The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-08-15
ALLEGED FALSE CLAIM
ATTORNEY CURTIS CHARGES GA.
COMPANY WITH DUPLICITY.
Attorney Winter Taken by Surprise
in the Argument Before Judge
Baker at Goshen.

Special to the Indianapolis Journal
GOSHEN, Ind, Aug. 14-Judge John H.
Baker, of the Federal Court, in chambers
here to-day heard argument in the injunc-
tion proceeding to restrain the city of In
dianapolis from enforcing the 75-cent gas
ordinance. Attorney Ferd Winter appeared
for the gas company and City Attorney
Curtis represented Indianapolis. The de-
tailed petition of the gas company cover
ing twenty-five typewriter pages, was
read by Mr.. Winter, also affidavits by about
all the officers of the company to the effect
that the cost of manufacturing gas is 6S.4
cents, and that the rate fixed by the ordi-
nance does not allow the company sufficient
margin to pay interest on investment. Three
reasons were given for asking the injunc-
tion: The city is charged with an attempt
to deprive the company of it's property by
compelling 1t to sell gas at price not
sufficient to pay interest; with violating the
contract right by ordinance, and with ex-
ceeding its power without concurrent ac-
tlon of the Board of Public Works. The
first reason only was argued.
Attorney Curtis, for the city, argued that
the itemized statements as to expenses
and other items furnished by the company s
bill We're incorrect, taking them up in de-
statement that the company did not have
due notice of the intended passage of the
ordinance by introducing an affidavit OF the
chairman of the Council committee stating
that the company had agents present, and
that an adjournment was taken at their re-
quest. Judge Baker took the matter under
advsement and will not render a decision
before Monday.
Mr.. Curtis's first move was the filing of
the motion in behalf of the city of Indian
apolis to dismiss the cause In beginning
his argument Mr. Winter said that the or
dinance passed by the common council
amounted practically to confScation of the
gas companys property without due
process of law. He held that the company
Should not be asked to sell the people OF
Tn6iananolis gas at price that would not
give the company a fair return on its in
vestment. He said the owners We're enti-
tied TO a reasonable compensation on the
present cost of the gas plant Its cost at
this time was 81, 100000. and 1t could not be
replaced for less than that sum A regu-
lation that did not allow usual rate OF in
terest was not a reasonable compensation.
He said the gross revenue by the I0-cent
ordinance would be only $l4%5n4 on the
expense Mr.. Winter SAID, was $lS6,SS1.53,
leaving d surplus of $22 6S4, or about l per
sisted that the return TO the company
should be at least $4,000 year, or at least
the legal rate Of interests per cent
City Attorney Curtis began talking at
9 o'clock and cited a number of authorities
to show that the Council had right to
pass an ordinance TO regulate the rates for
gas Notwithstanding that there had been
a previous ordinance liking rate, The
LEGISLATURE had a right to give to the
Council the power 10 make rates for the
gas company. The Rushvile Gas Company
lad recf wed the naked right TO go into
RushyilIe and operate plant after il had
made contracts with the citizens to sup
ply gas amounting to $4,000. Some of these
contracts had been for three years. Then
the Council had passed an ordinance fixing
the price at which the company should
sell its gas. The Supreme Court had up
held the Council
There was a small sensation when Mr.
Curtis proposed to file an affidavit of the
vice president of the Council. Mr.. Golfer,
showing that statement that the company