came from a man who knows the sentiment of the German government. LIBERTY BELL MAY COME. The Liberty Bell will not pass through Richmond enroute to San Francisco, but probably will be routed through here returning to Philadelphia, according to the routes given out by the mayor of Philadelphia.

RECONSTRUCT CABINET OF BRITISH GOVERNMENT

LONDON. May 19. The British government is bieng reconstructed. The official announcement was made in the house by Premier Asquith. The new cabinet will be formed on a broader personal and political basis and will represent a coalition ministry. However, the political crisis which has resulted from dissention between First Lord of the Admiralty Churchill and Baron Fisher, first sea lord of the admiralty, has not been passed. A revolt is threatened in the ranks of the Liberty party which is now in power. According to the Star a number of disgruntled Liberals and Radicals have decided to go over to the opposition when the new government comes into power. Dissatisfaction is expected in the ranks of the Irish Na-

ITALIAN ROADS TAKEN OVER BY MILITARY ARM German Ambassador Stays Until Parliament Meets and Declares War Against Former Germanic Allies. WAR FEVER INCREASES Austria Willing to Cede More Territory But Italians Spurn Offer for Participa tion in Fray. BULLETIN. PARIS, May 19 The French government is informed that diplomatic relations between Italy and the German allies will be severed tomorrow. A message by courier from the French embassy , at Rome states that when the parliament meets tomorrow Premier Salandra will present the green book giving the cause of the rupture and that Prince von Beulow and Baron von Machio will leave at once. BY BRIXTON O'ALLAIRE. International News. Service Staff Correspondent. ROME, May 19. Thomas Nelson Page, American ambassador to Italy, will take charge of the interests of Germany and Austria when Prince Von Buelow and Baron Von Macchio leave Rome. Arrangements to this end are said to have been ' made through the United States state department at, Washington. The departure of the German and Austrian ambassadors probably will not be long delayed. Communication with Thieste, the principal sea port of Austria was cut off today. Attaches of the two embassies have already left but Prince von Buelow informed correspondents today that Continued On Page Seven. TURKS DESTROY SUBMARINE IN DARDANELLES LONDON, May 19. Confirmation of a previous report that the Australian submarine A E-2 has been sunk in the Dardanelles operations was contained in a communication issued by the British admiralty today. The statement admits that the undersea craft had been sunk and the crew are prisoners in the hands of the Turks. ALLIES RECEIVE HELP. CONSTANTINOPLE, Via Berlin and Amsterdam, May 19. Heavy reinforcements have been landed on Gallipoli peninsula to aid the British troops. The war office was informed today that eleven transports had arrived in the gulf of Saros and that the troops they carried were landed under cover of the Anglo-French fleets fire. An official statement issued here today states that another of the warships bombarding the Dardanelles was hit by the Turkish batteries Tuesday. POSTPONE CASE. George Ross, colored, charged with taking possession of a bicycle without the permission of its owner, plead not guilty in city court today and the hearing of the case was set for tomorrow morning. & rMEEEJ Mr. Churchill, who is reported to have resigned as first lord of the admiralty is said by the Star to have been offered the post of secretary for India while the portfolio held by him is believed to have been offered to Baron Fisher who is known as the creator of England's modern navy. The premier stated that he and Sir Edward Grey, the secretary . of state for foreign affairs, would retain their posts irrespective of any other changes. "Absolutely no change is contemplated regarding the policy of the prosecution of the war. Any re-organization of the government would be for the war alone and should not be taken as an indication that we are surrendering any of our political ideas."

BANK CASHIER WAITS

CALMLY FOR OFFICER TERRE HAUTE, Ind., May 19 Ed ward J. King, former cashier of the Dugger State bank and alleged to be short $30,000 in his accounts, gave himself up to the prosecutor of Sullivan county, two miles south of Carlisle, last night. King was sitting in an automobile at the roadside waiting the arrival of the prosecutor, who had been summoned by Attorney Hammil of Terre Haute, who is acting as King's legal adviser. King was today arraigned at Sullivan and released on $500 bond. TEUTON PRESS GIVES ANSWER TO UJ. NOTE Vossische Zeitung Declares Berlin Will Demand English Ships Cease Sailing Under False Flag. OUTLINES CONDITIONS Germans Would Prohibit Arming Merchant Vessels and Carrying Contraband and American Citizens. BULLETIN.! BERLIN, May 19. Herr von Jagow foreign secretary, today submitted to Chancellor von Bethmann-Hollweg a preliminary draft of the German reply to the American note. The Chancellor suggested some changes and the revised draft will be presented to a council Thursday. The reply will probably be issued Friday unless developments change the government's plans. The evening newspapers in contrast with the morning papers, denounce the American attitude, urging the government to answer the note with firm defiance. BERLIN, May 19 Forecasting the reply to be made to the American note the semi-official Vossische Zeitung states today that Germany will make three important counter demands on the United States as follows: First That it shall insist upon British merchant vessels abandoning the use of false flags. Second That it shall insist upon England ceasing to arm merchant vessels. Third That it shall insist upon England refraining from carrying con- J traDana or war upon vessels wnicn have American passengers on board. "If America does this," the. Vossische Zeitung adds "America will find Germany on her side in the endeavor to lead submarine warfare into humane channels. If America fails to influence Great Britain America will have to put up with the submarine warfare." The Cologne Gazette says that the American note cannot be expected to sway the German government a hair's breath from the plan formed after mature deliberation while the Berlin Tageblatt says the submarine campaign will be continued as a matter of course. BELIEVES PICK BLOW RESULT OF ACCIDENT Struck in the head with the sharp end of a pick Nick Papas, a Greek, is at Reid hospital today in a dangerous condition. Whether the blow will result in Papas' death depends upon developments during the next two days. Papas was struck by another Greek, John Manekas, while they were working with a section gang on the C. & O. railroad a short distance from the north, end passenger station.. Manekas,. who is being held on a I charge of assault and battery, asserts that he struck Papas accidentally and the injured man does not beleive Manekas intentionally assaulted him, nor do other members of the section gang who have been question by the police. "I am inclined to believe Manekas' story that Papas' received the blow from the pick when Papas, who was working directly in front of Manekas, slipped and fell backwards." Chief Goodwin said today. "Manekas said that when Papas fell his pick was de .rt.nt its riPsrent in time to avoid striking Papas." When Papas was removed to the hospital he was partly paralyzed.

COMPANY LOSES $36,606 ON GAS AMD LIGHT PLANT DURING YEAR OF 1914 Light, Heat and Power Company Shows Startling Falling Off in Business Net Earnings on Light Plant in 1914 Re

duced from $20,139.72 to $11,001.51, While Gas Earnings Fall from $44,971.64 to $961.33 Loses Patronage Steadily in Electric Light Field, Showing that Municipal Plant Was Rapidly Getting Control of the Business Figures of Company at Indianapolis Themselves Show a Big Loss in Business at Local Plant

WHY SHOULD CITY ASSUME HEAVY BURDEN?

Company Formerly Used Big Profits of Gas Plant to Help Carry Load of Reduced Electric Light Business, but Enormous Reduction in Gas Revenues Under the New Rate Cuts Deeply into This Income, Putting the Concern Face to Face with Serious Problem City Now Steps in and Proposes to Relieve Competitor of an Irksome Burden Company Makes Good Bargain in Accepting City's Overture to Buy Losing Proposition.

The Richmond Light, Heat and Power company between January 1, 1914 and December 31, 1914, lost $36,606.26 on its gas and electric properties in Richmond. This siim included the interest on its funded debt but does not include anything for the stockholders, as no dividends were paid on either the common or preferred stock during these twelve months. This startling bit of information, hitherto unknown to the eity council and the taxpayers of Richmond, was obtained yesterday from the official figures filed by the Richmond Light, Heat and Powder company with the Indiana public utilities commission. Figures in the office of the public utilities commission show the net earnings on the light plant alone were reduced from 820,139.72 to $11,001.51, while the gas earnings were reduced from $44,971.64 to $961.33. Deficit for Year Amounts to $36,606.26. These two earnings on the gas and electric companies make a total of $11,962.84 to which must be added $846.90, which was'th"e non-operating receipts on both properties, making a grand total of $12,809.74. This last sum was the amount of money the company had to pay the interest of $49,416 on its funded and floating debt. The deficit then amounts to $36,606.26. This deficit does not include anything for the amortization fund, which the company is required to set aside each year to take care of its funded debt when it falls due. (The amortization fund is the sinking fund). Gas Property Carries Heavy Expense Load. In the report of the company to the commission, it charges only 25 per cent of the administration cost, which includes all salaries and office expenses, to the electric light plant. The remaining 75 per cent has been charged to the gas property. These figures, showing how the Richmond Light, Heat and Power company was losing business in the electric field, show conclusively that the municipal light plant was offering such stiff competition that the Richmond Light, Heat and Power company could not meet it. Naturally the question arises why the city should want to buy the opposition plant when, according to the figures of the Light, Heat and Power company, filed officially at Indianapolis, the city plant was rapidly getting business away from the competing plant. Company Loses Revenue and in Critical Condition. These figures show that the profits made by the gas plant enabled the Richmond Light, Heat and Power company to carry the heavy burden of the reduction in the earnings of the electric light plant up to last year. With the enormous reduction in the gas revenues and the heavy loss of electric light consumers to the city plant, the Richmond Light, Heat and Power company was face to face with a

critical situation when the city chase the eIectric lfeht Pnt

ihese ligures, moreover, raise the question why the city should now step in and take upon itself the task of relieving the Richmond Light, Heat and Power company of a burden which its own figures show was becoming so irksome that aggressive remedial measures to help it out were necessary.

ROUMANIA TO ATTACK AUSTRIA WITH ITALY BUCHAREST, May 19. Roumania's entrance into the war will follow that of Italy. The Roumania army is on a war footing and will strike Austria . through Transylvania. A ministerial council was held today at which the premier presented to his i colleagues the latest information received from the Roumanian envoy at Rome. It is understood that this was to the effect that. Italy's cabinet had decided for war. . .

offered to exercise its right to pur-

WeatherForecast FOR INDIANA Rain tonight and Thursday; warmer tonight. Temperature. Noon .......... 52 Yesterday. ' Maximum v 59 Minimum 35 General Conditions Western storm is causing rains and snows from the S5th meridian west to the Pacific coast and south of the Great Lakes. Killing frosts occurred yesterday lathe Dakotas and Minnesota.