The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1928-12-17
GAS TRUSTEES
ARE READY TO
SELL PLANTS
Insist Only on Protection
From Future Attacks
in Courts.
WILL TAKE LEGAL STEPS
Declare They Are Willing to
Comply With 1905
Contract.
WILL TAKE LEGAL STEPS
Text of gas trustees statement on
Page 16)

CS6C AOJ
Voting trustees of the Citizens
Gas Company believe the 1905 con-
tract to sell the gas plants to the
city Is enforcible and desire to
comply, but will carry the question
to a court Of last resort" as a mat
ter of personal protection against
attack from persons financially in
tereSted in the company.
This was the answer of the trus-
tees today to the recent agitation
for public acquisition of the plant.
The trustees went so far as to
declare that upon advice of counsel
they believe that the gas franchise
Of 1905 set up the company and the
trustees as a public charitable
trust" and that whether the city
ever exercises the right to take over
the company or not, the certificate
holders never can collect more than
SA4S AebNO felA0C "a U41CAI
The contract provides that the
city may take over the gas plant by
paying the 100000 in outstanding
certificates, issued upon stock which
the trustees hold and vote, by in
suring that the certificate holders
have received 10 per cent interest a
year during the life of their certif1-
Gates and assuming the outstanding
Indebtedness of the company. The
lace value of the certificates is $25
each.
These certificates have been SELL
ing for around $57 on the Indian
apoliS stock exchange.
The trustees indicated in a de-
tailed statement that, rather than
being opposed to municipal owner
ship, they merely would go to court
for the purpose of having all debat-
able legal questions settled, SO that
certificate holders would not be able
to file suits against the trustees per-
sonally at some later date.
Move to Acquire Plants
Mayor L. Ert Slack and Corpora
ton Counsel John L. HoltZman
nave declared the city will start a
move to acquire the gas plants, by
1880, when the franchise option Is
enforceable, they contend.
Many civic agencies have gotten
behind the movement to take over
the companies, inaugurated by the
Indianapolis Times more than a
year ago. The Chamber of Com
merce civic affairs and legal COM
mittees are sponsoring luncheon
for open discussion of the move
ment Tuesday noon at the Cham
Der.
The trustees expressed no un-
willingness to turn the properties
over to city after the franchise
agreement that the certificate
holders shall have been paid the
face value of their certificates plus
ten per cent O. year interest (Which
interest has been met out OF earn
ings so far), but declared:
''In view of the important ques-
tions involved an dthe claims like
ly to be asserted by those in in
terest, the trustees have been ad-
vised that it would be unwise for
them to consent to any disposition
of the property of the Citizens Gas
company without a final adjudica-
ton of the important legal ques-
tions, and that to do so might in
volve them in personal liability" :"
Electric Originally Provided
The trustees declare they have
been advised that the law orig
inally provided that an election
would be necessary before the city
could expend any moneys or pledge
it's credit, directly or indirectly. to
purchase a gas works.
Subsequently legislation the trus-
tees state, suspends the provision
for this election, and substitutes the
necessity of approval Of the sale to
the city by the public service COM
mission.
The trustees point out the pos
sibility of amending this law so a
a municipal election again might be
required in place of commission ap-
proval.
The trustees end their statement
with a profound declaration that
they will resist to the end all effors
of private interests to take the
company from he present trustee
ship.
VIII Fight in Courts
Under no circumstances will we
consent" they declare, unless COM
PEELED to do so by a decree of a
court of last resort, to turn this
property over for private exploita-
ton or do any act which will amount
to an abandonment of the public
trust created at the time of the Or
ganization of this company"
The statement is based upon an
opinion by Attorney Will H. Thomp-
son of Miller, Daley & Thompson,
after an exhaustive study. The
trustees are Robert Lieber, LuciuS B.
Swift, Henry Kahn, Gus Schnull and
former mayor Thomas L. Sullivan.
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