The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-01-17
COURT BACKS
CITYS RIGHT
TO GAS FIRM
Way Prepared for Taking
Over Company by U. S.
Bench'S Ruling.
WAIT FURTHER APPEAL
Decision UphoIds BaltzeII
When He Declined to
Enjoin Public Operation.

The city today prepared to take
over the Citizens Gas Company fol-
lowing affirmation of the city's right
under the 1905 franchise Friday aft
ernoon by the United SRtes circuit
court of appeals at Chicago.
Although attorneys for plaintiffs
in the original cases, that were ap-
pealed from the federal court here
today would not state whether they
might carry the litigation to the
United States supreme court, city
officials were paving the way for
immediate acquisition Of the utility.
No normal action will be taken by
the trustees and directors of the
municipal utility district until after
plaintiffs attorneys study the ruling
of the appeal court and announce
their decision on further court
moves.
UphoIdS Baltzell Ruling
The utility district under which
the company, when owned by the
city, will operate was formed in the
1929 legislature. Trustees and
directors have been elected and all
that remains to be done is for the
officers to confer on the time and
procedure in acquiring the company
should no further appeal be pressed
The decision upheld Judge Robert
G. Baltzell's decision given May %
1890, when he declined to enjoin the
delivery of the gas property to the
city, asked by stockholders in their
suits.
Mayor Reginald H. Sullivan saic
there will be a meeting of attorneys
for The city within a few days.
Frederick E. Matson, chief at
torney for the plaintiffs, said he
would make no comment until he
and other counsel had studied the
ruling.
Bonds to. Cover Purchase
Under the 1905 franchise, the city
will pay $S,050,000, face value of the
common and preferred stock, plus
$4,000 premium payable on the
preferred shares if called before
maturity. The common capita
stock carries value of $2,000,00C
and the preferred issue $1,0O0,000
Under the law, the utility district
is authorized to issue bonds cover
ing the, purchase.
In the ruling appeal court judges
stated:
Appellants claim the city now is
without power to acquire the gas
plant because such acquisition has
spot been approved at an election
and authorized by the public serv-
ice commission.
THE Indiana statutes, in oul
opinion, do not require such author
ization of the conveyance which the
directors of the company are COM
manded by the articles of incor-
poration.
Litigation Pending Two Yeas
1T Is not purchase by the city
The acts of the city in connection
with the operation of the plant
after the directors have performed
their charter duties, are matters
with which the certificate holders
are not concerned. When they are
paid off, as provided, their interest
is at an end"
Litigation attacking the acquisi-
ton has been pending nearly two
years. The first suit was filed by
Newton I: Todd, investment broker
and the second by John J. Cotter
Of New York.
Trustees of thel city's utility dis
trict are Thomas c. Howe, Sterling
R. Holt, George j. Marott, A. D
Eitz and William j. Mooney. Di-
rectors are Henry L. Dithmer
Broadhurst Elsey, Edward A. Kahn
Eli Lilly, Almus G. Ruddell and
Guy A. Wainwright.