The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1927-01-19
DIRECTORS
TALK GAS
RATE CUT
Utility Board Meets to Name
Officers for Coming
Year.
PRICE SLASH PROMISED
Action on Reduction Not Ex-
peCted Today.

A cut in gas rates for Indianapolis
users was discussed at the annual
meeting of the Citizens Gas Com
pany directors today.
Reelected for 1927 by company
trustees Monday, the nine directors
were expected to re-elect last years
officers.
Little hope was held for rate cut
ting action today. While some of
the directors favor passing part of
excess earnings on to users now, the
majority believed all arreeaage divi-
dends should be met first and a re-
serve established to care for the
$2,000,00O Improvement program now
in progress, it was said.
AS reported exclusively in The
Times the Citizens Gas Company
earned about 4S per cent on the com.
mon stock in 1925. Figures for 1926
have not been made available.
Arrearage dividends accumulated
over n period Of years have been
paid up with the exception of ap-
proximately per cent, or a total
of about 100000. This amount is
expected to be paid before the first
half of the year.
- Assets Shown
Capitalized with 2,000,O of com.
mon stock and a preferred issue of
$1,000,000 outstanding, the company
has funded Indebtedness of about
$5,000,000. Its balance sheet as of
Dec. 81, 1925, showed assets in ex-
- of $11,OO0,000.
When petition was filed in Federal
Court in 1923 for an increase Will
liam P. Kappes, as special master in
chancery, fixed a valuation of more
than sixteen millions for the property
and allowed more than four millions
for intangibles. Kappes is now Fed
eral Court clerk.
Under the trust agreement in
operation since 1906 the certificate
holders, certificates being issued in
lieu of common stock, are guaranteed
a return of 10 per cent annually on
the investment.
A provision in the trust agreement
stipulates that the city of Indian
apolis can take the property over
when the interest shall have been
paid in addition to the face value Of
the certificates.
Kept Local Control
The face value of certificates is
but $25, but they have been selling
on the local stock exchange for ap-
proximately $50. When eastern capt.
tai sought to gain control of the
company several years ago local men
bought in blocks of the certificates
at $40, paying premium Of SIS
each, in order to retain local con-
troll.
In a recent interview John r.
Welch, company president, stated
that the people of Indianapolis now
have city.owned company with the
politics eliminated"
Possible municipal ownership Of
the plants is based on the provi-
sion in the articles of Incorporation
reading:
"When said certificate holders
MIlall have received by dividends or
otherwise upon said certificates an
amount equal to the face value
thereof, together with interest
thereon at the rate of 10 per cent
per annum payable semi-annually,
then said certificates isued to said
subscribers shall be deemed fully
paid and Cancelled and it shall be
the duty of the trustees and d.
rectors Of said company to convey
said gas plant and all property be-
longing to said company to said
city Qndianapclis) to be owned and
operated or leased by it, and all
the rights, title and interest of said
company or its certificate holders,
stockholders, officers, directors or
trustees shall be deemed to be full
ly paid and extinguisled."
Directors and officers are:
J. /. Dissette, Edgar II. Evans, H.
H. Hornbrook, G. A. Efroymson,
]. II. Hooker, John r. Welch, AL
fred Potts. Franklin Vonnegut and
Clarence I. Kirk. G. l.. Kirk, vice
president and general manager, and
F. d. Rastenburg, secretary.