The Providence news. (Providence [R.I.]) 1891-1906, 1892-06-29
The COMMON COUNCIL.
The Original Form Of Contract with
the Gas Company Adopted.
THERE WAS A LIVELY DEBATE.
The Police Signal system for the Whole
p City-Tho Nsrrsgansett Electric Light
ing Goa Large Amount Of Routine
Business Taken UP and Disposed OF

The meeting of the Common Council
last night was devoted principally to the
discussion of the report of the committee
on special franchises and the substitute
form of contract affixed by Mr. Mccarthy.
The substitute was first discussed. and it
seemed that the Council favored 1t. but
when 1t came to vote the substitute was
defeated and the original report was
passed without change. Considerable
miscellaneous business was transacted,
including the receipt of the report of the
city engineer relating to the Fruit Hill
reservoir.
On motion OF Mr.. Vaughan the report
of the joint committee on special fran
chises, together with the resolution au-
thorizing the mayor TO execute contract
between the city of Providence and the
Providence Gas Company and the substi-
tute offered by Mr.. Mccarthy, were
taken from the table;
Mr.. Mccarthy offered several amend
ments to the substitute for the purpose of
making the language clearer, and they
were adopted.
Mr.. Barney moved the substitution of
the following paragraph, which Is part
of the original form OF contract, In place
of the one In this substitute:
ing the term aforesaid, after paying said
special tax. and after paying dividends to
stockholders at the rate of per centum per
annum upon the amount OF capital stock
actually paid in, and after making reason
able and prudent provisions for the main
tenancc and extension Of their plant apply
the balance of the net earnings OF said corpo-
ration to the reduction Of the price of gas to
consumers from time to time during said term
OF twenty years.
Following is the paragraph in the sub
cti infQnHaH tlA
ground:
"That from and after the date Of these pres.
ents, and until the expiration of the term Of
twenty years aforesaid, and of the rights and
the second part, or any party claiming under
IL. will not during said term pay a greater
rate of dividend than per centum per an:
stock now issued and outstanding, and on
such additional capital stock as shall hereafter
be actually subscribed and paid for In cash at
any and ali net earnings over and above said
average dividend Of per centum per annum
during the said term, and a cash surplus not
the then Issued and outstanding capital stock,
shall be applied by the party OF the second
part TO the reduction of the price Of gas and
cost of service and supplies to the city and its
citizens; but all extensions Of its plant here
out Of the proceeds OF the capital stock ac-
tually paid in and issued as aforesaid"
Mr.. Vaughan spoke against the substi-
tute form of contract, saying that the city
solicitor had appointed the original form
and the committee still believed it to be
the best. The gas company has now the
capacity OF producing three times as much
gas as the city can consume and should
not be handicapped as in the substitute
form of contract.
j. K. kendrick also spoke against the
substitute. He said that the gas OF the
PROVIDENCE gas company was OF better
quality than that furnished in most
cities and cheaper than In fifty cities In
the country. Nto
Mr. Mccarthy said that in the case of a
monopoly like the PROVIDENCE gas CON-
pany the city ought to be careful to note
what vested rights might be acquired.
The vested rights of the company were
discussed at some length, and 1t was
found that they depended entirely on the
agreement made with the city.
Tho Substitute Defeated.
After further discussion the substitute
was put to vote and defeated. only q few
besides Mr.. Mccarthy voting for it.
Mr.. Barney moved the insertion OF the
following in the original form OF contract:
And 1t is further agreed that said party of
the second part shall Mt its own cost and
charges move the location of its pipes in any
streets where the same may now or hereafter
streets upon reasonable written request whom
ever IL shall be necessary for the placing of
water pipes, the building or repairing Of the
streets or other municipal purposes OF said
city that the location of said pipes shall be SO
changed.
Mr.. Vaughan said that the franchise
act gave the city authority to order the
pipes up at any time.
Mr.. Barney claimed that nothing In the
act provided for the change of location of
any pipes already laid
The amendment was lost 0 to 49,
Mr.. Mccarthy moved the insertion Of
the following:
Provided, however, that nothing herein
shall be construed to give said COR
or any party claiming under IL, any
vested rights In said streets or highways In
addition 10 those which IL now has, IL any.
excepting for the term of twenty years afore-
said and subject to the conditions. restric-
tions. obligations and limitations aforesaid.
Lost 2to 15.
The Resolution Adopted.