The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-10-21
CITY ASKS FOR
100000 TO
BUY GAS CO.
Application Is Filed With
Public Works Board
for Loan.

First steps in program directed
at municipal ownership of the Citi-
zens Gas Company we're taken to-
day when an application was filed
with the local federal emergency
public works board for a $4,000, 900
loan.
The application was filed by the
law firm of Thompson, Rabb, &
Stevenson, attorneys for the Indian
apolis utility district, in which name
the petition was filed.
Program outlined in the petition
is the result Of numerous confer
ences in which Mayor Reginald H.
Sullivan, attorneys, and gas COM
pany officials participated.
The loan will be secured by rev.
enue bonds issued against the COM
pany's income under its municipal
ownership, it was pointed out, thus
eliminating necessity for the city tc
guarantee the repayment.
Seek to Acquire Stock
The 100000 loan will be usec
to acquire $3,O0OO00 outstanding
preferred and common stock of the
gas company, and expand equip
ment of the company along lines
planned by gas company engineers
several years ago.
AS an outgrowth. of municipal.
ownership, the city will be in a po-
Sition to negotiate to bring natural
gas to the city, a move which it is
estimated materially will decrease
consumer costs, it is pointed out
This plant and property, which
is of the estimated value of $18,000,-
900, can be taken over by the city
free from charges and liens, and op-
Grated by the city through its utility
district, for the original purpose OF
supplying gas at cost to consumers
and the plant can be renovated ano
placed in prime condition, if the
loan and grant are made" the pc
tition set out.
Quick Action Expected
1t is expected that the petition
will be given immediate ocnsidera
ton by board mebers, headed by
Otto P. Deluse, chairman, in order
that recommendation can be rushed
to Washington, where final action
will be taken. -
This move is of greatest impor-
lance to the CITY," Mayor Sullivan
said The action today is the re-
suit of weeks and weeks OF planning
and work, and it is the hope Of the
administration that the plan will be
approved"
1T will be fine thing for the
city and will conclude negotiations
which have been pending for many
years" he continued. The admin
istration has been trying to find
some way to conclude the debt, but
could not afford the cost of out and
out purchase"
No Figures Available
Mayor Sullivan explained that
part of the loan will be used to take
up 100000 in common stock and
ST 100000 in preferred stock, in &C
cordance with original terms of the
agreement under which the COM
panys franchise was issued in 1887.
1t is possible that an additional
So 100000 will be required to retire
bonds, but it is not certain that the
bonds will be declared due.
The remainder of the loan will be
devoted to the improvement of the
company. No figures yet are avail
able on the amount of Improvement
costs or the number of men to be
employed in the project.
However, it is estimated that the
extension of supply mains will af-
ford work for number of unem-
ployed If natural gas lines are
extended to Indianapolis consider
ably more men will be put to work.