The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-04-27
On Last "wednesday He Was Informed
that the Company Was Ready to
Consider Proposition.
HIS RECENT OFFER RECALLED
TELEGRAMs TO ALLEN VI. FLETCHER
SAID TO BE UNAvAILING.
Officers of the Gas Companies Have
Theory for Haax's Oft Ex-
pressed Antagonism.

The trustees of the Consumers Gas Trust
Company have answered the communica-
ton which they received last Monday from
julius A Haag in which he submitted a
proposition to buy out the company and pay
the city of Indianapolis $500, COO The reply
of the trustees was mailed to Mr.. Haag
last Wednesday and since he has not seen
fit to make it public Mr.. John H. Holiday.
secretary of the company, announced its
purport last night. Officials of the COM
psny express surprise that Mr.. Haag has
not acted in accordance with their sugges-
ton that he name date for conference.
since they understood that he was anxious
to present his offer to them early pos
sible. In view of Mr.. Haag's silence the
impression is growing with them that the
proposition was not made in good faith.
The gist of the reply is as follows:
While you understand that as trustees
OF the property we have no power 10 sell
without action of the stockholders, never
theless. we are quite willing to entertain
an offer for the property. We will be glad
to confer with you and suggest that you
name early date for a conference in
der that there may be no delay in sc curing
| legislation looking toward the esta blish-
ment of meters"
AS has been said, the letter was sent by
Mr.. Holiday on last Wednesday. and has
/ been in Mr.. Haag's hands for several
/ days.
OFFER MADE BY HAAG.
Haags offer to the trustees was as fol-
| lows
II make you the following offer: I will
pay balance due on certificates, with s
| (eighD per cent. interest TO July l. 1902. and
/ will pay all the cOmpany's liabilities,
\ sumo all litigation now pending and will
| agree to furnish natural gas at ordinance
| rates as long as 1t can be procured, and,
this company was organized by the citizens,
| L furthermore agree to pay into the city
| treasury 100000 when the final conveyance
is made.
"In consideration Of the above the said
Consumers Gas Trust Company agrees to
| assign and deed to julius A. Haag. assigns
or heirs, all it's property, including real
| estate, wells, pumping stations. pipe lines
/ in and out of the city, reducing stations.
! leases, cash on hand accounts receivable,
all franchises and rights of way, and, in
/ fact. all assets of the company
The officials of the Consumers Gas Trust
Company think that the letter will be
effective in one of two ways 1t will either
give Mr. Haag the opportunity of coming
/ forward with a statement to them in per-
son that he is sincere and of producing the
cash, or it will ''call his bluff" The latter
result is the one that is expected to develop
and the officials of the company are bot
! lying awake nights figuring how they will
dispose of cash to be received from Mr..
Haag.
Commenting on the reply last night, Mr..
John II. Holiday said: Mr.. Haag must
now show that his proposition Is business
like and not meant merely for effect While
we merely trustees of the company
| and have no right to sell the property with
out consent of the stockholders, we would
/ of course have TO accept favorable offer
i The trustees will certainly have to be
/ shown though
PROPOSITION UNTENABLE.
1t was said last night by one in a position
to discuss the offer and the reply intelli-
gently that the Haag proposition is I'M
tenable and unworthy of consideration ON
the face of it. "If he states that he wishes
/ to secure control of the company a bust
ness proposition, with the idea OF making
/ profit out of it, the trustees reply to
| him: We'll. If you can make money out of
the property. who have had no experience
/ why can't We make money who have been
/ in the business a dozen years? Another
thing that can be said to Mr.. Haag. IL is
| pointed out. is this: Your financial stand
| ing in the community is not such that we
/ can expect you TO deliver 10 us Sll6,UOO with
/ interest. and, in addition, pay to the city of
| Indianapolis. by the terms of your offer, the
additional sum of 100000 Therefore. who
I
/ officials of the company believe. causing
Mr.. Haag some thought at present. He
must realize, they say. that the time has
| come for him to make good" with his offer
| or show that ii was not sincere to begin
/ with.
w. H. Shackelton. who is connected with
! the Consumers Gas Company, in
! formed a day or two ago, IL is stated by
! one who was familiar with Mr.. Haag's af-
| fairs, that Haag had been telegraphing to
| Allen NJ Fletcher. of New York. asking
| that Mr.. Fletcher come 10 his assistance,
and that the messages have been unavail-
| ing. Mr.. Shackelton's informant added. it
is stated. that failure 10 interest Mr..
Fletcher in the project had been worrying
| Mr.. Haag.
A PLAUSIBLE THEORY.
! Speaking of Mr.. Haag's attitude toward
| the gas companies. Mr.. John II. Holiday
said last night: II have II from John r.
| Pearson and others that a good many years
| ago. when there was plenty of gas and
| everybody was anxious to be served, a
| number OF wards Of the city that were not
supplied with mains petitioned the compa-
MES TO give them service The companies
would not lay the mains unless the peo-
| pie OF the wards would get up SubScrip-
| tiOns covering the cost of the new mains.
| The Consumers Gas Trust Company agreed
10 lay mains in certain districts IL the peo-
pie served would subscribe for stock in the
| company. That arrangement was pretty
| generally entered into. The indianapolis
| Company. however, could not do that and
necessarily had TO demand cash. There is
where / understand Haag came in. He
evolved a scheme for going among the
people I'm one of the wards which wanted
gas and getting them 10 make up a sort OF
purse Then after the cost OF the mains
was subtracted from the purse, he took
the difference for his trouble. When il
came to working the plan in the old Tween
ty-first ward Haag ready TO do some
more promoting. but the then councilman
from the ward was working in Fletcher
Bank and he said TO Alien NJ. Fletcher. who
was interested in the Indianapolis Gas Com
pany. Why do you let Haag act as third
party in this business when you might as
we'll get the money yourselves The Off
/ Gals OF the company took the hint and
| Mr.. Haag's services in working up sub
scriptions were no longer required. Although
| l understand that he made $500 out of the
business before il was worked out. ne
gained a dislike for the gas companies that
he has never got over"
A Church Rummage Sale.