The times. [volume] (Richmond, Va.) 1890-1903, 1898-03-15
TUESDAY. MARCH 10, 1s9s.
Az INTERESTING EXPERIMENT.

An experiment has been made al IN
dianapolis which is worthy of the atten-
ton Of students OF municipal problems.
About ten years ago a company was or
eanized to develop natural gas in the
vicinity of that city and to deliver 1t to
consumers at price agreed upon be-
tween the company and the City Coun-
Gil The pipe lines were finally completed
70 the city limits when the public was
notified by the company that no further
work would be done unless the ordnance
rates were doubled.
10 There was great Indignation through
out tho city and public meetings were
held. but nothing practicable was done
and it appeared at one time as if the city
would be compelled to submit to the ex-
orbitant demands of the company.
In the nick OF time. however, Alfred S.
potts. lawyer Of Indianapolis. devised
a plan which was afterwards formulated
in the articles OF association Of the
Consumers Gas Trust Company Ills
plan was bitterly fought by the old COM
many and its agents. but finally material
lized and was put into successful opera
ton.
The plan was nothing more nor less
than the organization of company made
up of stockholders from all classes Of
citizens. and after the company was or
ganized. il was so largely represented
throughout the city that the Council did
not dare interfere with its plans. Tho
company has now over 325 miles Of pipe
i,ne in the field drawing from 20 active
wells. and has paid itself almost entirely
out OF debt.
In considering the plan Of organization,
says the correspondent who tells this in
teresting story. the object to be accom-
pllshed was to secure the benefit to the
people Of this natural product in such
way that it could not be monopolizcG and
yet to keep the organization free from
political control. with the evils which
would result 10 municipal government by
adding to the long list Of offices IN the
control of the party seeking 10 gain or 20
hold power. The plan was as follows:
First-The creation Of a self-perpetuat-
ing board OF trustees who held no stock
in any other company. in case o. n va
cancy by death or resignation th2 Va
cancy is filed by the survivors. Tho 1--WE
men selected for this purpose were Albert
G. Porter John N. Butler Thomas y.
Morris. John W. Murphy ana Henry
schnun. representative and puolic-sDirit-
ed men in whom the public had conf
dence.
second-To these trustees all stock vas
transferred in trust with an irrevocablc
power to vote the same FOR directors by
this provision the holders of stock have
no power TO elect directors so that should
all the stock be purchased by one person
ne would have no control Of the COM
pany. lie could not elect single divec-
tor.
Third--As soon as the holders of stock
have received the face value thereof y ion
per cent. interest, gas mus; be furnished
at cost. This provision insurcs the ulti-
mate contamination of the plan. absolute
eesvice at cost. There can be no water
ing OF the stock. no manipulation or llc-
titious issue OF capital. IT accomplishes
the result OF municipal ownership. The
investors having gotten back the fun
amount invested with per cent. interest.
the profit from that time CUES to the pub
Tic In the reduced price OF the service.
The investors are suli the nominal hold
ers OF the stock. but are entitled 20 no
dividends. The interest paid during this
period has remained at home Other
provisions direct the manner in which
any trustee may be removed upon appli-
cation TO the Circuit Court, for any con-
duet which the court may deem dctrimen-
tai to the interests OF the company.
Al recent meeting OF the Commercial
Club Mr.. Potts in a speech enlarged upon
the original scheme which he had pro-
moted and urged It's adoption as means
OF solving tho pfoelem as 20 practical
municipal ownership OF those enterprises
OF the city which are known as monopo-
lies and which use the streets Of the city