The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-02-17
COURTS MAY SETTLE GAS
TRUSTS LATEST DISPUTE
Majority Faction Among Directors
Seeks Legal Decision to Sup
port Their Plans.
PRESENT RESOLUTIONS
Both Sides Stand Sponsor for
Different Plans at Regu-
lar Meeting.

A resolution that will have an important
bearing on the future OF the Consumers
Gas Trust Company was introduced and
carried by the majority members OF the
directorate at the regular meeting last
night.
Its object is to put to a test in the courts
the legality OF the plan to manufacture
gas. The resolution was holly contested
by the minority. but was passed by the
usual party vote of > TO 3, Messrs. Lyman,
Scott and Frenzel voting may and Messrs.
Richards, Barnes, Bates, Atkins and Lilly
sounding the ayes
Opinion being divided. the resolution was
introduced last night and the action taken
on IL by the courts will shape the future Of
the company. Should the court decide that
the plan is Illegal it would probably mean
the disruption OF the company.
WOULD INSTITUTE COURT ACTION.
The resolution follows.
Whereas doubts have arisen and ques-
lions have been raised as to the legality
of the corporate organization of the Con-
sumers' Gas Trust Company as to the ma
ture and scope Of the trusts, if any, created
by its articles of association. the powers
and duties of said company, the Board of
Trustees and Board Of Directors and the
rights OF it's stockholders and its certificate
holders;
And whereas it is essential to the pros
perity and continued existence of said com
pany that said questions should be judicial
ly and speedily determined;
Therefore be IL resolved, that the Board of
Trustees be requested TO unite with the
Board OF Directors in instituting, as soon
as possible, appropriate legal proceedings
TO determine as to the Legality of the COM
pany's organization, to define the nature
and limits of the trusts, If any. created
by its articles of association, TO define the
powers and duties Of said company, its
Board of Trustees, and its Board of Direc-
tors, and especially the power OF said COM
pany TO manufacture and supply it's pa
irons with artificial gas for fuel and illu-
minating purposes; and also TO define and
determine the rights of its stockholders and
certificate holders.
Re il further resolved. that the secretary
be and he is hereby directed forthwith to
transmit a copy Of this resolution 10 the
Board OF Trustees, with the request that
said Board of Trustees return answer to
this Board of Directors as soon as prac-
ticable.
MINORITY RESOLUTION INTRODUCED
A resolution was also introduced by the
minority. providing that the supplying of
natural gas be discontinued in the city after
Feb %. 1t was defeated by the vote of 3 to
3, and was referred for consideration to
Judge Walker and Judge Howe. The fol-
lowing Is the resolution in full:
Whereas, The report recently submitted
by Mr.. Brill, an expert employed by this
company, states that the supply of natural
gas Seems to be practically exhausted.
and as far as can be seen there is nc way
10 prOlong the life of the natural gas sup
ply. or the usefulness OF the wells which
are owned or which might be drilled For use
in supplying the city OF Indianapolis suffi-
eiently to justify any additional expenditure
in this direction and.
Whereas, by the report of the committee
or stockholders appointed by the trustees
TO audit the accounts OF the company and
the report Of the expert accountant, the
American Auditing Company, employed to
assist said committee, il was shown that
this company lost S6,235.39 during the fiscal
year ending Oct. 81, 1903, in it's operations
as a natural gas company; and,
Whereas, The loss of the company
through the insuficiency OF the receipts to
pay the operating expenses of the company
IS constantly increasing, so that the loss or
deficiency or receipts TO meet actual and
necessary operating expenses is now esti-
mated TO be $4,000 or more per month: and.
Whereas, IL is impossible any longer for
this company to furnish natural gas to con-
sumers in this city except at a great loss.
and his board, on the 9th of February.
1904, recognizing the fact that il was no
longer practicable to furnish natural gas
except at a loss. passed resolutions favoring
the sale by the company Of its leases and
other property outside of the city, and the
construction of an artificial gas plant in
lieu thereof; now. therefore, be il
Resolved. That the supplying of natural
gas in this city by this company be discon-
tinued after Feb. %, 1904, and that notice
Of this fact be sent 20 each OF the present
consumers"