The Indianapolis journal., 1903-11-03
Interests of Big Stockholders or Ad-
herence to Original Agreement
the Opposing Issues.
POTTS MAKES a FINAL APPEAL
STATUS OF THE CONCERN AND PUB
Lie SENTIMENT STATED.
Change of Directors Not Necessarily
Reelection the Present Board
Opinions Given.

The future of the Consumers Gas Trust
Company will be determined to-day at the
annual meeting of the board of trustees of
the company to be held in the office of
John H. Holiday. in the Union Trust Com
pany building, for the election of a board
of directors to manage its affairs for the
ensuing year.
Whether the plant of the trust company
shall be dismantled and it's assets. including
the oil leases and pipelines, sold and Its
proceeds distributed among the certificate
holders or whether the trustees will take
notice of the public sentiment and ap-
point a board of directors who will pre-
serve the trust company's plant and per-
nit it to engage In the manufacture Of ar
tificial gas for the use of citizens as by
its charter it is permitted to do, will be
determined at the meeting to-day.
1t may be that the board of trustees
will defer the election of the directors
until the legal and financial phase of the
plan for manufacturing gas can be in
vestigated.
POTTS'S FINAL APPEAL.
Alfred F. Potts, on behalf of the public.
has sent a final appeal to the board of
to the board of directors as will be in
terested in the continuance of the COM
pany for the public service. His appeal
is as follows:
ITO Board of Trustees Consumers Gas
Trust Company:
'.Gentlemen-I beg to present a final view,
so far as l am concerned, of the public
interest to be effected by your election or
directors of the Consumers Gas Trust Com
pany.
Il will present your board several hum
dred petitions in the way of an appeal, ask
ing for the election of such men as Will De
interested in the continuance of the COM
pany for the public service. 1 claim the
right of these people to speak upon TINS
subject because of their belief that the
be held, for the benefit of the public.
In my view you were appointed trustees
representing the stockholders that nothing
might be done against their interests as in
vestors until they should have received the
amount by them invested with per cent.
interest, but that the main purpose of the
trust was TO protect the consumers against
the stockholders and all others, and that
when the balance of stock amounting to
$1.25 per share is paid off your duty is then
to the public.
EFFORT TO CONTROL.
''It is known to you that some of the
members of the present board of directors
have been engaged in an effort to secure
|
principle that when natural gas was ex-
hausted the company had ended its duty to
the public and that the property then be-
| longed to the stockholders.
Il have been advised by persons, who
| were induced TO pool their stock with the
Eureka Investment Company, that it was
upon some theory that by so doing the pub
| lie benefit would be conserved
IF stock had been purchased at less than
par the buyers might be thought to have
| sufficient profit, or. If bought at par, that
| they might be satisfied with the per cent.
| interest. but it is a fact known to you that
there has been eager effort to buy this
| stock as high as fifteen times its actual
| value, and bought under cover. 1t is ask
/ ing the public to believe rather too much
OF human nature TO accept the theory tnat
| this great sacrifice was being made by in
dividuals under cover for public benefit.
| In the aggregate it will amount to a loss to
| them of several hundred thousand dollars.
These men are now in control of your
company. i shall be very glad TO learn that
they have only the public good in view and
that can be better demonstrated If they
are outside rather than inside the board.
| There is nothing to prevent their showing
their purpose if the company is in the
hands of directors who have no such great
| personal interests to serve. 1t is perfectly
| evident that they have everything to gain
by having the company go out of business
| as soon as possible and the assets turned
over to the stockholders.
"A OllON.
Suppose directors of manufacturing
plant or trust company were found to
have been heavy purchasers Of its stock
upon an avowed theory that, upon certain
conditions, the company would have to quit
business. If the stockholders desired the
company to continue business would they
re-elect such persons as directors, or put
in their places persons of different view
or purpose?
al have no doubt that they have been
advised by some good lawyers that this is
the legal status of the matter and that they
did not begin to buy the stock until they
had such advice. Other lawyers of equal
ability hold entirely different view, viz.
| that the company has right to manufac-
and should do so. and that, if the powers
| granted are not specific enough, the trus-
tees as holders of the stock, would have
a right to secure amendments.
| Here, then, are two diametrically oppo-
site points of view. If the view taken by
those in control of the company is ac-
cepted by the trustees, and the present
managing directors are reelected, of course
nothing will be done, and it will be difficult
for any outsider either to test the lega
question as to whether they have the
whether they can establish artificial
plant. If new board is elected however
holding the more hopeful position In favor
of the public. the effort will be made. and
fairly and honestly tested by disinterested
men.
VIEWS OF THE DIRECTORS.
'It implies, therefore. no reflection upor
the present board of directors to make
change. TIE present directors were repre-
sented in the recent court proceedings by
an attorney who is presumed to have ex
pressed their views as follows: First, thai
natural gass from present supplies was ex
hausted Stcond. that there was no othel
supply to dsaw from Third, that they haC
no power tb make gas from coal Fourth
that they Ead a right to make il from pc
troleum bit that it could not be done
These staeIsents were made in open cour
in the presdlce of the directors 1t is there
fore perfectly evident that nothing can b,
hoped from the present directors, or n
least a majority of them. whose views wer.
thus given :in open court
''In securing the public expression upor
this subject, there has been no persona
feeling so Ear as / am concerned. nor hav,
/ anything spersonal against anyone. Som.
of these directors are my personal friends
as they are the friends of some of tn,
trustees But, with their views, which ar,
well known. the belief of the public is tha