The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1900-05-19
EDISON 60. REJECTS /.
PRESIDENT KENNETH CLARK EX-
PLAINS THE PURPOSE OF
THAT RESOLUTION
REGARDED SIMPLY AS A TRICK
Claims the Manhattan Has No In
tentfon Of Entering Into Com
petitiOn-A Foil for the
Council.
To the Editor of the Globe:

On Thursday evening the common coun-
Gil passed a resolution purporting to con-
fer on the Edison Electric Light and Pow
er company the right to lay conduits,
erect poles and string wires in certain
streets of the city, for the purpose Of
transmitting electricity. The resolution
provided that all privileges thereby con-
ferred upon or now possessed by the Ed
ison company should terminate Jan. I,
1907. It provided that, in consideration of
the grant, the Edison company should pay
into the city treasury annual tax or
license fee of per cent Of its entire gross
earnings, and that the St. Paul Gas Light
company should likewise pay an annual
tax Of per cent Of the gross earnings
of its electrical business. No privilege
was granted to the latter company by the
resolution. The concluding clause of the
enactment provides. in effect, that unless
both the Edison company and the gas
company shall accept its provisions in
writing within four days, the resolution
shall become void.
The streets covered by this resolution
are the same streets that are covered by
another resolution commonly called the
R1diIlldtIdH ItSUfuliOHi ItCcIiltJ pdSSHu
by the council and vetoed by the mayor.
BY the resolution last mentioned the coun-
Gil has attempted to confer upon the
Manhattan Light, Heat ard Power COM
pany the right to lay conduits, erect poles
and string wires in substantially all the
streets of the city. This resolution is, by
its terms, subject to the conditions pre-
scribed in the Manhattan franchise ordi
nance. and this ordir ance, as amended al
though 1t is very doubtful whether the
amendment In any way affects the res
| OlutiOn) provides that when the Edison
conn a~y or tha go S company shall becoma
obligated to pay a gross earnings tax TO
the city the Manhattan company shall
also be bound to pay a like tax at the
same rate. This resolution will come UP
for passage over the mayors veto on
Wednesday, May %. 1t is publicly an
nounced by It's advocates that the may
or's veto will be overrdden. The avowed
reason for passing the so-calied Eds
reEolutufon is that by SO doing the Edi-
son company is paced upon an equality
with the Manhattan company, thus in
surfing competition in the electric lighting
business and a considerable revenue % tn ;
city. That the reason thus stated does
AiOt S-N'i Go b4t- lCciI pun DOoS VI iISS VIII
designed this resolution and secured its
passage by the council will be plain upon
considering the following facts:
l. The authorized representative of
the Manhattan company have stated pub
liciy, both to committees of the council
ard others, that their company would
never invest a dollar in St. Paul If it
should be obliged to pay any gross earn
lngs tax whatever. 1t is evident, there
fore, that the course pursued cannot have
been taken in anticipation of competition
or of any revenre from the Manhattan
company. -o~es .t..
2. It is well understood that the Man
haitian company has never intended to
enter into competition with the Edison
company. The Edison company serves
a comparatively insignificant portion of
the city. Competition with it in that ter
Iit0ry would mean u rate war. Outside
Of that territory but within the limits
OF The Manhattan franchise. lie several
districts within which lucrative electric
lighting business may be done In these
districts competition will be with gas
and that competition, owing to the fact
that gas, al present rates, tar unders el S
even electricity at cost, would be one of
service, not of price. IT is clear that the
! gentlemen a the head of the Manhattan
company, who have proved themselves
more shIewd than philanthropic, will
| hardly permit their prices outside of the
competitive district to be made by a rate
| war within that district, particularly as
! it IS we'll known that the Edison COM
! pany has, during the past year, made
| such large investments in the introduce
/ ton OF water power current that extern
! sions Of its lines into, new territory. are
! fer the moment, out of question. Every
. citizen H-Eo is familiar with The gossip Of
! the c0u-t hOuEe and VIII IS t.ny bus
ness ecumen k.-Yms that nothing is far
/ ther from the minds of the promoters of
| the manhattan company than competi-
UON. Possibly their real motive may be
| explained by the fact that just prior 20
! the application for the Manhattan f.ar-
| pbicc INTENSIFIED in %
! Ediscn company were approached with
! the suggestion of a desire TO sell the
present Manhattan properties. a sugSe5-
ton that was not given the consdera-
ton to which the gentlemen making it
/ believed ii was entitled.
! The re6i purpose Of securing the pas
sa92 Of this E4t~on resolution was to en-
! able those interestcy6 in tie passage of
/ the Manhattan resolution over the may
: or,s veto to reply to their critics. IN G
/ offered the same terms to the Edison
! company that we offered TO the Manhat-
tan. 1t was loaded down with oner Gus
/ conditions in order that il might be Ger
! tain that the Edison company would re
! ieCt it. The Edison company has deter
mined to the end that neither the com
! mon council her the public may be led
! into any misconceptions OF the situa ton
! 70 ann unce it's purpose promptly and
| publicly 1t has prepared ard is sending
! to the common council a COnmunica ton
/ declining the pToffered grant. 1t has de-
termined 90 do this for the following rea-
! sons:
/ l. It's present franchise is unlimited as
/ to duration, subject perhaps to the COM
! ing into existence Of paramount and
+ inconsistent public interest. BY accept
ing this ordinance it would forfeit this
franchise at the end of six and a half
years.
3. 1t would be required to pay into the
! city treasury large tax, which it would
! be obliged to transfer through increased
! ,ates to its customers, while if the pro-
motors of the Manhattan enterprise are
| to be believed not a dollar would be in
/ vested or paid IL tax by the last-named
! company.
3. 1t dccs not care to lend itself to a
| trick
The Edison company viii oonfine itself
in the future to the enjoyment of such
rights as it already possesses. 1t wi |
| endeavor. as it has always endeavored,
| to treat its customers fairly. It will GER