The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-01-30
G|VAN DENIES
WEISS CHARGE
AT GAS PROBE
Talk Was Misunderstood,
Insists Attorney for
Users Firm.
ADMITS DUMMY SETUP
Witness Remains Calm but
Refuses to Disclose
Real BaCkerS.

State Senator Jacob Weiss mis-
understood" their conversation,
Clinton Givan, attorney for the
Users Gas Co, testified today as a
voluntary witness before the spe-
cial legislative committee investi-
eating Marion County gas activities.
He denied that he had asked Sem
ator Weiss to become cO-cOunsel Of
the Users and denied, too. that he
had told Senator Weiss there was
100000 for distribution to Marion
County attorneys.
Senator Weiss. president pro TEN.
Of the Senate. yesterday told the
committee that, while q bill de-
signed to make it more difficult for
Users to obtain a franchise to OPP
crate in Marion County was under
consideration in the upper house,
Mr.. Givan had made both of those
statements.
Attorney Givan gave the commit
tee this information about the Users,
whose hackers never have publicly
identified:
It is incorporated for $500 with
500 shares of no par value stock
and the incOrporators. who put up
some money" are dummies" who
will turn over their stock to the
real owners when, and if, the city
and Users sign a contract.
Users will supply natural gas at
the gates of the city for 35 cents a
thousand cubic feet with 900 British
thermal unit quality. 1T was Mr..
Givan's estimate that transporta-
ton and distribution from the gates
to customers would cost approx
mately Z cents a thousand cubic
feet in additionO
Offers Loan to City
Users will lend the city $500 900 to
buy the plant OF the Citizens Gas
Co. and pay accrued dividends on
preferred stock and take as security
for the loan city revenue bonds.
Users will then for period of 10
years. on contract, supply natural
gas on the terms already quoted,
wit han option for another 10 years,
service.
Users now is operating franchises
in other communities, none in In
diana. and Users considers as vicious
the law passed by this Legislature
to make it more difficult for it to
obtain a franchise. It will con-
tinue its efforts, nevertheless, Mr..
Givan Said0
Lists Nominal IncorpOratOrs
Users engaged Mr.. Givan as at
torney early last summer. and II
was on his advice that Users did not
Immediately apply to the lnolana
Public Service Commission for per-
mission to enter the field.
Nominal incorporatorS of Users are
man named Minnett Of near
Bloomington. Ind; Marshall Ober-
holzer. paving contractor and
brother of Madge Oberholzer. for
whose death D. c. Stephenson now
is serving a life term IN prison, and
George Meyers, an attorney.
Users is in no way connected with
the Columbia Gas and Electric
Corp. and will not consider buy
inc Gas from it or any OF Its sub
salaries. although Users is in the
market for natural 6 s when, ana II,
il SIGNS a contract with the city.
Attorney Givan refused informa-
ton to the committee on certain
points on the grounds 1t was conf
dental information between law
yer and client.
Fails to Name Backers
He would not reveal the identity
of his hackers or their financial
status. He would not tell in what
states or for how long they had OPP
Grated franchises. He would not
tell where their natural gas supply
was to come from. especially refuS-
ing TO say whether it would be from
Indiana wells, but said the Users
geologist had assured them the
source was good for IS to 40 years.
Mr.. Givan would not tell, either,
what written agreements" he had
made for the supply of gas. but ad-
mitted Users had no contract With
any pipeline company for the IN
dianapolis market as yet.
He would not tell whether he
personally had an option on any OF
the 500 shares of Users stock, to be
exercised if the deal went through.
Tells Story Calmly
a calm witness; Mr.. Givan said
that he understood that the Column
bia Gas and Electric Corp. owned
about SO per cent of the Citizens
Gas Co. and he added that the
Citizens had violated its franchise
with the city when. with former
Mayor Reginald Sullivan. now a
member of its board of directors
as counsel. it was successful in 1921
IN obtaining an increase in the rate
Turn to Page Three