The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-01-28
SENATE PROBE FAVORED
Texas Speaker to Tell of
Waste to Keep Price
lacked Up.
BY Upton BLISH
Times STAFF Writer

states senate 10 20 lllOICuSllly 4hOO
the reasons for the current rates;
they considered asking the United
States Department Of Justice to
prosecute criminally officials of gas
corporations under the antitrust
laws; and they also considered form
ing a cooperative league for the
mutual settlement of their indi-
vidual gas problems.
A principal complaint is that mil
lions of cubic feet of gas are be-
ing released into the air in the
Texas Panhandle oil fields so that
the supply in the Middle Western
region will be strictly under thumb
of the gas companies and the rates
static.
In this connection the meeting
was to be addressed by Charles Kef-
fer. Amarillo. Tex, a representative
of Texas Panhandle property own
ers, who said he would describe to
them the ''inexcusable wastefulnesS
of operators there"
Another complaint is that mo-
nopoly exists and that large utilities
have bought up previously indie
pendently owned pipe lines reaching
the region, so that the output can
be restricted.
And for this information the
meeting will have the testimony of
Frank Parrish, president of the
MisSouri-KanSaS Pipeline Co, now
in receiverShip, which, Mr.. Parrish
says, also is fighting the same
enemies against whom the cities are
arraying themselves.
Senate Quiz Likely
If the group finds that these COM
plants appear to have any basis
in fact, the cities will form an ALI
ance and ask the United States
Senate to investigate a group of
major utility companies operating in
the field.
Among these are the Columbia
Gas and Electric Corp, North Amer
lean Co., Cities Service Co. and the
Standard Oil Co. of New Jersey, the
principal operators Of western pipe
lines.
Today'S parley was called by
Mayor Daniel w. Hoan, Milwaukee,
United States Conference of Mayors
president, at the insistence of the
City of Detroit, whose officials claim
to have evidence of illegal operations
of powerful financial and utility in
tereSts in fixing gas prices through
a monopoly.
City Situation Probed
Second to none in Importance,
Detroit officials claim, is the cur
rent gas situation in Indianapolis
which the state Legislature has
viewed with sufficient alarm to
move to set up within itself an in
vestigating body with the power of
subpoena.
In 1921 the Citizens surrendered
its franchise with the city and was
granted by the Indiana Public Serv-
ice Commission an indeterminate
permit to operate in the city.
In 1929 the city served notice on
the gas company that it intended to
exercise the option to buy, which
was a feature of the franchise, but
which was not included in the per-
nit.
Stockholders of the company
brought suit to quiet the title of the
company's property and Federal
Judge Robert c. Baitzell held that
the option of the franchise actually
held over in the permit on the
terms that were stated in the fran
chise. The franchise stated the
option expired July l, 1880.
The Federal Circuit Court OF APP
pealS at Chicago held with Judge
Baltzeu and the United States Su-
preme Court refused petition to
review the case.
Minor Litigation Continues
Despite this. minor litigation con-
tinued into 1882. The matter of
when the option expired IN fact. in
view of the litigation, has not beer
settled in court nor has it been es-
tablished that the option has eX-
pired-
In a court of equity, the city prob
ably would claim that litigation ran
into depression years when there
was no market for securities it would
have TO sell to take over the prop
critics.
The property would cost $4,000, 900,
plus delinquent preferred stock divi-
dends Of approximately 100000
more.
Moreover, the City of Indianapo-
lis has listened so far with deaf
ears TO the proposal of the Users
Gas Co. whose hackers have not
been publicly identified, that the
city borrow from its funds to buy
the Citizens Gas Co. plant. and to
distribute gas bought from the Users
to customers both in the city and
Marion County.
Legislature starts Action
The Legislature entered the con-
troversy when it passed a law
designed TO make it more difficult
for the Users to obtain a franchise
10 operate in Marion County.
Then, as a charge of an attempted
100000 bride was hurled during a
floor debate on the law. admins