The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1928-03-13
Gas COMPANY
SHOWS SURPLUS
OF S376,336
Despite improvements and
Rate Cut, Dividends Are
10 Per Cent.

The Citizens Gas Company re-
duced its rates in 1927 and wound
up the year with a surplus of $780,
336.TO after paying $4,000 in divi-
dends, meeting all its debt and
sinking fund requirements, making
plant Improvements and meeting
operating expenses, the annual re-
pert, filed with the public service
commission late Monday, shows.
Company officials said that most
Of the profit was made during the
first half of the year. The rate was
decreased July l. The sliding Sched-
ule was reduced from a maximum Of
$1.15 to a maximum Of $l.05 thou
sand cubic feet, ranging downward
10 as low as IS cents for large in
duStrial consumers.
The company wiped out the last
5 per cent of arrearage dividends on
common stock, standing from the
lean years during the war period.
officials declared they did not be-
lieve the profits would be as high
in 1923.
Company Prospecting
The dividends of $370O00 repre-
sent 10 per cent on the common
stock, the 5 per cent arrearage pay
ment and the regular $4,000 pay
ment upon preferred stock.
Within three years the company
has met its obligations, spent hun
dreds of thousands of dollars upon
improvements, steadily increased its
depreciation reserve funds, paid the
10 per cent year upon common
stock and 7 per cent a year upon
preferred stock and caught up with
26 per cent Of arrearage on COM
mon stock.
The rate cut within half a year
caused a cut of approximately
S311,O00 in earnings over what they
would have been without the de-
crease, company officials said. Of
flcials estimated at the time of the
cut that the loss would be 1881 900
Common Stock 100000
Citizens who have urged the pro-
vision of the gas company charter
giving the city the right to purchase
the plant for the face value Of the
common stock and assumption of in
debtedness have been blocked by the
arrearage on the common stock div
idends.
The charter provides that common
stock certificate holders be limited
to 10 per cent annually and that al
surplus earnings shall be applied &c
cancellation of the stock certificates
at their face value of $25 and when
this was retired the city should be
privileged to take over the plant.
With the addition Of S376, 336.7O tc
the surplus in 1927, the company
had in its surplus fund $1,000, 494 38
The common stock totals 100000
in value. None of it has been re-
tired.
S3,O0O,000 From Gas Sale
The company earned $3,O78,O7251
from sale Of gas during 1927. Sale
Of by-products added S2,995, 422 .27
making the total operating revenues
3S073 ,49479.
Operating expenses. including the
slowing away Of $45OO0O in the de-
probation fund, totaled $4.934, 381 81
This left net operating revenues OF
S1139,11328. The addition of $780,
1886 in incorporating revenues
made the gross income for the year
81 ,530,05684
Interest on funded debt and other
deductions totaled $683, 1904, leav.
ing net income tor the year of $746,-
$3.50. Subtraction of the $4,000
in dividends lett the $376,33670 sur
plus.
Total value of the property is
listed at S11919, 1S4.O2. During the
year $3.50, 95OO3 was spent on con-
struction and equipment.