Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1922-04-20
COHEN ASKS
RECEIVER IN
GAS co. SUIT
Holder of Six Shares
Of Stock Alleges
Insolvency.
SALARIES TOO BIG
Suit Charges Officers
With Recklessness,
Extravaganza.

Suit for a receiver for the Citizens
Gas Company was fled in Superior
Court, Room j, today by Samuel T.
Cohen, holder of six shares of the COM
panys stock.
The suit charge that the prudential
affairs Of the Citizens Gas Company have
been and are grossly mismanaged, and
that the business has been and Is carried
on in a reckless manner" that large
sums Of money has been expended in
propaganda to educate the people to
coming higher gas rates; that the COM
pany is boarding coke valued In excess
Of 81 100000 which 1t sells to non resident
dealers who re-shlp it to indianapolis
and sell 1t at an exorbitant price; that
the company is "insolvent and has not
now sufficient funds and means to pay
its existing Indebtedness" and that the
company has been selling inferior gas.
The complaint says Mr.. Cohen pre-
sented to the officials OF the company
dividend certificate, which had been
Issued in lieu of accrued dividends prior
to July 1915. 1t is averred that pay
ment on the certificate was refused and
that an agent Of the company told the
plaintiff that the company had no funds,
and that the concern was financially un-
able to pay said obligation and was
in bad financial condition" and that
the money might mot be paid until sew
eral years after"
COKE VALUED AT
MORE THAN MILLION.
1t is also alleged that the company
has in its possession coke valued at more
than $1,O00,00o, which it refuses to sell
TO resident dealers and consumers. 1t is
alleged that the coke is sold outside the
State and later shipped back and
sold to local consumers. The suit
sets forth that the reason assigned by
the gas company to account for It's failure
to sell the coke to raise money that the
defendent company would Sustain great
loss in marketing the said coke by reason
Of competition on the open market"
1t Is further related that the defendant
owns property, real and personal valued
at more than $4,000, coo, In addition to
the coke and other by-products which
could be sold and made applicable on
debts and obligations without detriment."
1t Is contended that the gas company
refuses to do this.
That the gas delivered IS "of low and
inferior grade and is being supplied in
violation of the laws OF the State of In
diana" is also charged. 1t is stated that
IL the defendant company were properly
and carefully managed and If its by
products were produced and marketed In
competent and business-like manner
the defendant company would now have
sufficient net earnings with and out Of
which to meet obligations as they became
due and could also manufacture
and sell artificial gas at a rate not ex-
ceeding 30 cents per 1000 cubic feet of
the legal thermal requirements.
BRANDS INCREASE
OF RATES UNJUSTIFIED.
It Is further recited that the defendant
has pending before the public service
commission of the State Of Indiana a De-
tnion for an increase to $125 per 1000
cubic feet. The increase is branded as
wholly unjustihed and unnecessary" and
the present alleged financial condition Of
the gas company Is attributed to "reck-
less, Incompetent and unbusinesslike
management and unless re-
ceiver is appointed by this court to take
charge Of the affairs Of the defendant
company there will be caused irreparable
loss and detriment to the stockholders"
If the public service commission grants
the rate increase it would not save the
company, 1t is alleged. Neither S125 or
higher rates will relieve the financial con
dition or place the affairs on a sound
financial basis. The increased
earnings would be sQuanered, wasted and
mismanaged working an in
Justice and oppression to its stockhold-
ers and to the general public"
The petition asks the court to author
ize the receiver, If appointed, to "con-
tinue business, sell and dispose of sur
plus holdings. pay debts, and conserve
the assets and business of the company.