Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1921-04-09

quality gas at absolute cost. This was
made possible for the following reasons;
81. The abandoned natural gas mains
of the Consumers Gas Trust Company
were available at cost of approximately
1000, although worth in excess OF
81, 100000
"2. There was a disposition on the
Part of the public to invest upon a
mutual basis, the result of the fortunate
experience as investors I'm the old Con-
sumers' Gas Trust Company, which had
been such a boon to our city.
TELLS OF PLAN TO
RAISE MONEY.
THE plan was to raise the money for
the purchase of these mains, and the in
stallation Of a plant constructed accord
ing to the most modern scientific methods
Tor the manufacture of gas and its by
products, by the sale of stock under con-
dit1ons part Of which are as follows {:
Gas was to be furnished the con-
sumers of 900 B. T. o. at not to ex-
ceed 20 cents per thousand cubic feet.
Inc stock was to be subscribed and paid
for at par. The investors were to re-
ceive 10 per cent accumulatiye annual
dividends. All earnings in excess of
this were to be applied to the canCella-
ton of the stock until such time as the
stakeholder should receive the return Of
his entire Investment, plus 10 per cent
annual interest on the investment. When
this was accomplished the plant was to
become the property of the city with
out cost TO the taxpayers. Under this
condition the property was probably Op-
Grated for four years with every pros
pect of early contamination of the entire
project. Meanwhile, the company had
established a high commercial credit
AT this same time the Old Indianapolis
Gas Company, loaded down with excess
sive capitalization, overbOnded tndebt-
edness' WORKOUT mains, for the most
part Anticipated machinery and methods
of production, and having to meet the
low price established by the Citizens
company, was showing an annual deficit
In its operation, and consequently the
stock Of the company in 1911 was Of
fered on the market at IA cents on the
dollar without buyers. At this june
ture the plan to have the Citizens Gas
Company lease for ninety nine years the
undesirable indianapolis Gas Company S
property was conceived. The terms be
Ing that the Citizens Gas Company pay
an annual rental sufficient 10 cover all
Of the interest charges on the bonded in
debtedness, all charges and tax assess
mepf5 Of every kind, and to guarantee a
dividend varying in amount from TO @
per cent on all of the stock of the com
pany.
This allowed the projectors OF the en-
terprlse to purchase the outstanding
stock OF the old indianapolis Company
at the very low market price. hold it
mated, after which the stock could be
sold readily at par or premium. This
scheme. which would do credit 10 Gas
(Clnord) AddicEs. was carried ont sue
cesstully Ia the later years OF the incum-
bency In the mayors office Of Samuel
Lewis shank, the Seif-styled guardian Of
the peoples Interest. Lacking ordinary
business penetration. and Intimate kuowl-
edge Of financial manipulations. he be-
came an easy prey TO a selfish group that
surrounded him whose intentions he did
not divine.
"Probahly he does not yet know what
happened; does not know that this Is the
foundation for the present so-callcd
troubles OF the Citizens Gas Company.
This lease Of the deteriorated property
Of the Indianapolis Gas Company at an
excessive rental, when its lease at any
rental would have been burden, ar
rested the prosperity OF the Citizens Gas
Company, and forever wrecked the pos
sibility Of the city's requirement Of the
plant by gift. as contemplated.
FLANs FOR GAS co.
II HE'S ELECTED.
"If l become the mayor OF this city,
and this union OF the companies is found
iudissoiuable, | shall undertake Immedi-
ately to have the gas restored 10 its
contract quality OF coo b. r. e.; 10 have
the pressure Increased and made uni
form. condition easily accomplished by