The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-10-30
His Application for Receiver May
Work Against Interests of the Pub
lie and Benefit Schemers.
TRUSTEES MADE DEFENDANTS
ALLEGATIONS AGAINST JOHN T..
FRENZEL AND BEMENT LYMAN.
Court Is Asked Conditiona1ly to Give
Receiver Power of PrOrating As
sets Among Stockholders.

-A
George J, Marott, through his attorneys,
John b. Cockrum and William A Ketcham.
filed suit in Judge Carriers court yesterday
at noon against the Consumers Gas Trust
Company, the Eureka Investment Com
pany, Thomas a. Morris, Hugh II. Hanna,
John III. Holiday. Henry Schnull and John
G. Williams, trustees for the stockhold
ers of the Consumers Gas Trust Company;
Robert n. Lamb. Henry Coburn, Henry
Wetzel. Frederick Fahnley, John z. Fren-
eel. Albert a Barnes. John T.. Scott and
Bement Lyman, directors OF the trust COM
pany; James Proctor, John H. Enrich, Fer
dinand l.. Mueller, Leopold Strauss. Alfred
Burdsall, Charles II. Adam and Alexander
c. Ayres, as directors of the Eureka Invest
ment Company. and John z. Frenzel and
Bement Lyman individually, asking that a
receiver be appointed to operate the plant
of the Consumers Gas Trust Company dur
ing the tendency of the action, and to as
certain whether or not there is sufficient
natural gas in this territory to supply the
consumers of the company And, if the re-
ceiver does not find sufficient natural gas.
to ascertain the expense of converting the
plant to manufacture and supply artificial
gas in connection with the natural gas
which may be found in the territory. If the
receiver should find ii necessary to disman-
tie the property of the trust company and
cease the supply of natural gas that it's en-
tire assest may be distributed pro rata
among the certificate holders without CIV
ing John p. Frenzel or his associates any
advantage over the other certificate hold
erS.
NOT FOR PRIVATE GAIN.
The complaint states that the Consumers
Gas Trust Company was organized on
Nov. .. 1887, for the purpose of utilizing
the natural gas which was found in a
large quantity in a territory at no great
distance from this city. The company
was not organized for gain in the usual
and common sense applied TO manufac-
turing and mining companies, but for the
purpose of enabling the public TO have a
fuel which would be clean and economical.
In other words. it was organized for public
use and public purposes. a provision was
made In the articles of association. which
are included in the bill. whereby the cap
ital stock of the company was TO be
placed under the control of a board of
trustees composed of five members, who
should vote the stock as a unit, i'm order
TO prevent the control OF the stock from
falling into the hands of private persons
for speculative purposes.
1t is charged in the complaint that Fren-
eel and Lyman, who organized tho Eureka
Investment Company, with capital stock
OF 100000 for the purpose of dismantling
the property of the Consumers Gas Trust
| Company, did not allow their names &c
! appear as incOrporators
EUREKA IN CONTROL,
The complaint states that the capita
| stock of the trust company is $4,000 anC
| $4,000 Of this stock is controlled by thu
Frenzel and Lyman combination. Though
this stock held by Frenzel and his asso
| ciates is the minority stock in the trus
| company they have succeeded. through
| Bement Lyman, who is secretary OF tn,
| trust company and has access TO the book.
| of the company, in getting the names o
the certificate holders of the trust compan,
and have bought up the certificates in ex
cess of $4,000, and when they had succeed
| ed In getting the majority of the certifi
| Gates, organized the Eureka Investmen
| Company. with capital stock of 500, OcC
| exchanging the stock certificates of TIL
| trust company for Eureka stock at mar /,
! this way, though the Frenzel and Lyman
! combination held the minority stock in tn
| trust company. IL hoped to control tn
| stock through the Eureka Investment Com
| pany. The mbination would then sell tn
| assets of the trust company at an appar
| emily low figure, cutting out those certifi
cate holders who were not in the combina
ton and those in control would receive tn
| benefits.
FRENZEL DOMINATES.
II Is further alleged by the bill that tn
members of the board of trustees and al
the directors of the trust company excep
Coburn and Barnes, of whom the plaintiff
states he knows nothing. are under tn
domination of Frenzel and are not actin
for the interests of the city. but have bee
influenced in selling ten miles of the trus
companys pipe lines to their gas territor
and giving options on large amounts @
territory TO Armor e. Stewart, of Marion
that the directors of the company haY
been further influenced into dismantlin
one of the pumping stations and offerin
il for sale.
The plaintiff further charges that Frer
gel and Lyman have circulated report
that the gas is about exhausted and tina
the company is furnishing fuel I'm INSULT
( cient quantities in order that the consumer
might discontinue taking gas. The painti
further charges Frenzel and Lyman wit
giving out a report that the plant of til
trust company will not be converted int
artificial gas plant.
Mr.. Marott states in his complaint tia
the trust company has acquired leases
the gas fields and other property of III
| value of over 100000 The value of til
plant in this city is estimate at somethin
| over 81 100000 and the plant outside the cit
| is worth about 100000 The gas and o
leases of the company are worth frol
! $4,000 TO 1.0000 600. He further states ths
| the company will be able TO furnish natur;
| gas 70 its consumers for some time to com
Mir. Marctt further says that the con
| pany could convert its plant into a mani
| featuring plant to manufacture artifici;
gas and furnish IL 10 its patrons at non
| inal figure without great expense to III
| company and without using up all its al
sets.
LETTER TO THE TRUSTEES.