The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-03-11
PULLING LEGAL STATUS OF
CONSUMERS GAS TRUST
Before Judge Anderson
in Injunction. Suit of Byron
c. Quinby.
CITY ATTORNEYS SHOT
Says Company Is Bound to Fur
nish Gas to City-Company
as Charitable Trust.

From legal point of view, the status of
the Consumers Gas Trust Company is a
perplexing problem that is now interesting
many attorneys of the city. Arguments
heard yesterday by Judge Anderson, of
the Federal Court in the injunction suit
OF Byron c. Quinby TO compel the directors
of the company to stop the supply of nat
ural gas at once and to restrain them from
manufacturing gas brought out the fact
that no similar case has ever come before
the courts.
Throughout the day attorneys for both
sides argued the many fine points involved
in the case. Mr. Quinby was represented
by Ferdinand Winter and a. c. Ayres and
the directors of the company by Daniel w.
Howe and Addison C. Harris. while City
Attorney Henry Warrum, speaking in be-
half of the city, exploded a bomb as
closing argument of the day by declaring
that the Consumers Gas Trust Company
was bound under contract with the city TO
continue to furnish its supply of gas.
The point around which the argument
revolved yesterday was a correct definition
of the kind of corporation the Gas Trust
is. Neither side was able to agree on the
point Mr.. Howe held that it was a char
liable trust and that when it was organ
lied no one expected to make money out
of ii as a subscription corporation. There
fore, he said, certificate holder could
not step in and have the company shut
down because he was not satisfied. In no
event, he declared, could the assets revert
to the donors.
Mr.. AYRES'S CONTENTION.
Mr.. Ayres held that the company was
a corporation empowered to do only those
things set forth expressly in its consti-
tuition. He said that the word develop"
in the articles of incorporation did not refer
to- artificial gas, but to the increase of nat
ural gas facilities. The company, he said,
was Enthusiastically limited to furnishing nat
ural gas, and to convert the plant into an
artificial gas concern would be going beyond
the limits of its charter.
Mr.. Winter ridiculed the contention that
the corporation was charitable trust The
gas trust is Incorporated under the manu-
featuring and mining act Mr.. Winter point
ed out. If IT was meant as charitable
trust he contended, 1t should have been
incorporated under the voluntary associa-
ton act, which is for the organization or
charitable institutions such as churches,
etc.
Mr.. Harris began his argument by saying
that he did not think 1t was legal matter
for the judge TO say whether the supply or
gas should be stopped now or on April 1.
He said there never was corporation IN
the State that was just like the ConsuIn-
plete history of the company from its in
corporation, in 1887, to the present contro-
versy. For the nature of its organization.
he said one had to weigh the purpose that
was in the minds of its promoters at the
time CT It's organization and secure a cor
rect Interpretation of words and punctua-
ton used by them, which were apt TO be
misleading to other persons de was OF
opinion that the original promoters mao
more in mind than mere money making
scheme He believed they were actuated
more by public spirit.
QUESTION OF JURISDICTION.
Another point around which the argument
conferred was which court had jurisdiction
over the case Judge Howe held that the
Federal Court did not have jurisdiction,
and said that its action should be stayed
on the grounds that the suit had been filed
first in the Marion Circuit Court. The
attorneys for Mr.. Quinby pointed out that,
although the suit in the Circuit Court was
filed on Feb. Is, IL was not ratified until the
10Th by the directors and trustees, while
the suit was filed in the Federal Court
Feb. 49, An argument then followed as TO
whether action taken by part of the direc-
tors was absolute. The suit in the Federal
Court had been filed by the ma jority of the
directors without the knowledge OF the mi
nority. Judge Anderson interrupted by
saying that he was of opinion that the di-
rectorS can act only a board. He said
further he believed that even if the COM
pany is charitable trust Quinby has the
right to ask the court TO define his rights.
I.'If a man." he said, donates a sum Of
money TO an Institution for a certain pur
pose, and he finds that they are using IL
for another purpose, he certainly has
right TO interfere
At 4:45 p. m City Attorney Warrum asked
for a hearing. and in a somewhat fiery
speech declared that the Consumers Gas
Trust Company is under contract with the
city to occupy the streets and public places
with it's pipe lines and TO furnish gas to a
certain number of citizens as long as the
supply holds out. He charged that the
plaintiff asking the court to violate
the company's contract on the ground that
il is not a profitable contract to one of
the parties.
The court adjourned at $50 TO continue
the hearing at $3.50 this morning.