St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-08-26
CUTCHEON SHOWS FIGURES
To Prove That the Old Com
pany Can't Furnish Gas
Cheaper.
THE NEW CDMPANY'S OFFER.
Committee Seeks to Know Its
Observation-Disclosures
Session.


the franchise sought to be obtained by
Mr.. Pugh, of Chicago, yesterday, and
consumed the entire day listening to
both sides.
AT the morning session Mr.. Nickel
resumed his argument for the appli-
cants. and went deep into the question
of reduced gas prices, and the folly of
granting exclusive franchises. But the
committee was memorable Oh one point,
namely the responsibility of the parties
seeking the concessions. An executive
session was held for that purpose, the
result of which was for tine time with
held.
At the afternoon session Mr.. Cutcheon
took the floor on behalf of the ST. Paul
Gas Light company, and he Ibid not do
thing" to Mr.. Pugh, Mr.. Rev and
their allies, their English cousins. For
number of hours he held the floor, and
was listened to with marked attention.
In his argument he showed a careful
study of the situation. A salient point
was made when Mr.. Cutcheon, on be-
half of the ST. Paul company, made a
proposition. which the common council
was at liberty to take up at its own
pleasure, if it desired TO purchase the
entire plant
Mr.. Pugh's attorney rather scoffed at
the idea of the city buying the present
gas plant, as they had not the power to
do so until 1897. This objection was
promptly met by Mr.. Cutcheon, who
said:
81 am authorized by Mr.. Livingston
to say the present gas company will sell
| now to the city on the following basis,
taking the earnings of the company
since say Jan. l. 1898. up to Jan. l. 1895,
which covers as bad period of general
depression as we are ever likely to see.
| We will sell to the city at a price that
the net earnings will pay the city per
cent on the price they pay, and take in
payment at their par value the ~ per
cent bonds of the city of st. Paul. In
| other words the city would under this
proposition be able from the company's
business to pay all expenses, all inter-
| est on its entire investment, and have
| surplus the first year of ~ per cent
which surplus would equal about S40.-
OOO."
Some points in Mr.. Cutcheon's argu-
ment were:
Reductions in Price
| have been made by the st. Paul Gas
company from $3.50 to $3.50 per thou
! sand feet, and from $3.50 TO Sl.50 since
! 1856. The last reduction will save the
| city, upon the basis OF the present con-
sumption, at least $4,000 per annum,
and is applicable to 80 per cent of all
the consumers of gas, and al least 80
{ per cent of the entire gas consumption.
The present price of posts, for city gas.
is only little over S1.1O per thousand.
MIR. Cutcheon compared the prices
between st. Paul and Brooklyn as all
| illustration of the elements which enter
into any proper comparison of the prices
obtaining in different cities. The price
in Brooklyn is S1.25; in st. Paul. S1.50.
The consumption i'll Brooklyn is 3,467,-
100000 feet; in st Paul, approximately,
200. 100000 feet. Gas coal in Brooklyn
costs 1925 per ton; In st. Paul, $3.50. In
Brooklyn coal runs 2,240 pounds to
the ton; in st. Paul, 2,OO0. Labor
in Brooklyn, and besides. in the
latter piaces they are not subject to the
climatic changes under which St. Paul
labors. Last winter it cost the st. Paul
company for the alcohol to thaw street
lamps $1,000; to repair breakage caused
by frost and freezing, between $1,000
and $1,000, and it lost 26.000.00J cubic
feet by leakage. A much richer gas is
necessitated by colder climate. If the
same conditions obtained in st. P aul as
obtain in Brooklyn the company would
be willing. and would agree, to manu-
facture at 81 per thousand, and will
agree to do so when such conditions are
obtained.
Mr.. Cutcheon read Data from
Browns Gas Directory" showing
comparative prices of gas per thousand
and per candle power in many of the
principal cities of the Union. showing
that the price per candle power was in
st. Paul quite as low as the average.
lower than in many. He presented ar
gument showing that the difference is
most conspicuous in favor of the st.
Paul company when compared with the
plants owned by municipalities. He
proceeded to show that Mr.. Pugh and
his colleagues were unfamiliar with
the local conditions, and that the
prices at which they proposed to
make gas were impracticable. and
! dilated upon the fairness of the
conduct of the gas company'S business
and the general satisfaction which had
existed with reference to it; showed
that the appeal to the unemployed
which is made in the interest of Mr..
Pugh Is without foundation. as it would
take, in addition to the labor necessary
to erect the brick structure, only three
| 1E0 6ava IN Low fI,Q cad
all the cupolas and gas machinery
would have to be imported from
abroad and put up by skilled worlsmen.
also imported. That the st. Paul
company had always paid It's laborers
well, there had never been any strikes
or threatened strikes; a gas war, which
would inevitably ensue If a new com.
pany were to come into the city, would
have much more deleterlOuS effect
upon wages than the increased employ
ment of men would be beneficial. The
st. Paul company IS an absolutely
local concern, 95 rer cent of its stock,
and between half and third of its
bonds are held in this city. The granting
of this proposed ordinance, whether valid
or invalid, would depreciate the price
of stock and bonds and render them
worthless as collateral and would in
| jure the credit Of the company; it would
be stabbing in the back the prosperity
of the city, which is simply the COM
bined prosperity of its citizens. The
people applying for this franchise
Are Non-Residents
both of the city and of the state, about
whom we know nothing except mere
statement that Mr.. Rue lis a man of
wealth." and Mr.. Pugh ''has certain
English relatives whom he hopes to en-
bark in the enterprise"
Mr.. Cutcheon criticised the proposed
ordinance in detail, showing that it did
not provide where the gas works shall
be located. and that the point at which
1t had been stated in the public press it
would be located was impracticabe. He
| urged that the right of nnrchaSa rarn