The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-06-09
GAS FRANCHISE VALUE
A. VI. FLETCHER WILLING TO PAY
OVER 100000 AT CINCINNATI.
His Interesting Testimony There as
to Gas Affairs in In
dianapolis.

City Affairs. He has offered from 100000
to 81. 10000 for the franchise which is soon
to be awarded. Mr.. Fletcher has been
witness against the Dieterichs, who are
making fight for the franchise The big
syndicate offers nothing for the franchise,
and its attorneys scoffed at Mr.. Fletcher's
testimony. They found him immovable,
however. The spirit in Cincinnati is against
the Dietericns syndicate. The ordinance re-
Gently passed by the Council providing for
new franchise offers both the natural and
artificial gas privileges. The contention of
the home company is that the natural gas
feature Of the franchise is worthless, and
this opinion Mr.. Fletcher corroborated.
The gas would have to be pped 10 miles,
and the field is failing. Mr. Fletcher's state
ments as TO the financial methods of the
Dieterichs syndicate have created a sensa-
ton in Cincinnati. His testimony. in part,
before the Board of City Affairs was as
follows:
II live at Indianapolis. I was connected
with gas interests there from clerk TO pres
ident for sixteen years. Was connected with
three companies one supplying natural.
another artificial, and the third the same.
A syndicate composed of Mr.. Dieterichs,
Mr.. Benedict and Mr.. Gernanowski bought
out my interests. There was but one COM
pany there when / went into the business.
in 1913. Some time after that an opposition
company came there to furnish water gas
under the low process. Mr.. Frost. of Phil
adelphia. was the moving spirit. Ii operated
and sold gas and put in ten miles OF pipe
The plant was purchased by parties inter-
ested in the old company preceded by
1.-The development of natural gas led to
a company to bring that fuel to Indanap-
oils. and ii leased the pipes OF the water
gas company. stockholders OF the old
company became the owners of the major
~ . ctr OF brought
in ten or eleven years ago.
quite a number of experiments were
made to make the artificial fuel gas. but
of the gas. but principally because the cost
prevented its being manufactured so as TO
be commercially valuable: There is no place
mercially success. We piped gas to the
city first in twelve-inch mains. distance
Iogansport. but '' each year ar It WAS found
necessary to go further and further into the
field. The source Of supply to-day Is sixty
miles distant-that is, the main line and
EARLY GAS PIPING.
1.-THE gas was brought in first in an
eight-inch line, and then the Consumers
Company brought in a sixteen-inch line.
When it became apparent that the two
lines were insufficient to supply the de-
mand, the manufacturers united and built
a line of their own, but supply no gas for
domestic purposes. At that time there were
two companies there, one with a twelve
inch main and the other had a sixteen and
an eight-inch line, and yet there was not
enough. and the manufacturers took indie
pendent action. They had an eight-inch
main. There are now five mains, and. with
all of them at work at this time, the city
is supplied, but last winter 1t was not. The
more Consumer soM In the ast two Weeks ths
Board of Trade appointed committee to
ascertain what, If any. movement can be
made to better the situation.
During the time of the greatest distress
at Indianapolis wood was burned In CRATES
and there was very general suffering: All
fuel obtainable was used. This condition
was general. This lasted from early In jan
uary until late in March. Gas was not
thereafter used In factories in order to sup
ply the domestic demand. They first cut off
the large factories and then the small ones.
When first went into the business the
rock pressure was 800 pounds. The high
est. pressure in the State is 200 in fields
which are not being largely drawn on. The
average field pressure. is less than 200.
Pumping is used on all lines coming into
Indianapolis. Wherever gas is carried any
distance pumping is necessary.
DIETERICHSS USE OF WATER.
Mr.. Dieterichs and his assistants bought
out the gas interests In which was inter-
ested in 1880. The owners received from
Dieterichs s2.O0o,eO0 The Dieterichs' then
capitalized 1t at s2.Oo 900 stock and g. 700 900
| in bonds, some of which were sold on the
market in New York, and the balance went
| to the promoters. Mr.. Dieterichs's state
ment to me was that he and his associates
| got $4,000 in bonds. worth par at los, and
| 81, 800, coo of the stock, quoted at 125. There
| was $4,000 in bonds put in the treasury.
| The difference between the $2000,000 and
~ 30 coo IN bonds went to the promoters for
| told me-. Mr.. Dieterichs's negotiations COW
cred quite a time. and finally the cid gas
men concluded It was best for them to sell
their property to him, and they did. He
began negotiations, and / knew him as q
| gas man. Before 1 signed the contract i
ried out. He gave the Central Trust Com
pany as guarantor and we got our money
from It; 1 do not know who controls the
| to last January. Mr.. Hastings is now presi-
| dent. He is a relative of Mr.. Benedict
| There is now controversy between India n
| apolis and the Dieterichs syndicate. The
city a few years ago fixed the price of gas
at 20 cents. The gas company gave bond
and tied the matter up in court, and the
| case has never been heard. A proposition
| is now pending. between the city and the
| Dieterichs' to fix the price at sos The
| Dieterichs people got an injunction against
/ the city from enforcing the ordinance.
The Dieterichs people now control all the
prominent Indiana gas plants supplying
direct purchase Mr.. Dieter:chs's statemen ~
| 10 me was that they pursued the same
course as TO the issue of stocks and bonds
| in the other cities of Indiana where they
| bought gas plants as in Indianapolis. That
| vas his statement to me.
| II cannot give you the life Of a gas field
| The Indiana pressure has gone down from
| 800 pounds TO an average of 80. Mr.. Bene.
| dict was the principal owner of the Chicago
| natural gas venture.
THE valuable provision under the pend
| ing ordinance Is the artificial gas feature
f fe saI featurs so vane artificial
| an investor. ! would not put money in II
| on Its natural gas feature. fix the value
| of the franchise to the city at from $500. COZ
| TO H,5Oc,00o That is what / should say II
| Is worth 10 Cincinnati. / would be willine
| to secure the franchise from the city
Mr.. FLETCHER IMPERTURBED
You sold out because you thought nat.
ural gas giving out?" asked Judge Outcalt
II haven't said that" said the witness
You didn't?" said Judge sOutcalt, in hi:
| most ferocious manner.
IF did," said Mr.. Fletcher. cit will be-
on the strength of these notes. and dom
propose TO have you put words in my
mouth" and then Judge Outcalt, finding h.
had a witness who could not be bulldozed
| put on his other manners. and the exam
inaticn went on as follows:
| AT the time of the divisions Of the bond:
and stocks the Deterichs' made no improve
| indianapolis. consider these bonds good
holdings. The dividends have been paid or
| them. 1 should say three-fourths of all III,
| householders of Indianapolis are being sup
| piled with natural gas. IL has benefited
the city by the cleanliness II has brought
- L., G.afF1 1fn