The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-04-01
BY q
Tines Financial Editor

thf EH Ntuatol in Incianapols-
BY VINCENT LYONS
Times financial Editor
Having delved deeply into the
corporate Innards OF the Citizens
Gas Co and less deeply into the gas
rate structure. the writer today re-
C~apituiates the highlights OF the
preceding rs articles. In addition,
this resume poses a group Of Ques-
tions which sIe Of major concern 10
every gas consumer and every tax
payer in the cstr
The conclusions drawn in the
various articles have resulted from
a long and intensive survey. Fig
ures cited IN connection with the
Citizens Gas Co. we're taken from
the annual reports filed with the
Public Service Commission and the
c0mpanvs own books. The mis-
ceIIaneous differences on rates for
gas were prompted after careful
ANALYSIS of these charges as report
cd By the American Gas ASsOcia-
ton.
The series OF articles on the gas
situation have proved:
l. That both b0ndhOlders and
stockholders OF the indianapolis
Gas Co. as a result Of the lease
cOnsummated In 1913 with the Citi-
zens Gas Co. have been guaranteed
a fixed return on their investment
as long As the lease remains in ef-
feet.
Gas Rate Has Increased
2. That the gas rate in Indianap-
oils has increased from so cents 10
S105 since 1920. although the orig
inal contract between the city and
the Citizens Gas Co. provided that
the charge would never be above so
cents.
B. That - per rent OF the total
operating revenues OF the Citizens
Gas Co. since 1914 has gone into
operating expenses. indicating that
the production or manufactured
gas is an expensive proposition.
& That earnings Of the Citizens
Gas Co. from residuals. which in
cludeS coke. have declined from
1921 OF I'm 1920 TO STATS. 200 in
1888.
5. That the combined book values
81 the Citizens Gas Co. and the
indianapolis Gas Co. are I 8.4O4.1 los.
whereas stock and bond issues of
the two companies currently out
standing are SI6.0l9. 900.
s. That the Citizens Gas Co. as
now comprised. must pay out 500
500 yearly 10 miscellaneous stock
and bOndholderS.
Invested in Coal Company
:. That the Citizens Gas Co. has
made stable investments in the
MiIburn Bv-PrOductS Coal Co. OF
West Virginia. over a period OF
years.
g.. That the mysterious Dow &
Co. owns 30.9s5 common shares OF
the Citizens Gas Co. and 3.l58
roramou shares OF the Indianapolis
a. s Co.
o. That officers or the Citizens
Gas Co. had been owners OF large
blocks OF the common stock at one
time.
10. That II the city OF Indianap-
oils we're TO take over the Citizens
Gas Co. on July 1 IL would need ap-
prOximatelv 81. 700. 900 to retire the
two stock issues and the bonds and
accumulated interest and dividends
up to tina date. II the Indianap-
oils Gas Co. lease we're taken up on
the present basis further indebted
ness Of 1851 900 would be in
Cured.
IL. That the indianapolis Gas Co.
owns $50 miles OF the 867 miles OF
gas mains now utilized by the Cit
liens Gas Co.
Natural Gas Cheaper
T. That weird fluctuations Occu.
throughout Indiana. and the nation
rs well. i'm the price or both manu-
featured and natural gas. However.
IT. Is proven that natural gas. Of a
higher British Thermal United on
tent. is much cheaper than manu-
featured gas OF a lower B. T. L..
content.
Is. That indianapolis is not pay
ing an eXOrbitant rate for manufac-
tured gas when ~cOntraSted with
other cities also receiving that type
OF as
IA That on a national scale. gas.
without regard 10 type. is on the
average about 10 cents a 1000 cubic
feet cheaper under municipal own
ership than il is under private own
erShip
rs. That = provision Of the bonds
u be- issued bv the Department Of
Public Utilities for the purpose OF
acquiring rhe Citizens Gas Co
makes it possible for the board OF
directors 81 the department TO levy
a tax on al property owners n In
dianapolis 10 meet principal and
interest on those obligations IN the
event that earnings are not Sufh-
cieut for this purpose
Recommendations Made
Is That the taxpayers. being 50
vitality affected by any steps taken.
might rightfuliy question whether
the dividend a~CcTualS on the Citi-
zruS Gas CO. common stock. which
viii amount to 100000 on July l. Is
legally a direct obligation because
OF the fac that IN several years
earnings we're insufficient 10 az
rant such disbursements
While the directors OF the Depart
Il0ANS nE ToE