The record-union., 1897-06-29
GAS ORDINANCE VETOED.
MAYOR HUBBARD OBJECTS TO
THE PRICE ALLOWED.
He Holds That Natural Gas Can
Be Supplied at 81 Per
1000 Feet.

Mayor Hubbard sent the following
message to the City Trustees last even
ing:
To the Honorable Board of Trustees:
l herewith return to you, without my
approval, Ordinance No.. entitled,
AN Ordinance granting a franchise to
the Sacramento Natural Gas Company,
a corporation, to lay down mains and
pipes and connections Herewith, in and
through any and all the streets and al
leys of the city of Sacramento for the
purpose of supplying natural and car
bureted gas to said city and the inhab
itants thereof
This matter of granting franchises for
commodities which are to be purchased
by the residents of the city and for
which they must pay, should receive
your very careful and intelligent con-
sideration. 1t is no small favor to grant
any corporation the use of all of the
streets Of our city for fifty years. The
rights of our citizens should be care
fully considered and protected
This franchise is prepared wholly in
the interest of the corporation asking
for the grant. While it is plain that this
corporation should be granted a fran
chise. SO that it may be able to dispose
of the gas which it has developed, the
ordinance should be drawn so as to pro-
vide for all contingencies, and every
thing important appertaining to the
granting of the franchise should be en-
bodied in it. No statement or prom
ises on the part of the promoters of this
enterprise are of any validity, unless
IN bo +l,,1
franchise.
Soon after the parties who now con-
stitute at least a portion of this cor
poration developed a flow of gas just
south of the city, they called to see
me about getting franchise, and at
that time they particularly insisted
that they could not afford to pay a per
cent. of gross receipts to the city, be-
cause they were only going to charge
the citizens 81 per 1000 feet
for the gas. This ordinance
provides that they can, and
no doubt they will, charge 81 10 per
1000 feet. They claim that they have
this extra ten cents per 1000
feet because the State law pro-
vides that after five years they must
pay at least three per cent. to the city.
Now, this is not fair to the citizens of
Sacramento. In Stockton the price of
natural gas is but 81 per 1000 feet,
and there is no reason why it should be
more here. l think that if the price is
fixed at 81 10 they should be required
to pay all of the 10 per cent into the
City Treasury.
This corporation will have five years
within which to run before they will
have to pay the city one cent for the
use of our streets. The corporation
may contend that it's bid was accepted
at three per cent, and that, under the
law, it could not increase the amount
mentioned in the ordinance granting
the franchise, but on this point I beg
to differ with it. The rate could not
be less than three per cent but it can
be fixed as much higher as your hon
orable board may make it, and it may
either accept or reject the offered
franchise on such condition.
The matter of gross per cent. is not
of SO great Importance to this corpora
tion as it is to the city, for in fixing
this per cent. you establish prece-
dent by which you are to be guided
in the future. You secure the city an
interest in the business which is, or
may be, of some value. The ten per
cent which it adds to a fair valua-
ton will be collected from the citizens,
and it is no more than right that this
ten per cent. should go into the City
Treasury, instead of it's being absorbed
by the corporation.
If this corporation could have af-
forded to furnish gas at the rate of 81
per 1000 feet, it certainly is not ask
ing too much of this company to pay
ten per cent. of it's gross receipts to
the city when, under the franchise, it
is allowed to make a charge of 81 10
per LOCO feet, and under the circum
stances I must insist that it should
either make the rate 81 or leave it at
81 10 and pay the city the ten per cent.
I have prepared and herewith trans
NIT to you another proposed ordinance
which will cover this and some other
which 1 find in the original
ordinance, and L recommend that you
do not pass the first mentioned ordi
nance over my objections, but that you
do consider and pass the one herewith
presented to you. Respectfully sub
mitted, G. H. HUBBARD, Mayor
On motion of Trustee Devine, the
message was received and laid over for
one week.