The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1928-12-20

finances, IOF JHe gas OlhpaHS'
Council will hold a special
meeting Friday noon to act on
Mayor Stacks recommendation
that two local attorneys be en-
ployed as special counsel to aid
the city in taking over the gas
company as provided in the
1905 franchise.
Slack declined to reveal whom he
has chosen to aid John w. Holtz-
man, corporation counsel IN de-
Gliding the best procedure for the
city in preserving the gas property
for the citizens of Indianapolis"
Mum on Counsel
Slack has conferred with several
councilmen and it is understood
they agreed to pass an approprla-
ton for the lawyers fees at the
Friday session. The money will be
appropriated from the mayors $780,
600 contingency fund which was
placed in the 1929 budget. The
money will be available Jan. l..
The mayor declared the city's
steps to take over the $20,0O0,0O0
property will be friendly and that
numerous conferences are planned
with the trustees.
No Fight Intended
mo one need to think we are
employing this counsel to fight the
gas trustees. Everything has been
agreed upon in friendly confer
enceS," Slack said.
Outside counsel will be employed
if the fight becomes bitter and adj
ditional aid is needed by the city
legal staff, Slack said.
Creation of a non-partisan board
which will be appointed by the
mayor on recommendation Of civic
groups is favored by Slack.
1--WE want this utility board 70
have a representative aspect. 1t
will be named so that the person.
mel will look after the best inter
ests of the city," Slack declared.
Given Separate Powers
ats powers will be separate from
those of the citys governing body.
The board should have power to
manage, control and handle the gas
company's finances. 1t will be nee
essary for it to have authority to
issue bonds and probably it will be
separate taxing unit" the mayor
said.
City officials are anxious to have
legislation which specifically will
provide that the Indebtedness
against the gas property will fol
low the property" and not go against
the city property. There is approx
mately $5,500,000 indebtedness
against the gas property. If this
amount was charged against the
city's taxable property the bonded
indebtedness of the city would be
boosted beyond the city's legal Limit.
Details of the course the city will
follow in taking over the utility will
not be decided until after employ
ment of special counsel, Hoffman
declared.
Conferences to Decide
eve have had many plans sug-
gested, but the outcome depends
great deal on the result of confer
ences between the city and the gas
company" Hoffman declared.
The proposals.:
/. Creation Of a separate gas dis
trict similar to the sanitary and
school units.
2. Creation of a corporation to
take over the gas company under
municipal management.
3. Retention of the present trus-
tee plan, with the provision that the
trustees are acting on behalf OF the
city.
Starting of legal proceedings to
take over the plant is dependent
upon whether the gas trustees de-
eide to issue mortgages against the
property and redeem the $2,o00,oOO
common stock at $25 par value, as
originally authorized.
Then Up to City
If this is not done the city will
be forced to take the first step.
Conferences are expected to iron
out" many of these technical
questions, city officials suggested.
Trustees have gone on record as
favoring of turning the property
over to the city, but the financial
interests seeking to obtain control
are expected to offer legal oppo-
sition. Filing of suit in federal
court to restrain trustees from
turning over the properties to the
city in accordance with the original
agreement has been rumored.
It is understood a block Of GER
tificate holders alreadk has retained
counsel for the fighM If q legal