The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-03-21
Trust Company's Letter.

The letter of the company to the mayor
and Council is as follows:
THE Consumers Gas Trust Company. as
you know. was organized for the purpose
of furnishing natural gas to the citizens of
Indianapolis at a minimum cost. To ac-
complish this desired result it was provided
that after the contributions to the capital
of the company had been repaid out of net
earnings, with interest at the rate of 8 per
cent. per annum, gas should be furnished at
cost. This public spirited but novel scheme
brought into the treasury of the company
through subscriptions to capital stock $685.
651 10, which proved to be but little more
than half what was needed, and, with
great difficulty, an additional sum of $6O2,-
900 was borrowed on certificates of indebt-
edness.
From the inception of the company no
effort has been spared TO carry out the
purpose for which it was organized. a
most excellent plant has been provided at
a cost of 81, 400, 21S.24. A strict but intelligent
economy has been observed in maintaining
and operating the plant. Net earnings have
been applied as rapidly as possible to re-
paying the original subscriptions with in
terest, to the end that the time might soon
be reached when gas could be furnished at
cost. All accrued interest on the subscrip-
lions to capital has been paid and there
remains unpaid of the principal only Sis
$3.50. With so much accomplished ii is
disheartening in the extreme to be COM
PEELED to admit that unless the public,
through you, lends a helping hand, the Con-
sumers' Gas Trust Company will soon find
| itself unable 10 IurnlSn natural gas at any
price. The explanation of this unfortunate
p~redicament is simple and easily under
stood.
THE AVERAGE PRESSURE.
when this company was organized, some
fourteen years ago, the natural gas field
of Indiana, though limited in area, was ex-
ceedingly rich. The pressure at the wells
exceeded 800 pounds to the square inch. A
t%houghtless public decided the supply of gas
to be in%exhaustible and acted accordingly.
Aside from any question of waste, the
legitimate use of gas increased with mar
velous r%apidity. The development of the
gas belt, and. indeed, the growth and de-
velopment of this city, tell the story. The
great city OF Chicago must also strive to
share our luxury with US. The result is
common knowledge. The supply of gas has
been so attacked that for several years the
end has been in sight A decrease in well
pressure has necessitated the use of pump
ing stations, and il now requires about five
wells To produce as much gas as was for
merly obtained from one. The nearer we
approach the end the more rapid is the de-
cine in the prOductiveness and life of the
wells. 1t was startling to learn on the first
OF THIS month That the average pressure Of
the wells now in use was only sixty-three
pounds 10 the square inch.
The policy Of this company has been TO
fOrtfy itself against the approaching ex-
haustiOn of gas by taking and carrying
leases on many acres in the best producing
territory. Within the last year this re-
served territory has been the subject of
attack by rival companies engaged in sup
plying cities other than indianapolis with
gas. Offers OF higher rentals have encour-
aged some Of our landlords to bring suits
10 test the validity OF our leases and ii is
possible. nay, perhaps probable. that we
Will be compelled. II we wish 10 retain our
valuable territory, TO bid for new leases in
competition with companies which sell gas
at good prices in other cities by meter
measure.
The result of its operations last year has
brought the Consumers Gas Trust Com
pany face TO face with an existing. not an
anticipated crisis. The figures have been
published in full in the newspapers of this
city and they tell plainly the need Of i'm
meulate relief If the company is TO con-
tinue its efforts TO supply this city with
natural gas. In this connection il must
be distinctly understood that every dollar
of the net earnings Of the company. ex-
cept what was paid IN the way of reducing
the original subscriptions L. capital and
keeping the interest paid thereon. has been
expended in drilling new wells and pro-