Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1920-12-15


Us a consequence it has become increas-
ingly difficult for utilities to sell their
securities.
During the past four years with the
exception Of the first nine months fol-
lowing the armistice when there was 4
business depression, and with the ex-
ception Of the past month, when new
business depression has set i'm, there
has been an active demand for coke and
the by-products OF petitioners manuTac-
ture. almost the entire market for which,
other than the sale of gas, has been
outside the city Of Indianapolis. By rea-
son Of the profit made from such transac-
tons the consumers of gas in the city
of Indianapolis have been able TO re-
ceive gas as a by-product at price
far below that at which it could be pro
duced but for such conditions. So that
Il has been literally true that cheap gas
in Indianapolis has been provided, not
hg the people of indianapolis, but by
business interests throughout the coun-
try. which nave purchased the coke and
by-products other than gas from the
petitioner.
WATER GAS ONLY
CAN BE PRODUCED.
The only gas which can be produced
by petitioner other than that resulting
from the carbOnization of coal into coke
is what is known as water gas and for
which 1t has capacity to produce more
than 1000, 900 cubic feet per day. The
actual cost of the production Of water
gas during the last year, without any
allowance whatever for depreciation, re-
pairs, overhead expense or return on cap
ital. has been much in excess of 60 cents
per LOCO cubic feet and with the above
items included, would be in excess of 81
per 1000 cubic feet
That the prime expense in the produc,
Is Wrn ~.
oil, OF which nearly four gallons are
necessary to produce 1000 cubic feet Of
gas with the required heat standard and
the cost of such quantity of gas oil IN
the last year has been approximately so
cents The constant demand for gasoline
for automobile and other purposes has
brought about a condition in the market
Hhere cheap gas oil cannot be expected
IN the near future, and. therefore ii will
De impossible to provide water gas at
an expense even approximately 80 cents
per 1000 cubic feet
The production of gas, other than wa
ter gas, Is an incident TO the manufacture
0! coke. and unless a sufficient quantity
OF COKE can be manufactured TO give OF
as oy-product enough gas to meet the
requirements OF consumers, the only al
tentative is the manufact Of water gas
to meet the deficiency. This exact CON
dlt10n existed in the month of NOvemb Der,
1870, when as result Of the diminished
demand for coke the operation Of the
ovens were reduced. thereby reducing the
amount OF 9y-Product gas produced, and
more than o@,VOO'O0O cubic feet Of water
gas We're produced at an actual loss TO
the petitioner Of many thousands OF
dollars.
No AVAILABLE FUNDS
TO MAKE IMPROVEMENTS.
The established relationship of cheap
gas to prosperous times with a large de-
mand for coke and the consequent neces-
much in excess OF 60 cents per 600
cubic feet, when times are not prosperous
and the market for coke good. creates an
inherent weakness in petitioners securi-
ties so long as a maximum rate of 60
cents per 1000 cubic feet for gas pre-
walls.
Petitioner has no available funds or
income, under present condition. with
which TO make such improvements OF to
meet such general mortgage bonds at
their maturity. and such means must he
provided through the sale OF additional
stock OF petitioner and additional obli-
cations In the forIasot collateral notes or
bonds.
Petitioner has made inquiry Of in
situations stlndinE high IN American
financial circles. and VINO are familiar
with petitioners history and present con-
ditiOn as well as the general condition
advised that il the spring OF the year
1921 il Will in all probability be posi-
BILE 10 sell petitioners securities at an
expense for interest and discount more
favorable than that which now-prevails,
but that 1t viii not be possible 10 sell
such securities unless an increase In gas
rates can be obtained as an assurance
that the interest on such new oblig1-
tons will be met and a substantial pOr-
ton, II not all Of the principal thereof,
be paid at maturity.
Such opinion corresponds with and
confirms the belief OF petitioner and
which has been expressed by petitioner
In public way 90 the city OF Indlanap
oils, the public service commission and
the consuming public Of the city Of Indi-
annapolis on various occasions during the
current year.
That the most urgent OF all the i'm
provements required 70 be made to petit
toner's plant and one which Il has
agreed with the city Of Indianapolis 70
make in the year 1921. Is a new storage
holder with a capacity Of 100000 cubic
feet; II win require az least one
year fro mthe date an order therefor Is
given to secure the manufacture and
erection OF such holder. That the ex-