The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-02-06

A careful analysis of the results of
scores of inquiries into holding and
operating companies in New York,
Chicago, Ohio and Indiana reduced
the possibilities to the Universal,
whose announced purpose when it
was organized was to sell natural
gas to Middle Western cities to en-
able them to deliver gas for do
nestle consumption at approximate
ly one-half the present rates.
Clinton H. Givan, attorney for
the Users, the hackers of which
never have been publicly identified
by an officer or director of the COM
pany, repeatedly has said his COM
pany, splendidly backed, could de-
liver gas to the city gates so that
it could be distributed and sold at
retail at about so cents each 1000
cubic feet, whereas the price for
artificial gas from the Citizens Gas
Co. now is 81. O5 each 1000 cubic feet.
Refuses to Give Answer
Reached at his Mooresville Ond.)
home, Mr.. Givan refused to confirm
or deny that Universal was back of
Users. He said he was authorized
to make only those ~utterances as he
already had made and did not in
tend to overstep his authority in
the matter.
Universal was organized by B. A.
Needham 81 Co., which a year ago
represented to New York capitalists
that it had leases on gas wells in a
number of states.
Frank Vanderlip Jr., speaking for
his father, told a Times representa-
tive in New York that the older Mr..
Vanderlip had became interested,
but not financially involved, at the
time. The plan then was for Mr..
Vanderlip to finance issues of city
bonds sold to obtain capital to ac-
quire gas plants and franchises in
various Middle Western cities.
Confident of Support
The Universal then was to sell
gas at low rates. But, Mr.. Vanderlip
Jr. said. negotiations had fallen
down finally at that time.
Basil A. Needham, organizer of
the company, said that Mr.. Wander
lip had withdrawn from the ven-
ture because of Standard Oil Co.
New Jersey, but that if there
seemed to be a chance now of the
project succeeding, he believed Mr.
Vanderlip still would give his sup
port.
Mr.. Needham told The Times in
New York that last year matters
had advanced so far with the city of
Canton 90 that he Mr.. Needham)
took the mayor of Canton to New
York, had a conference with MI.
Vanderlip, and that they complet-
ed plans to definitely go ahead with
the project.
Interference by one of the large
companies dominating the field put
an end to the negotiations, he said.
Later a contract actually was signed
with the city of Akron, Mr.. Need
ham said, but it too was Cancelled
when interference from dominating
Lcompanies was encountered.
See Price Too High
Both Mr.. Vanderlip and Mr..
Needham said that the large COM
panies, through a network of pro-
ducing companies. pipe line COM
panies. wholesaling companies. and
operating companies, manage to
step up the price of gas through
out the Middle West to more than
twice what it should be.
Mr.. Needham said that in view
of the new Middle Western agita-
ton in the natural gas business, the
conference of Middle Western May
ors. he thought his hacker would
reconsider the possibility of pro-
ceeding again. if there was any
chance of a favorable press.
Meanwhile. the legislative gas
probe committee continued to hear
testimony from Luke Scheer, an
agent Of the minority stockholders
of the MisSouri-Kansas Pipe Line
Corp. now in r~eceivership.
Frank A. Parish, president of Mis-
souri-Kansas delayed for one day
his appearance before the commit
tee and will be here tomorrow.