Kansas City daily journal., 1897-02-10
VETOED, AS EXPECTED.
Mayor Jones Does Not Agree With the
Council and Disapproves the Gas
Consolidation Ordinance

As foreshndowed by The Journal. Mayor
Jones has vetoed the gas consolidation or
dinance. In his message, filed with the city
clerk yesterday. the mayor sets out at
length his reasons for vetoins the measure,
the chief of which is that in the event of
municipal ownership the city would have
to pay for q plant largely duplicated.
A canvass of many members Of the coun-
cit Shows that the ordinance will in all
probability be passed over the veto at the
meeting tomorrow night Couucilmen ST.
monds. Beroth. Burrows, Wolf. Craig.
house, have announced their intention TO
vote for the ordinance Speaker Smith and
Councilman Lynch viii vote to sustain the
veto. '..
Aldermen Wyne. Eyssell. Johnston. Nor
rison, Morgan. Munson. Jewell and Seldom
have declared they will vote for the ordi-
Brown are counted on TO sustain the
mayor.
The veto message is as follows:
Gentlemen of the Common Council:-I
return herewith. without my approval, an
ordinance lNo. SeSS) giving the consent OF
Kansas City to the Missouri Gas Company
and the Kansas City Gas Company. and
each or either of them, to sell. transfer
and convey their respective gas works.
franchises and property of every kind to
corporation to be organized under the laws
of this state, its successors and assigns, or
to each other; and authorizing such corpo-
ration, IT'S successors and assigns, TO ac-
quire. purchase. own. hold. sell. convey.
mortgage, cucumber, manage, operate and
maintain sucn works, franchises and prop
critics, i'll all respects and to all intents and
purposes as q single united property. plant
and system. subject to all the terms. pro-
visions and conditions in the respective
franchise ordinances under which said gas
plants and properties are now being oper-
ated and maintained.
Since the passage of this ordinance by
your honorable body / have given patient
consideration to the reasons urged for its
enactment by its supporters, many of
whom are our leading citizens, and. were
considerations of personal regard for its
advocates TO control my official action, L
Considerations of public policy which look
to the greatest good to the greatest num-
Der impel me to a different course. and it
becomes my duty under the charter to
state the reasons for my action.
The franchises granted these companies
in 1895 are alike in all essential particulars.
The maximum price for gas supplied pri-
vate consumers is fixed at 81 per 1000 cubic
feet, and for street lighting at $l2 n lamp
lamp per annum under another schedule.
No privileges are required to be given con-
sumerS except that connecting pipes are
TO be brought inside of the curb lines at
the expense of the companies. Each fran
chise runs for thirty years from the date
| OF its acceptance.
| competition in its proper sense has existed
| between the two companies so far as the
| price of gas Is concerned, In view Of the
| extremely low rate charged by one COM
| pany as compared with the other. yet in
| the matter of privileges to consumers, such
| as putting in service pipes from the curb
| lines to houses without cost and the free
| use of gas stoves. there has been COM
| petition on an equality. The beneficient
| results of competition in these matters Is
! apparent. No one doubts that the passage
| of this ordinances Acreates practical no
nopoly of the business of supplying gas
| in this city for the lifetime of a genera
| tiop, at the maximum rate permitted to
| be charged the city and private consum-
ers, and will be followed by the withdraw
given a @ sons Consumers. n @ II; II &C competition IS to be
| destroyed the possibilities of reductions in
| the cost of producing gas within the next
| thirty years seem to me to call for a re-
| ouirement that the maximum rate be ad-
| justed by arbitration or otherwise at in
| tervals of five years during the life of the
| franchises.
| at is urged that the present competition
| is running one competitor and that 1t will
| be compelled to withdraw from the field.
| but l think official action should be based
| upon existing facts and not upon con-
.ingencies which may arise hereafter.
| 1T is further urged that sentiments OF
| gratitude toward the Missouri Gas Com
| pany, as being solely Instrumental in bring
| ing about dollar gas. should override other
| considerations and cause the city to give
| its consent to the proposed consolidation.
| While ! have no desire TO disparase the
| efforts of the gentlemen connected with
| that project toward bringing about re-
\ duction in the price of gas. yet the facts
! are that on February 6. 1895. your honor
| able body passed an ordinance reducing the
| price OF gas TO Sl. oU uHS %. 1910. InS Su-
preme court rendered an opinion terminat-
! ing the corporate existence of the Kansas
| City Gas. Light and Coke Company, tho
| by obligfng It to procure new FRANCHISE.
| ON August "a 1895. the new franchise was
| granted TO the Kansas City Gas Company.
/ In view of the ordinance of February i.
| 1895 it is not probable that your honorable
| body would have granted this franchtse
| without fixing the maximum rate at 81,
| regardless of the fact that another COM
| petitor was in the field. Apart from SEN
| timental considerations investors of cap
| ital in our midst giving large employment
to labor deserve just and considerate treat
| ment at our hands, as matter of business
| policy. This ] stand ever ready to give
when the public good. as | view 1t, is not
sacrificed; In the present instance. l think
| great to be conferred without considera-
'The gravest objection have to the or
dinance is found in the formidable OBJ
| stacle 1t places In the way OF the city ac-
| qtlring the gas works by purchase. Each
| city. at any time after the expiration OF
! twelve years. may acquire the gas works
| by paying the value thereof, such value to
be ascertained by one of the judges OF the
| circuit court If the parties cannot agree
| Each franchise provides that lin estlmat-
| ing the value of said works. the said judge
in money. at the time of making said esti-
mate. of the lots or grounds, buildings,
| pipes, lamps, lamp posts, apparatus, works
| and fixtures of said grantees in said city
and adjacent thereto In Missouri, and all
! other property of every kind owned or con-
| trolled and used by said grantee. and nee
| essary to the manufacture and distribution
| of gas by said grantees in said city"
The Missouri Gas Company claims to
have expended 81, $4,000 upon its plant. or
| this amount 1t is safe to say that IL 900. 900
has been invested in Implications of the
| plant Of the Kansas City Gas Company.
Under present, conditions the city can pur-
chase either plant and thereby acquire a
complete system. Should consolidation be
effected. az proposed by this ordinance.
| when the city acquires the. gas works 1t
| will be required to pay for all the property
of both companies. Besides. the city being
| required to pay million dollars for prop
/ erty Ii does not need. the constitutional
| Limitation upon the debt-making power of
the city may require the postponement OF
! muEicipal ownership OF the gas works for
| many wears before so large an obligation
can be legally assumed.
THE trend of current events Is strongly
in the direction of the ownership of nat
| urai monopolies by municipalities as tho
surest relief from oppressive exactions-
| Our own experience with the water works
and the experience of other municipalities
| with like enterprises demonstrate the faod
| that in efficiency and economy OF operation
| with private ownership. | cannot give my
| assent to any measure which may embar-
rass or postpone the acquisition OF gas
~0fAS OS 'iJ JAMES NJ. JONES. Mayor"
President r. NJ. Snyder. of the Missouri
| Gas Company. said last night OF the veto:
1.-The mayor defeats the very object of his
| veto. so far as municipal ownership IS
| concerned. At present there Is very little
| duplication and only so much as can be
| used to good advantage. But IL both COM
| panies 90 ahead extending their plants
| there will be duplication in reality and the
| CITY. when 1t comes to buy, will have to
/ =. .t,oy, dc nr will hat