The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1928-12-18
The First Protection

The First Protection
The legal opinion given to the trustees Of
the gas company should result in an early and
most positive stand by the city government.
That opinion is that the contract drawn by
the late Aired Potts twenty-five years ago
meant exactly what it said and that it was de-
signed for the purpose of giving the gas COM
pany to the city at it's actual cost to the stock
holders.
1t also asserted that the real purpose was
to furnish gas at COST although this is matter
of policy of operation after the city receives
actual title 1t is just possible that the city
might desire to make as large profits as have
accrued under the private direction and turn
these profits into other public uses.
It is significant that the first echo to this
clear legal opinion is the belief that there must
be a long legal battle to establish the rights
Of the city.
There is the belief that the city will need
the services of distinguished and outstanding
lawyers of national reputation in order to
maintain rights that are conceded by the trus-
tees.
It is always BEST of course, to get the best
lawyers when there is such huge prize at
stake.
The only reason for getting these lawyers is
on the theory that equally good and equally
high priced lawyers will be employed upon the
other side.
The question at once arises as to who will
pay these high priced lawyers who will be hired
to prevent the city from taking over the COM
pany or forcing payments far beyond the face
value Of the certificates.
Certainly under the policy announced by
the trustees it would be a grave misuse of
funds of the gas company to pay such lawyers
from the earnings of the gas company.
The earnings of that company at the pres
ent time, beyond the fixed payments of inter-
est charges at 10 per cent year on the GER
tifcates, belong to the people of this city.
To take any part of the earnings to carry on
q fight against the city is unthinkable.
To reach into the treasury of the company
to pay lawyers to wage legal battle any
other theory than that held by the trustees
would be a misrepresentation of funds and
should be stopped before it starts.
Any group which intends to fight the in
tent of the franchise should, at least, finance
their own war.
That the holders of stock certificates or
some Of them, will wage such fight is quite
probable.
These certificates have been sold upon the
stock exchange at much higher prices than
the face value at which they are to be re-
deemed. Although the price has dropped, the
quotation is now far above the $25 at which
they are to be redeemed by the city. That in
dicates that some one is ready to take chance
that the courts may by some Interpretation Of
law, give the stockholders what the original
subscribers said they would not ask.
Within the last two years there has been
considerable trading in these certificates
There is some basis for the belief that very
powerful interests have been anxious to obtain
as many of these certificates as possible.
From here in, the financial operations Of the
company should be open to the public.
The people have right to know how the
money of the company is expended.
The trustees, it may be assumed, will favor
such program and interest themselves in
safeguarding the earnings for the people.
1t would be lamentable if it were necessary
to use any legal measures to prevent the direc-
tors from financing war against the city's
interest.
The city ought not to be compe Led to finance
war against itself-and any use of money for
lawyers to wage legal fight against munici-
pal ownership would be just that thing.