The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-02-22

gas while as g. matter of fact as evil
considerable amount of water gas, which
costs less than coal gas.
Conditions in other cities are referred to
where cheaper gas wars have been waged.
This paragraph is prefaced by the state
ment that nearly all gas engineers and ex-
perts who are in positions to know the cost
of manufacturing gas are in the employ
or the gas syndicates, and 1t is hard to get
at the facts. Cleveland passed an ordinance
fixing the rate for gas at 50 cents and re-
CURED the companies to pay is cents a
thousand feet manufactured into the city
treasury. one company, which manufac-
lures and distributes about the same
amount of gas as is consumed in Indian
apolis meets these conditions and pays divi-
ldends on stock The conditions in Cleve-
land are about the same as in indianapolis.
In Hamilton, o.. the gas plant is owned by
the city and gas is produced and distri-
6uted at 81 cents thousand feet in one
nfth the quantity used in this city
Without a word of explanation Mr..
kerns answer waves aside all the water
and surplusages in the capitalization of
the Indianapolis Gas Company and esti-
mates the plant to be worth 100000 He
then figures that IS cents thousand would
pay about 3 per cent. on the investment.
1t is considered that millions of dollars are
anxiously seeking investment in even less
secure enterprises at from 3ia to AZ per
cent. He concludes as follows:
And this defendant answering the ale
cation in said bill touching the. ordinance
of said city, fixing the price of Illuminating
gas at IS cents per thousand feet, and the
manner Of the passage of the same, says
that it admits the adoption and passage of
said ordinance and it's approval by the
mayor of said city, as charged in the said
bill, and it also admits that no hearing
was given to the plaintiff, as to the reason
ableness of such rates, or as to its rights,
but it denies the allegation that no inquiry
or investigation was made by said Common
Council or any one in its behalf as to the
tributing and supplying artificial gas to said
city or its Inhabitants, or as to the value
of the plaintiffs property used in said bust
ness, or as to the income the plaintiff was
deriving from the sale of artificial gas to
said city and inhabitants at the rate of
S1.25 per thousand feet or which it would
per thousand cubic feet prescribed in said
ordinance and also denies the allegation
without anv innIIjrv into and uttaylv in dis
regard of PLAINTIFFS rights
Low COST IN OTHER CITIES.
1.-THE defendant says, on the contrary that
said Common Council and it's several mem
bers have investigated the question as to
the cost of manufacturing Illuminating gas
in said city and elsewhere, in other cities
throughout the United States; that by said
investigation it had come to the knowledge
of the members of said Council that by
reason of the fact that the amount realized
by plaintiff from the sale of it's residual
products substantially equaled the amount
expended by it for coal and other fuel and
naphtha and other enriching material, the
only items entering into the cost of gas in
said city were labor salaries, taxes and re-
pairs; that they learned that in other cities
OF the United States, where the cost of
labor was the same or more than in the city
of Indianapolis and where other conditions
able for the cheap manufacture of gas than
IN said city, Illuminating gas of as good or
better quality than that furnished by plain
tiff was being manufactured and furnished
to the citizens of such city at profit to
the manufacturers, at sum per thousand
cubic feet not in excess of 70 cents; that
that at the rate at present charged by said
plaintiff 1t had made and was making enor-
nous profits; that 1t had issued stock to
paying out of its profits ~ per cent. divi-
dends annually, and also paying interest on
S2'690OOO of bonds OUT of such profits; the
said stock was almost entirely water, the
owners Of said company having reimbursed
themselves for all the money paid out on
FRANCHISES, good will and bonds, out of the
sale sof the issue of bonds aforesaid; that
they had also learned that these enormous
profit dividends on watered stock and inter-
est was realized because and out of the UNI
reasonable rate of $1.25 thousand cubic
feet for Illuminating gas which had been
that by reason of recent inventions and i'm
provements the cost Of manufacturing and
distributing illuminating gas had been ma
rate of SIPS thousand cubic feet had been
fixed and established and that it had been
demonstrated by the actual experiment Of
municipal ownership in cities of this coun-
try and Europe, that said last-named rate
was exorbitant and extortionate.
And the defendant admits the allegations
in the said bill that it is insisting and will
insist that the ordinance of said defendant
fixing the rate to be charged for illumi-
mating gas at 70 cents per thousand cubic
feet is valid ordinance, and that it will,
unless restrained by judicial authority en-
force the same by means of prosecutions
and such other remedies as are therein pro-
violates any provision Of the Constitution
of the. United States. or that of the State
the contractual or other rights of said
plaintiff under either Of such constitutions,
or any law"