The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-01-25
A TRUST COMPANY SUES
RECEIVER ASKED FOR A "DTETER-
ICH SYNDICATE COMPANY.
Action Grows ont of Peru Gas Litiga-
tion-Defendants in News Case
File Appeal Bond.

Attorneys Ayres & Jones, for the Amer
lean Bonding and Trust Company, Of Balti-
more. filed in the Federal Court yesterday
an application for receiver for the Logans-
pert and Wabash Valley Gas Company
commonly known as the "Dieterich syndi-
cate" which also controls the indianapolis
Gas Company and many other gas plants
over the country. The object of the trust
company's suit, the bill relates, is to make
itself secure in the matter of its being liable
for bond filed for the gas company IN the
latter's suit for an injunction to restrain the
city of Peru from decreasing the natural
gas rates. This litigation has been carried
to the United States Supreme Court. The
failing of the natural gas supply plays a
large part in the trust companys action
against the gas company, and the bill also
makes allegations regarding the gas syndi-
Gates financial policy.
1t will be remembered that the city of
Peru, year ago, passed an ordinance re-
ducing the rates to be paid for natural gas,
and at the time charges against various
members of the Council who voted against
the measure were rife and created sensa-
tion. Public mass meetings were held and
the sentiment Of the people of Peru ran
high. The gas company filed application for
injunction and the United States @District
Court granted a temporary restraining or
der against the enforcement of the ordi-
nance. The District Court refused to grant
permanent injunction, and the Dieterich
syndicate appealed to the United States Su-
preme Court. where the matter is now
awaiting decision. The Baltimore Trust
Company, it is said, refused to become the
syndicates surety for the appeal bond, and
the American Surety Company, of New
York, took the contract. The Baltimore
Trust Company is surety for the original
Injunction bond, filed to secure the city of
Peru in case the syndicate's suit failed. for
the difference in the gas rates charged by
the gas company and the decreased rates set
by the ordinance. That is, If the gas COM
pany failed in it's fight against the city it
would be legally forced to return to the
city the amount of the difference in rates
paid during the time the restraining order
taken. This amount is about $4,000 and
the trust company is liable for 1t II the gas
company fails to pay it,
The trust company's bill for receiver al
legeS that the capital stock of the gas COM
pany is $1750,O00, invested in the plants of
the company and constitutes mortgage
held by the stockholders against the COM
pany There is now an accumulation OF
directors are preparing to distribute it in
dividends to the stockholders, and,
furthermore, the supply of natural
gas is weakening so rapidly that
company as well as the value of the plants.
is constantly decreasing. A demand of the
trust company that the gas syndicate de-
post with it $4,000 as indemnity was re-
fused the bill alleges, and the trust com
pany asks that a receiver be appointed to
prevent the distribution of the accumula-
ton of profits and secure the trust company
from danger of losing $4,000