St. Paul daily globe., 1888-08-21
NATURAL GAS DISCUSSED
By the Chamber Of Commerce at It's
Meeting.
EXCLUSIVE RIGHTS
Statement of the Purposes of I'll
Company by q. P. &
Hall.

~ y
ing that the state state fair matters We're
progressing very satisfactorily, and Shat
the manufacturers of the city of st.
Paul had agreed to make exhibits. sMr.
Van Slyke offered resolution thaethe
secretary be instructed to obtain copy
of the proposed ordinance on the subject
OF natural gas, now before the common
council, and that the same be, referred
to the committee on streets. Hs P.
Hall said that he desired to place Some
facts before the members of the cham
Der, so that the subject might be per-
fectly understood. He then made the
following statement:
For the information of the chamber
of commerce and the public generally ]
desire to submit brief statement.
The ordinance asked of. the city coun-
ell by the Minnesota National Gas. Oil s.
Fuel company is copy of the ordin-
ance given the st. Paul Heat and Pow
er company in September. 1886. That
ordinance expired Jan. l, 1888, but was
renewed by the council until july l.
1888, and has now finally expired. Con
Sequently the council has twice passed
upon an ordinance containing the same
provisions as the present one, without
protest from this body or any one else.
The gas is proposed to be for fuel and
not for Illuminating purposes and the
entire question invOled is one of secur-
ing cheap fuel in cold country, desti-
tute of coal and but sparseiy supplied
with wood.
The ordinance presented gives our
company the exclusive right to intro
duee natural gas for fuel purposes into
the city OF st. Paul for fifteen years, and
also gives the common council, after the
first five years, the right to regulate and
fix the price to be paid by consumers.
That the charges for the first five years
would be fair is self-evident, for other
pie to incur the expense of putting in
gas fittings and becoming customers.
The price of the gas must be made far
below that of wood OF coal for similar
service Or else the natural gas company
would be without business, and for the
first few and most expensive years to
the company. the price charged can be
safely allowed to rest upon ordinary
business principles. The succeeding
ten years the public are protected by
leaving the price absolutely to the city.
There does not seem to be anything
very exclusive about that, unless it is to
give the city an exclusive privilege far
more vital than an exclusive right to
lay pipes in the street.
am aware that the word exclusive"
recalls many things now regarded as
unwise in the past history of the city,
but it is, nevertheless, a word that need
not necessarily send the cold shiYers
courSing down the municipal spinafAOl-
umn. Bear i'll mind tilat until we lave
demonstrated. that we have gas in Saffi-
cient quantities to supply the city.The
ordinance does not become operative at
all, and that the utmost limit givens US
to make this demonstration is seven
teen months. If, in the meantime, any
one else should discover gas in proper
quantities prior to our doing so, the pro-
posed ordinance does not eStop the city
from making arrangements for its sup
ply from other parties, it being expressly
provided that the franchise, rights and
privileges do not vest iD our
company until the common coun-
ell is satisfied that we can supply
the city. Assuming that we have OBJ
tanned sufficient quantity so that the
ordinance can become operative, it is of
far greater Importance to the cityito
have it introduced than it is for the
company to bring it. The word .seX
elusive" does not have the same signifi-
canoe in this ordinance which it does in
the street railroad, gas light or other Or
dinanceS, for the reason that in the case
of companies with purely local busi-
ness they must have charters from the
city to exist at all. We are incorporated
under the general law of the state. and
if successful have the commodity known
as natural gas for sale as fuel. If, in
stead of selling our cheap fuel in the
immediate vicinity where it is found,
we incur the heavy expense of pipe
line to give its advantages to st. Paul,
we expect in return to have some assur-
ance that field will exist.
We are not dependent upon st. Paul
for our existence or the opportunity to
do profitable business, as are the COM
panieS which have brought the word
''eXcluSive" to such colossal proper
| tons. As citizens of st. Paul are chiefly
| furnishing the money for this develop
| ment, we naturally come to our own
| city to give our own people the priv
| ileges we hope to secure. If we are
| ever in position to make this ordi-
nance operative, it is favor we are eX-
tending to st Paul and not favor we
aro asking. There will be abundant
and profitable demand for more of the
| commodity than we are likely to
find. and it is simply question as to
what localities we can supply. We pre-
fer to place st. Paul IN the van if st.
| Paul desires to be there. We are en-
gagged in work which is so much of
"a public character that in reality it
ought to be conducted at the expense OF
the state. Probably our philanthrophF
averages up very well with that OF the
members of the chamber in the conduct
| of their private business. We are III
vesting our capital in this development
and taking the chance upon winning vi
losing.
There is certainly nothing 'exclusive,'
| about the opportunity we offer parties
to engage IN this work of development
and share with us in the risk of profit
or loss. The personal calls which have
made upon a large number of this
chamber attest this fact, and those who
do not care to participate themselves
should not place stumbling block in
| the way of those who are willing to Ell
gage in a great public enterprise. which,
| if successful, will be of more import
ance to the state than anything hereto
fore undertaken.
As compared with an sexclusive''
charter for some local business. our sex
elusive" feature bears the same relation
to the city which the millionI or
more dollars given to railroads for
the ''exclusive' property of the
companies receiving it. The 100000
given Mr.Ryan became his exclusive
property. We might properly ask a
cash bonus from the city for introduc-
ing so valuable an article as natural gas
as fuel, but we do not do so. We offer
the city the privilege of being the first
to share in our success, provided they
protect our interests in return for the
favor we extend.
mess proposition and that you may fully
understand the situation, l announce
that nnlesS we can have the field for