The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-04-09
PROBING THE TRUST
GAS INvEsTIGATrNG COMMITTEE
HOLDS ANOTHER MEETING.
How the Stock of the Consumers
Company Is Gradually Gath
cred Up.


gas investigating committee, with the assoc
ciate committees from the Board of Trade
and the Commercial Club. met last even
ing at the Mayors Office and listened to
representatives of the Consumers Gas
Trust Company explain their affairs and tell
their reasons why meters should be adopt
ed for measuring natural gas. Bement Ly-
man, secretary of the company, was the
only witness sworn, but the other repre-
sentatives present were so interested in Mr..
Lyman's success that they frequently vol
unteered answers, so that at times three or
four were talking at once. The answers at
one time were confusing that Mr.. Allen
rather sarcastically suggested that all pres
eat be put under oath and allowed to testi-
fly at once. John P. Frenzel did most of the
talking, and he relieved Mr. Lyman from
answering questions every time that gentle
man stopped for moment to consider. Mr..
Frenzel made an earnest appeal for the
adoption of meters, and he said by their
use the cost of gas would be reduced, that
there would be saving of SO per cent. in
food from destruction by overhead. that
meters were not used, and that by their
use gas would be insured for many years to
come The members of the joint committee
did not see the situation exactly as stated
by MIR. Frenzel The meeting was a spirit
ca one; and It was marked by intimations
upon the part of the committee and many
answers from the representatives of the
company and frequent choice bon mots.
The testimony which impressed the COM
mittee as being the most important was
given by Mr.. Lyman, and was to the eff
feet that the trust began operations with
5,3C0 stockholders, and now has but 2,496,
and that the largest block of stock in the
beginning was $500, while now there is one
there are several who have considerable
sums invested. Mr.. Lyman was not pressed
bo,dars b bn names s OF tne prinelpai STOCK
marked that they would have to be given
before the committee adjourned or rea-
son would be demanded in the courts.
When Mr.. Lyman took the stand Mr..
Young wanted the witness to proceed with
any statements he had to make, but the
witness said he was there to answer ques-
tons. Mr.. Smiley Chambers then began to
make inquiries regarding the last financial
Trust Mr. Lyman said the company began
with an Indebtedness of 81 ,207, 900. OF this
altouho sGuzovo was IN the FORM OF certn-
holders. In January of 1898 there was in
Cured interest to the amount of $4,000,
for which certificates of Indebtedness were
issued to the certificate holders. Mr.. fFrenzel
undertook to explain why stock had been
issued for this indebtedness, for the matter
was not clear in the minds of the commit
tee. Mr.. Frenzel said the trustees had
thought it advisable to issue incurred inter-
per cent. to the stockholders in this issu-
ance. Mr.. Chambers said it looked to him
holders could receive interest upon their
interest, or compound interest Mr.. Fren-
eel denied that such was the case and ex-
planned that the stockholders had received
absolutely nothing, and it was thought
something was due them
Would not the income of the company
for the fiscal year 1888 have paid the inter-
est without causing the company the neces-
sity of issuing interest stock?' asked Mr..
lit would not answered Mr. Frenzel
We had the Broad Ripple mortgage to
meet, and the field expenses were heavy
Cir Lyman picked up a copy of the last
fiscal years report and began to explain
the different items. Mr.. Frenzel said it
was a hard thing to understand if
doing business He added that a majority
of the railroad statements published are
quainted with the business and familiar
with previous statements. Mr.. Chambers
cash balance of $4,000 on hand last Octo-
Der in connection with the companys
claim. Mr.. Lyman said the statement was
that it must be remembered that great
majority of that amount is invested earn
year there was but ss7, 900 on hand BY in
vested earnings, he explained, earnings
which n have been ra inve red NJ, von .tb.+
the, statements issued by the company are
misleading"
person but stops to consider them and COM
pare them with the statements of past
years.
If man makes $4,000 year" explained
Mr. Lyman, This earnings will show $4,000
although he may have invested $4,000 of
In their statement the company made al
lowance for depreciation of stock. which
does not appear. on its face. Mr.. Frenzel
explained that there had been a wonderful
depreciation. After Mr.. Frenzel and Mr.
Lyman had explained the finances of the
trust the committee began to ask ques-
tons of a more general nature.
Mr.. Lyman. in answer to questions. said
the ans s snSe a last un
drew $4,000 and SIS 900 went to meet the
Broad Ripple bonds. There was cash on
hands to the amount of $4,000 April l.
Neither Mr.. Lyman nor Mr. Frenzel would
state the field area of the company.
n skea ngs IF a5 as
you not pay out all stock in three years %
No SIR replied Mr.. Frenzel.
Whose company Is the trust" asked the
Perhaps some one else can tell that"
replied Mr.. Frenzel with disdain
Does your company think it's first OBJ
legations is to the stockholders rather than
to the consumers" asked Mr.. Young.
No, sir; no, sir; no, SIR answered Mr..
Mr.. Frenzel next set forth the benefits to
be obtained by the use of meters He said
1t would teach the poor people economy in
food. for now fully 80 per cent is lost in
food value by too much heat. He said gas
by meter measurement at 25 cents a thou
sand feet would be cheaper than at present
Judge Martindale Informed Mr.. FrenzeI
that he was mistaken.
According to your reasoning" began Mr.
Allen, IF a man used enough meters he
would get his gas for nothing
According TO your way of figuring he
might" replied Mr.. Frenzel. with some
show of anger. Mr.. Frenzel then told of a
few of the ways in which gas is wasted.
Mr.. Lyman had some figures which he in
troduced. Since Feb. /, 1893, instances have
been reported where gas was being stolen
from the company. by which is meant
places where gas is obtained without any
compensation being received by the COM
pany. The company has discovered LAC
bored out mixers. Mr.. FrenZel said this
amounted to great waste. Mr.. Allen
intimated that if the company sustained
the pressure required by ordinance there
would be need of boring out mixers.
DO you mean to say, Mr.. Allen, asked
Mr.. Frenzel, that the ordinance prescribes
the pressure?"
That is what / mean" answered the
committeeman
You are mistaken replied Mr. Frenzel
suppose L am, retorted Mr.. Allen.
There is nothing in the ordinance which
specifies what size hole there shall be in
the mixer" Mr.; Frenzel said the mixer
used is the standard, made by Cincinnati
firm. Mr.. Lyman said the company had
recently lost about eight hundred con-
sumers, and 1T now has 1900. He said
there was no agreement between the Trust
and the Indianapolis company regarding
what consumers should be taken on the
lines
do the stockholders have any voice re-
garding the affairs of the company asked
Judge Martindale.
They do not. replied Judge Lamb. The