Indianapolis Times, Indianapolis, Marion County, 21 June 1940 — Page 7

ww enw sure ly ness re

CITY ASKS NEW | HEARING IN GAS LEASE. APPEAL

ontends Court Decision Would Impose Huge Liability. § The recent Federal Court of ApBeals decision that the City-owned feves utility is bound by a lease exuted by “its predecessors would 4impose a $45,000,000 liability upon e City,” according to Indianapolis ity attorneys. They. included this contention in 4 petition for rehearing filed yestery at Chicago.

* The City. contended that the]

Gourt’s decision denied to the defendants the due process of law guaranteed by the Constitution and posed upon the City a liability r future rentals of more than $45,0,000 under a lease which did not ve the sanction of any proper unicipal ‘authority. : The Circuit Court on June 6 reversed Federal Judge Robert C. Baltzell and held the 99-year lease af Sept. 30, 1913, was valid. The Gourt also held that a coercive dgment for unpaid interest cou- ) ns be entered against the City. 3 " Could Be Declared Invalid

* At the same time the Court held that if the lease was improvident dr burdensome it could be declared tp be invalid. This action denies the defendts “their day in court,” the City claimed, because the court here reserved for future determination the question of the burdensome character of the lease. The defendants cbntend that the City should “undoubtedly have the right to be heard on this issue before the lower courts i§ directed to enter final judgment ggainst the City.” ¥ “The Court erred in holding that the lease was enforceable against the City,” the brief contended, “because the City never executed it nor

signed it; was not a party to it;

was not named as a party obligated; was not an assignee; no municipal authority having the power to do so ever authorized the execution of the lease, ratified it, or agreed to be bpund by its terms. ; Officers’ Power Limited ““The Court erred in not holding the lease invalid because the Acts of the General Assembly expressly limit power of City officials and City departments fo contract for furnishing utilities longer than 25 years.” : The City also claimed that in dictating a coercive judgment the résult would be that revenues raised

by taxation would have to be applied ||

in payment of rentals under a lease which had no municipal sanction. “No such result can possibly be authorized by any statute or reported decisions and is in direct conflict with the terms of the lease itself,” the petition contended. As executed between the Citizens Gas Co. and the Indianapolis Cas Co., the lease provided for the annual payment of about $500,000 by

Citizens' for the use of the Indian- :

apolis Gas Co. properties. The lease also provided for payment of $120,000 annually as a 6 per cent dividend -on the $2,000,000 of outstanding common stock of the Indianapolis Gas Co., 5 per cent on outstanding bends totaling $6,861,000 and all taxes on Indianapolis Gas properties. When the City acquired the Citizens’ Co. it refused to be bound by the terms of the lease. In 1936, the Chase Ndtional Bank of New York City, representing some of the bond-

holders, sued to enforce the lease.

AMERICANS NEED NO CANADIAN PASSPORTS

The Indianapolis passport office has received notification from the State | Department that American citizens do not need passports to go to Canada or Mexico. The| letter—from Mrs. R. B. Shipley, chief of the passport division in the State Department—said: “American citizens desiring to travel in Canada or Mexico are not required to have passports, but they should have documentary evidence to prove that they are American citizens.” The locak office said that the best sort of documents to prove Amerjean citizenship are. birth certificates or vote registration cards.

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Sale! Women’

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White Footwear

Children’s Summer

FOOTWEAR

$749

Sale Price

Boys’ and Girls’ Oxfords and Straps. All leather. Good looking. New patterns. | Sizes 81% to 3. $

brown,

Men’s Tropical

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88:

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Boys’ Sport ENSEMBLES

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Boys’ WASH SLACKS

79:

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: 19°

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