Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1921-08-29

its earnings permitted and that at the
end. Of a twenty -fve-year period, the
term of the franchise. II all the stock
and debts of the company were wiped out,
the entire plant should so 70 the city
for nothing. If the stock or any part Of
It were not retired. and there were other
debts, the company was to mortgage the
plant for enough to reimburse the stock
holders and the city was to take the
plant and assume all Of the indebtedness
Although it has been superseded by
emergency orders of the public service
commission, the franchise fatty provides
the price of gas shall be 60 cents per
1000 cubic feet and that if a higher rate
ever were charged the city was to come
into immediate possession Of the plant
under the same terms as was provided
for acquisition in 1890 Thus. by surren-
dering the franchise the company may
have gotten out from under any possi-
bility that the city might eventually
force a return TO the 60-cent scale The
present rate is 90 cents.
Important provisions of the contract
which it is known the city administration
would like very much TO retin are these,
Compulsory publication twice a year
by the company of q statement of It's
financial condition.
Right of the city controller to examine
the books of the company at any time
and Of the civil engineer to make an
examination of the company's property.
That the earnings of the company shall
be used first, to pay matured debts and
operating expenses; second, to pay semi
annually the 10 per cent dividend guar
anteed stockholders; third, to make such
extensions and betterments as may be
ordered by the board of public works
and, fourth to retire stock.
That the company must submit plans
and get approval from the board of
public works whenever it desires to open
any street, alley, sidewalk or other public
land.
That the location of service pipes from
mains to citizens homes must meet the
approval of the property owner and that
the service pipes. meter boxes and safety
devices must be put in at the expense Of
the company.
That the company at its own expense
must change the location>of its pipes in
any street or alley when the city desires
to change the grade thereof.
That the company shall use the best
quality OF materials in its plant con-
struction and that mains shall be OF
sufficient size to render adequate service.
That all gas pipes shall be so located
as not to interfere with the city's sewer,
water or other pipes and that when tho
city wants the location of any gas pipe
changed the company shall move ii at
it's own expense.
That gas shall be Of sufficient pressure
and of 600 British thermal unit quality at
all times.
Right of the board of public works to
test meters and the quality of gas.
Right of the board of public works
11-v 80
failure to supply sufficient gas Of
standard quality.
Right of the city to I'LL excavations and
charge the company for it when the util-
ity fails to fill up trenches itself.
Right Of the board of public works to
order the company to make not more
than $4,000 lineal feet of main extensions
per year up to Jan. l. 1922, and not more
than 80. 900 feet per year thereafter during
the life of the franchise.
The right to inspect the company's
books and property has been considered
of value by city officials because such in
vestigations might prove important in
case the company makes representations
in petitions for rate increases which the
city does not believe are justified by
facts.
Provision that the use of earnings on
extensions and betterments ordered By
the board Of public works shall be third
in the list of purposes for which COM
lany money may be spent has been held
to give the city greater insurance that
the comany will keep pace with the
municipalities growth.
The limit upon the number of feet of
main extensions the board may order in
year has been regarded as advantageous
by the city administration. Originally
there was a fiat limit of 10000 iinesl
feet. During the administration of Sam
uel Lewis Shank, as mayor, however, tho
board of public works negotiated an
amendment to the franchise which pro-
vided that the limit should be 10000
feet after Jan. 1,1912. $4,000 feet after
Jan. /, 1917 and 10000 feet after Jan. I,
1922
The franchise became effective Aug. so.
1905. and would have expired Aug. 50,
1850
The Citizens Gas Company also is the
owner Of the franchise of the Indianapolis
Gas Company. but matters of servieet rs
discussed above h&va Nr" ssa'l by
the city under the Citizens g0-.s4.sei.