New-York tribune., 1897-08-23
GAS FIGHT IN INDIANA.
WARNING COMBINATIONS OF CAPITAL.

WARNING COMBINATIONS Or CAfIlAL
STORY or THE DEVELOPMENT AND FINANcIER-
ING OF THE NATURAL GAS PROPERTIES
FORTUNES PILED Up
Indianapolis Aug % (SpeciaD.-The Indiana gas
field IL just the scene Of a pretty fight be-
tween opposing combinations Of capital The par
ticuar storm centres at present are Indianapolis
and Peru but the plan Of battle is comprehensive.
and involves all that part Of Indiana where natural
gas is sold for private consumption. When natural
gas was FIRST discovered In Indiana the Standard
OIL interests and the coterie Of capitalists known as
the Tricc syndicate prominent in its develop
ment. But II too uncertain a matter TOT hea'y
Investments and the great bulk of the work OF de-
veloping and piping the gas to the cities IN the
vicinity Of the field fell upon those who had under
taken TO do the work with popular subscriptions
The business proved enormously profitable ana II
buit ND a number Of considerable fortunes.
In 1880 f.. G. Benedict and his friends, com
monty known as "the Benedict crowd. the
"Jerzmanowski syndicate" and the Centrai
Trust clique turned their attention to natu-
raj gas They had been in artificial gas Tor
years. and their operations in New-York Conso'-
dated Gas Chicago Gas and Welsbach Light ana
other similar corporations are well known 10 'he
financial world. Like all conservative capi'ai's,s
they were afraid of natural gas. but thousn'
well worth while to try the experiment IN lnu'ah-
apos, where fuel gas pdiit "oui" P''"'
valuable even after the exhaustion OF natural gas
Tber tbev had a theory that a singe corporation
conducting the artificial and natural gas plants OF
CITY could practise certain economies ana man
money Their enemies now intimate 'ha' o'' VI
these economies is TO run natural gas throus' ''
rctorts and mix 1t with artificial gas at the piopo
on Of 70 per cent natural and 80 per cent ar'ihcia
and sell the product at the high price OF a'""0'a
gas If this were done 1t would be ehor"'ous''
nro6table for natural gas sells at 10 cents tHou-
sand and artificial at 81 %, but no evidence mas "
been adduccd that it was done
In indianapolis the artificial gas plant ana one oi
tho two natural gas plants were o"heu Pla'"
bv the same people An agent iron" NC" IN
purchased the two for s2,00O0Oo. Ii was said at e
, ,h, ,h. purchasers were the Jerzmanowski
s,rdicatc but Baron Jerzmanowski soon retired 10
thc background and C. f. Dieterlch CAME '" '"e
front as the head of the syndicate. Inc '"'"e ""
an experiment, and JerZmano"sK hau s''
rich 10 have his name connected win iau'.'
Uhuo y few dnancers have known that Benedc.,
,ho Earcusons and others of the Benedict cro"u
were the deal. the general pubic p 'a nn,oa,s
nohodv else in ii than the Dieterich sy""
When the deal first begun Dieteric" wa" ~
cani,alist Of any magnitude, but was sas eNp
who had long been in the employ OF '"e ~,
oon.e Thcv have done well by him durihs ..o
Iast ton wears and he has acquired co"s'u. ~
,,,., Tho Indian polls experiment worheu we'll
,ftor paving 100000 for the plant the specu''.o.'
bonded It for s2sjo00o, and let the JULIUS 90 %,
kers n, 90 with a bonus OF 800 STOCK WI" ''
bond The stock 100000, so that ,he S"'e W
al ,ho bonds with this bonus still lett the pro-
al NV , ,ocI N control The bonds went TO
,oto,ners AT 95 They thirty-yesr per ems
,rha interest ,as been promptly met ana 'he s'o'"
has Maid a dividend Of Il per cent is"' co. 20
rho nonds were issued in 1889 ana al "o" '
1892 and the syndicate was re"us "
operations in the Indiana he.d' ,s,,i ard
within the next three years the a''''0 - w
, -os ,lants in nearly all the larger to"nS
-, ,ho rorthern part OF the State were oous"' up
and the same policy followed at ihuia'apo''
nursued They paid liberal prices ioi '"e ,,A
,ies hut they loaded them still more heaN"S w., WV"
,,is and have always succeeued In get'ihs
It'll of IN. bonds Mr. Brice ana MS
were heavily interested in most OF these p.op p.
ns ,hought that they unloading thei" q"
tremendous figures. but when they sa" WIN ,
ease the new purchasers hoated thet DVn'S ,oo
got It into their heads that thtS Sn % ont What the
Sheon Mr. Brce very early iouhu ou. ho nnwcom-
cnn"p move meant and after allowing me ,hen,
nrs to make half their purchases vary TO com
hard on the properties that wee heoe' ~
However the Benedict people wf'r and Grrawiords
The plants at Lebanon frankIorr %a n iaken in and
M 10th artificial and natural. were tahe, ~ nv n
rsorSamiZefn f honds and 81 100000 stock In bonding
yhesc new properties they went Ii,tns ,rider ma
my & u II, ,hn nnrchase price Next the plants "a "a
! Ioqansport Peru and Decatur W. yy-hash valley
organized as tne , Sonds Of 81 5000 and stock OF
Ias 81 70 @ Mr Brice oermitged them Toni 10 puS Would
fperu Wabash and Decatur before ms as.h. hr nd
ietu t mnmt Iogansport and then. after tney @ mau
issued their notices o. the proposveu ivmned Al
tiU" the rate of 10000 day while the neso''"''o"s
were IN ,pey advanced upon Lafayette Here the
s,ork in the plants widely disriontsd ana !,
cest them about 10000 to gather doo M m a, bonds and
Wa0 ,o rno ~ stock Then came the last and ,arses.
Smrchase outside OF INDIANAPOLIS Ine n fOr' conso
were
dnted da With 81 cN Of bonds and s. 10000 OF stpcK baH
! some OF these properties nave P"t honds ha :
Others, ,rontIy nm met and the stocks have Yielded
from to u per cent Upon tnese prop''r5 s5 thev
co. issued s. coo 600 in bonds and ss2o0o in STOCK
They have oated the bonds getting sn " 50 1S 600 oGc in
BONUSES cleaning up proit oG St m ap9", "S bs STOCK
cash and still retaining over s9SV 0i '''
All this money making has excited SOM eii, h
and during the last year strong Hrities II is com
posed largely OF the people VINO sofa these pSnr, 80
to the syndicate The head ana @nst lT0ms OF the 1t sole
owner OF the gas properties here re anu an ml1 nS
brother are prsy,ate oo Sanhb aG ibv nave with them
Tho Frenzel group OF bankers. representing ah0her
large aggregation Of capital cites thev have
raised the cry OF cheaper gas with sucn eiect eis
oo1d' aod the Council passed ordinance reducing the
price OF artificial gas from 81 % thousanu 70 90 q
erai courts and obtained temporary Injunction
against the enforcement Of the ordinance by glVIns
.ban n0'' In peru the franchise is about TO expire
and they are holding public meetings 20 impress pr ,s
time the agitation is going on in al the other other
| cities and the bear campaign Is active, an dIons
sndeni sne rhf tba, the people should finally obtain
gas hr1usn Ssn mind. IT. hf bs natrs sas vii
ast hass "i% long time and they want to get back the
| properties
UI-VTJNC FOR com AND Soils