The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1928-12-08
CIVIC GROUPS
STUDY PLAN FOR
GAS TRANSFER
Methods of Management
Under City Control
SCrutinized.

Methods of management of the
Citizens Gas Company under pro-
posed ownership we're studied today
by a committee of the Federation
of Civic Clubs.
D. V. Griffith, chairman of the
federation gas committee, recon-
mended Friday night at the Cham
Der of Commerce that the fedora
ton favor the city talking over the
utility in accordance with the Origi-
nal charter granted by the city in
1905.
"The committee is decided on the
ACCESSIBILITY of the city assuming
ownership of the gas company as
originally intended. The methods
of properly managing the plant
under municipal ownership will
come later" Griffith said.
To Mold Public Opinion
"The federation should do every
thing possible to mold public opinion
in favor Of the city exercising its
right"
Griffith said the committee is OBJ
tanning data on utilities operated
by municipalities, particularly
those under the city manager form
which becomes effective here in
1880. Suggestions from citizens in
terested in preserving the utility TO.
the public we're invited.
The committee will meet again
Dec. 10.
City Councilman John F. White.
south side civic leader, pointed out
that the city manager form will no.
necessarily care for the gas manage
ment problem.
Change at First Of Year
1.-THE change of form comes at the
first of the year and it will be rather
difficult for the city manager 10
take over this large utility indus
try at that time. He will be facing
other big problems" White said.
1.-THE first step is for the city TO
determine whether it is desirable
and possible to take over the owner
ship. The management should then
be taken into account.
Certainly rates will not be low
eeed if the gas company goes into
nrivate hands. The original idea
was for 6O-cent gas. 1t is evident
that a decrease in rates is quite
possible if the utility passes to city
control.
Means Lower Rates
"Under private control and own
ership the capitalization would be
boosted. showing $5,000000 to So
100000 more capital, and the pub
lie service commission would up
hold higher rates. The policy OF
private utilities is not to pay It's
indebtedness, but under municipal
control the indebtedness would be
retired. After tina was done the
5 only expense would be for malrA-
tenance, operation and extension.
This difference is vital to the pup
lice. A municipality owned plant
would insure much lower rates than
under private operation.
ct believe the majority OF the
trustees want the city to own the
utility if it can be kept out OF poll
tics. 1t is admitted politics would
have no place in such project.
am assuming that business meth
DDS would be employed"
Snethen In Statement
Edward o. Snethen, attorney.
pointed out that sale Of $25 par
value certificates of stock Tor $57
is an indication that the promoters
intend to "get their money back.
eff private interests can afford to
buy the stock at $57 and expect TO
make money the city could Ger
tainIy profit from purchase of $25,
Snethen said.
Snethen cited the possibility OF
retaining present management OF
the plant under city control.
gII%I an AOI/N IInnIHE