The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-01-29
President of State Senate Is
First Witness of Assem-
bly, Quiz.
JAN. %, 1885
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ent. the committee mentioned that
there had been much discussion over
rumors that the commissioners were
pledged to grant the franchise to
the Users Co. All members Of the
legislative committee voted for the
bill against the Users Coz.
Senator Weiss told the committee
he believed his services were asked
in behalf Of the Users Co. because
of such political influence as he
might have. not because Of his legal
talents.
Telegram Placed in Record
Entered into the record, for
further consideration Of members,
was a telegram received by The
Times last Friday from Luke Scheer'
secretary to John Smith, president
of the Detroit City Council and
a prinae mover in the Investigation
by Middle Western mayors into the
natural gas situation in the entire
region.
Mr.. Scheer's telegram asserted
that several states. including Ohio
and Michigan, we're suffering from
"monopolistic natural gas conspiracy
centerinr in Indiana which violates
both Indiana and Federal laws and
seriously endangers the indianapolis
plan for a municipal plant"
The telegram said further that
the 500 900 mentioned by Senator
Weiss was mere chicken feed" 1t
intimated that secret holding COM
panv agreements would affect the
Columbia Gas & Electric Co, United
Light 81 Power Co, the Panhandle
Eastern Pipeline Co, and the In
diana Gas Transmission Co, natural
gas companies and certain banker
including Cyrus Eaton. Cleveland
capitalist. and J. H. Hillman Jr.,
Pittsburgh"
Owns Citizens Stock
The Columbia Gas and Electric
Co. has been reported to con-
troll a considerable portion of
the stock OF the Citizens Gas Co.
Of Indianapolis; The Panhandle e.
Eastern Pipeline Co. owns title to
the lines from the Texas Panhandle
to the Indiana-I Illinois state line;
the J. H Hillman Jr interests own
stock Of the KentuCky-Terre Haute
pipeline and the Kentucky Natural
Gas Corp, successor to the Ken
lucky Natural Gas Co.
The Hillman interests came into
title of the KentUcky-Terre Haute
line and the Kentucky company
when they became indebted to
them to the extent of about S5.000.-
600 for pipe used in construction.
The Kentucky Natural Gas Co.
gave HHman interest bonds secured
by its stock which the Missouri
Kansas Pipeline Co. has owned
The Kentucky Natural Gas Co. then
went into receivership and all its
property was sold by receivers to
satisfy debts.
The Missouri-Kansas Pipeline Co.
went into receivership which still is
pending in Wilmington. Del. Frank
Parish, former president, charges
this receivership was brought about
by the Columbia Gas and Electric
Co
Memoranda from The Times files
entered into the record quotes w.
G.. Mcguire, an Eastern promoter,
who has been active in gas negotia-
tons in indianapolis, in a type
written memorandum to Mr.. Parish.
on an interview with Mr. Eaton on
the gas situation in indianapolis
and Indiana. The memorandum is
dated May %. 1881. and Mr.. Parish
was president Of the Missouri Kan
sas Co.
Eaton Opinion Cited
Mr.. Mcguire quoted Mr.. Eaton as
saying he NIr. Eaton) then owned
$4,000 shares of the outstanding
10000 shares of the Citizens Gas
Co. stock. He said in his report:
The Citizens Gas Co. was" Mr.
Eaton said "a controlling factor in
the indianapolis gas situation. and
that while the city. due to a recent
court decision. would take it over.
the to-be-agreed price was not at
all definite
Il replied that my understanding
was S25 a share. plus accrued divi-
dend-roughly S2750 a share. His
retort was that that was what the
city thought. but the controlling
stockholders felt differently. He
then went on to tell me that the
Marion County Gas. Co. was in con-
troll of the situation in Indianapolis
and that A1iSSouri-KanSaS did not
have a chance. He assured me that
their affairs we're being handled po-
litically. very adroitly, and that, to
the best of his information, I could
not lose. I asked: Where did YOU
get your information from? Kirk 2
Kirk Manager of Citizens
The reference apparently was to
Clarence L. Kirk vice president and
general manager of the Citizens.
The legislative committee will
meet again at s tomorrow. It has
invited Mr.. Smith to appear, but
had not reached him early this
afternoon. Mr.. Smith had previ-
ouSly said he would be glad to
appear.