St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-08-25
If the New Company Is Per-
mitted to Establish Itself
Here.
BEFORE THE COMMITTEE.
Both Sides Are Engaged In a
Hot and PPotraeted
Struggle.


were present Aid. Kartak, Lindahl and
Murphy.
Mr.. Pugh, who Is asking for a fran
chise for a new gas company, was
present, with his counsel. Mr.. NickelI.
Mr.. Cutcheon was also On hand, with
Court Stenographer HiiIman, to look
after the Interests OF the st. Paul Gas
company. The latter, claiming an ex-
elusive franchise, does not propose to
sit idly by and allow the granting of
another franchise during the lifetime
of its own concessions. Assemblymsn
Robb and Parker were interested listen
ers to the proceedings, although not
participating in the deliberations of the
committee.
The GLOBE has already to some con-
siderable extent published the terms of
the proposed new franchise. Yester-
days session was opened by reading the
same in full. After the reading Mr..
Brady asked Assistant Corporation At
torney Chaplin whether the city would
be liable for damages if the st. Paul
Gas Light company would bring suit,
Claiming an exclusive franchise.
Mr.. Chapiu stated that the question
was complicated one, resting OH many
decisions and more recent devel op-
nents. He had no desire to pass upon
1t without first living several days to
consider it carefully.
Mr.. Cutcheen-If the charter of the
st. Paul Gas Light company confers an
exclusive franchise, and the city know
ing this grants another franchise to Mr..
Pugh or or others and an action for
damages arises. the city would be liable
for damages, the same as in an action
for slanderof titles @a
Nickell-A recent decision in Henue-
pin county holds that there the COM
pany accepted its privileges subject to
future actions" Mr.. Nickel then took
up the arg ulnent for the granting Of
franchise to the applicants, saying: sin
the first place it would be great benefit
to st. Paul to have large sumof money
invested here and added to the taxable
property. If this new, company cannot
give satisfactory security that it Will do
as it promises. then there is no use to
consider the matter. In Minneapolis
we have for some months past consid-
cred the cost of gas, and 1t is proper to
bring all light On on this subject to the
knowledge of the city council If a
lower price for gas eau be secured 1t
would be benefit to the public. In
Minneapolis we have reduced the price
Of gas 80 cents per thousand. thereby.
saving the people annually the sum of
$4,000, which remains in the pockets OF
the people The prices paid for gas
are only governed by artificial condi-
tions. sn 49,
Mr.. Brady-It is the sense of this conn
nrittee that before we proceed to the
fuller consideration of questions of de-
tail, we desire to know who we are deal
ing with, and as to the responsibility of
the parties seeking this franchise.
Mr.. Niekel-I confess that 1 do not
know any more about that matter than
the members of the committee. The
first L knew of this proposition came by
information in a letter from Henry G.
Row, of Chicago. That gentleman.
seems to be behind this movement, and
he IS rated to be worth from $500, 600 to.
s700.0o0 Mr.. Pugh. who appears pri-
mariiy on the face Of the new franchise,
represents some English and French.
capitalists who desire to invest their
money here and In this enterprise.
Brady-That is what we will have to
have as basis for further considera-
tons and for a basis upon which to
work. -.
Mr.. Cutcheon-It seems to me that if
this franchise is granted, there will be.
long-drawn-eut litigation, and it will
be long time before any one can COM
mence operations under the franchise,
especially if ali action to enJoin them
should be brought. 1t occurs to me
that the board of aldermen should ill.,
quire of Mr.. Pugh and his associates
what amount Of actual security they
may be willing TO deposit.
Niekell-I believe that the local
courts will have exclusive jurisdictions,
and that six months, at the longest,
should determine the matter. But if, as
Mr.. Cutcheon suggests, the fight should
extend over number of years, it would
be unjust to ask these gentlemen TO tie
up their securities for that length of
time. PEOPLE need all Of their seeuri-
ties at such a time, and believe good
personal bond to be sufficient.
Brady-l repeat that the first thing
we wish TO know is, who are we dealing
with. The matter and amount of secur-
ity can be fixed later.
Niekell-I am advised that Mr.. Row
is the man who has sent Mr.. Pugh here
to represent him in securing this fran
chise.
Mr.. LivIDgston-We have made dill
gent inquiries, but have failed to secure
rating Of either in any commercial
agency.
Nickell-I believe that Mr.. upham is:
fully advised as to the matter. and Mr..
Pugh can 90 out and get him to come
here.
\ After an absence of half an hour Mr..
Pugh returned and brought letter
from Mr.. Upham, which was read to
the committee. It was as follows:
Frank Brady, ESQ.,. President of the
| Board of Aldermen-Dear Sir: X. 81.
Pugh comes here from Chicago highly
recommended. I believe he has strong
backing financially and can make sat
isfactory bond. Very truly yours,
III. p. UPHAM.
After the letter had been read Mr.,
Nickel was allowed to proceed to ex-
plain the various results obtained by
the gas investigation at Minneapolis,
especially from clippings and reports on
| gas manufacture aud prices of gas In
other cities. He presented to the COM
mittee q petition which, he said, had
| been signed by over 5000 people Of st,
Paul, asking that the franchise be
granted to the new company ON a
proper basis. All had also signed their
| addresses, so that 1t would be easy to