The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1908-01-26
indianapolis Newspaper
Man Tells How Citizens
Outwitted Old OPP
preSsiye Company.
Cheaper and Be tt e r
Lights Due the.People
of Washington,
He Says.

Delavan Smith, owner and publisher
OF the Indianapolis News, in Washing
ton on a business and pleasure trip,
yesterday talked to The Times about
the long tight which Indianapolis has
just won for cheaper gas.
Mr.. Smiths newspaper was one o;
the most potent factors in bringing
about the victory for the public inter
est in the Indiana metropolis. and Mr..
Smith has very fully informed him
self On the subject Of gas incident u
the contest
Years ago." he said, when natural
gas was first developed IN Indiana, It
was piped 10 Indianapolis. and the Con-
gumers' Gas Company laid mains and
supplied il 10 the city The gas was sold
very cheap. the price representing the
cost OF operation, plus a modest return
on investment When the supply of gas
was exhausted the mains Of this com
papy lay unused under the streets The
Indianapolis Gas Company. the Old ar
tihCial gas company, had been the COM
peutOr OF the new concern IN the
charter Of the Consumers Company
there had been placed a clause provid-
ing that the city might take over the
mains. After the exhaustion Of the
natural gas supply a movement for
cheaper gas was started. and the city
served notice on the Consumers Com
pany of a desire to take advantage,
under its option, of the right TO take
over the property.
Citizens Company Formed.
Meanwhile. as a result of the move
ment for cheaper gas, the Citizens
Gas Company had been formed. It was
an organization OF the people; most Of
its stock, of which there are more than
1900 holders, has been taken in amounts
of 800 or less. the lowest amount being
SIS. This company bought from the city
its option on the property Of the Con-
sumers' Gas Company, and prepared
10 take over the mains and tC establish
a plant for the purpose of supplying
artificial gas through them. The proper
ty was appraised in due form, each
side being represented by an appraiser
and a price being reached after full
investigation, and agreement
The new company viii erect a plant
for the production OF artificial gas,
which il has undertaken TO sell to the
city at 60 cents. The price charged by
the old Indianapolis Gas Company Is
50 cents per LOCO feet The Citizens
Gas Company did not go into the en-
IerpTise until II haC made the most
thorough investigation of gas manu-
facture and prices. In this country and
abroad. Experts were sent to study
the question, and on their reports are
based the assurances that the new COM
pany can make and sell gas at the price
proposed and earn a good dividend.
Distributed for 90 Cents.
''The fact is that under the process
Of making coal gas, the illuminant can
lie produced in the holder, as a by-proG-
yet, without cost 1t can be distributed
at 60 cents per 1000 AT a good profit.
They do it in various places Wash
tngtOn ought 20 be one of the best
places for the business on this basis.
There are two reasons for this. The
mild climate here assures a very large
gas consumption the year around, be
cause there is very little weather so
severe that any other fuel than gas
will be used for cooking. Then. Wash
ingtOn has regulations about smoke
which make coke a highly desirable
and valuable fuel; and coke is the great
first product Of tie process Of making
ccal gas. Washington IS ia a relation
to the fuel supply as favorable as that
Of indianapolis. There should be no
question about gas selling proftably
here at so cents.
"OuT Citizens Gas Company will be
gin furnishing gas as soon as its manu-
featuring plant can be finished; the
mains are ready, with consumers as
aured. They will DC extended as fast az
possible so as 10 secure a larger ellen
tels What we are doing is in no wise
exceptional; the rates in Cincinnati
Louisville, Cleveland. ana other cities
show that our new company is making
a good business proposition in gas at 60
cents. The Legislature of Indiana has
passed a law under which the rate
which the city may pay for gas for
public lighting will DE reduced, at the
expiration Of the present contract, to
60 cents