The Saint Paul globe., 1903-11-13
not recompense the company. No, we
cannot accept the purchase provision"
Reversion Clause Is Absurd.

not recompenSe the company. No, we
cannot accept the purchase provision"
Reversion Clause Is Absurd.
The reversion of the plant to the city
at the end of the franchise period, the
city to pay only for extensions made
in the last ten years, Mr.. Taylor con-
Sidered absurd.
ooh, the whole thing is impossible"
declared Mr.. Taylor. "How about our
present Indebtedness? We have got
to pay what we owe if we go out of
business. Our revenue will not be
large enough to pay it all. If we could
charge what we wanted to we might
get back the value of the plant, but in
this case We are limited in what we
may ask for our goods. This provi-
sion would simply cause the consumers
to pay for the plant. We would be
compelled to exact it in order to come
out whole. You cannot guarantee us
anything. Instead, your charter COM
pels you to regulate our rates from
time to time. The acceptance of such
a provision. is simply impossible"
What about the city purchasing the
plant at the end of the franchiSe?" asked
Assemblyman Haas.
We have not authority to entertain the
proposition; answered Mr., Taylor.
rs s. not the gas company's plant bonded
torney Michael.
Yes, all our property is covered by that
amount" answered Mr.. Taylor.
And you have been doing business for
fifty years and have not laid by dollar
for sinking fund? And is it not true
that the company is capitalized not on
the value of it's plant. but it's earning
power?' queried Mr.. Michael further.
Mr.. Taylor Has Nothing to Say.
II do not care to discuss it, answered
Mr.. Taylor.
well, it is VITAL" said Mr.. Michael. Il
would like to have you bring your books
here and discuss the matter. I think
we could then reach conclusion much
quicker If you have failed in fifty years
to pay off your debt, during a time when
you could charge what you pleased, then
that is your funeral. During all that time
you have paid big dividends. You want
us to pay off that debt. say we are not in
a position to deal fairly with you or you
with US unless you come with your books
and show u.s.
The fourth and final point, the city's s
right to control the gas company's elec=
trio franchise which the company con-
tends Is without limit, was deemed just
: as impossible by Mr. Taylor as the
others. He contended that the city had
no right to take advantage of the COM
pany. because it thought it could.
THE electric light franchise sells Is tho not
are up now" said Mr. Taylor. ''You
! could not exact this same thing from any
other company. There is not so much de-
mand for electric light as you think. Ihe
ST. Anthony district is about where the
| most demand comes from and we will
agree to give that section reasonable
service on charter terms if you Will give
to the company that was recently formed
to operate in that locality franchise. we
are willing to make reasonable extensions.
''Oh you want two franchises, retort-
! ed Corporation Attorney Michael.
Aid. Corning Presses His Motion.
This concluded Mr.. Taylors reply for
the gas company to the points at issue,
| and with his retirement Aid Corning at
! once pressed a motion that outside par
ties be invited to enter the ST. Paul neld;
eve are wasting time" commented
Mr. Corning. 1.-The company has refused
every vital point in this controversy as
advanced by us. The only question is
whether we shall stand on the Michael
ordinance or not. I have studied the mat
ter and I have decided to stand by MI.
MichaePS measure.
II therefore move that Mr. Michael be
| instructed to prepare, without delay, an
electric and gas franchise and adVertlse
them for sale to the highest bidder Let
| them be sent out in the financial markets
: of the world and then we will know
whether the company'S contention that
no one could operate under such an ord1-
nance and live, is true or not. They say
no one would accept such an ordinance.
Let us try"
| Mr.. Haas quickly seconded the motion,
and it was here that the timely Interrupt
tion of the Bennett communication saved
| the day for the gas. company.
Opposes 81 Minimum Charge.
! Assemblyman Haas announced that he
would not stand for the 81 minimum
| charge. ''There is no justification for
it, he said. "It falls on the poor"
President Lathrop fastened to explain
| that the rich would really be affected in
stead of the poor, but Mr.. Haas insisted
| that the charge was not right whether
rtU pac rich or
| Before adjournment a proposition was
made to turn the whole matter over to
| committee, but Assemblyman Doran OBJ
| jected He thought it was matter in
| which the whole council should have a
| voice.
The next meeting will be held Tues
| day evening, Nov. "a. In the meantime
| the legal department and the gas COM
pany will consider the points at issue.
The meeting was attended by many out
! siders and much interest was manifested
| in the proceedings. A number of the city
! improvement associations were repre-
| sented.