The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-07-26
THE GAS MAIN TAX
THE COMPANIES REPRESENTATIVE
BEFORE THE COMMITTEE.
Their Arguments Against Taxing the
ty-Street Asphalt Contracts Let.

The finance committee of the Council,
last night, heard the pleas of number OF
persons interested in gas mains in the city,
among them John r. Frenzel and Judge
Lamb for the Consumers company and w.
l.. Taylor for the Indianapolis Natural Gas
Company. AS the Council does not meet
next Monday night, the committee took no
action in regard to a report and will prob
ably call another conference for next
Wednesday night, at which the matter will
be further considered.
The efforts of those who appeared before
the committee seemed to be in the direction
of showing that the gas wells are fail
ing, and that gas properties are thus de-
teriorating in value. Mr.. Frenzel, for the
Trust, claimed that tax of cents a foot
on it's mains, which would amount to $751;,
900 year, would keep it from repaying the
amount of the stock to the stockholders
and thereby practically bankrupt it, In his
argument he stated that the company mad
been unable. until the last year. to even
pay the interest on its stock, but was now
able to hold its head above the water. He
showed that the company had received
from it's stockholders $605, 267.55. Shortly
after beginning operation it floated $4,000
of five-year certificates, which was, prac-
tically, a loan to that extent The Broad
Ripple company was then bought out for
$l35, 900, of which amount $4,000 is yet 10 be
paid. Besides all this which put INTO
the plant, $696,000 of the companys earn
ings have been invested in pipe lines, max
ing the Trusts total investment s., OBS, 267.55.
y stock dividend was issued in
January, 1898, TO pay the accrued inter-
est and since that time interest at the rate
Of per cent. has been paid regularly, be-
sides payment of 10 per cent on the stock
account At this time the entire amount
of stock outstanding, after deducting the ~
per cent which has been paid on it, is $780,,
1910 which, added TO $4,000 of bonds on
the Broad Ripple purchase and $1,000 net
liabilities which its statement shows. makes
the trusts total liabilities 1858, 79l 40 This
is the actual condition of the companys
affairs as shown by Mr.. Frenzel last night
With plant which cost over 2,oOO,OO0,
and allowing ~ per cent. a year for de-
crease in value, is now worth over $780,
OOO the company'S assets are nearly double
the amount of its liabilities. In five years
the company has not only paid out more
than the total amount of its stock in inn
provements, but has paid off an amount
OF certificates. which were practically the
same stock, lacking only $1,000 of the
amount OF the original issue of stock. This
is the condition of the Trust company as
given by Mr.. Frenzel, but, on the other
hand, he stated that within two years il
would be necessary for the company To
erect pumping stations along its lines at
a cost of over 100000. besides making nu-
merous extensions into the gas fields.
On the subject of profits of the gas COM
panieS he stated that at the present time
there is not single natural-gas company
whose stock will sell in the market at par
on account of the extreme uncertainty of
the investment In regard to the recent
sale of the Lafayette gas plants, for which
a high price was paid. both for the natural
and artificial plants. he said the purchasers
wanted to secure the artificial plant, and
were compelled TO take it incumbered with
the natural-gas plant or not at all. He
then gave detailed account of the organl-
cation OF the Trust company, showing that
1T was not the expectation of the stock
holders to ever realize anything more than
per cent. on their investment and the re-
turn of their money after few years. The
company cannot then, under its charter
charge more than actual cost for gas
The arguments of the other speakers were
on the same line as this except that Judge
Lamb made plea for the Trust company
on the ground that 1t had been organized
at a time when other companies were en-,
deavoring to secure exclusive franchises
at much higher rates than the Councl>
thought just, and on that account had
benefited the public many millions of dol
N q in he of fTa