The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1903-09-20
DOLLAR GAS
FOR ST. PAUL
AGREEMENT REACHED
WITH GAS COMPANY
Reduction of Price to $1.15 Next Janu
airy and to 81 in 1907-Franchise
Commissions Report to
the Council.

1907, and extensions of the service to
st. Anthony Park will be what st. Paul
will get If the city council approves an
agreement made by the franchise COM
mission with the st. Paul Gas Light
company.
The commission, which was appoint
ed last December by the city council
to go over the whole lighting situation,
completed its report, which was pre-
scented Thursday evening to the assem-
bly,. The report discusses the whole
matter thoroughly, outlining at length
the situation and the negotiations of
the commission with the gas company.
No Municipal Plant.
The commission finds, after a thor
ough investigation, that an arrange
ment with the st. Paul Gas Light COM
pany for the extension of it's franchise
will be for the best interests of the
city, and the report contains an agree
ment made with the company for the
extension of it's franchise under terms
which the commission regards as sat
isfactory for the city, and recommends
its approval by the council.
The commission finds that munich
pal lighting plant is not feasible, be-
cause the city has not now either the
requisite authority to establish a plant
nor the power to raise the funds need
ed.
Company's Promises.
In return for an extension of it's
franchise for twenty-five years from
1907, the st. Paul Gas Light company
agrees:
To reduce the price of gas from $1.3O
a thousand feet to $1.15 Jan. 1, 1904; to
$1.10, Jan. 1, 1905; to S1.05, Jan. l, 1906,
and to 81, Jan. l, 1907.
The maximum cost of gas used by
the city for lighting streets and public
buildings is to be 81 a thousand feet.
the power to fix the cost of gas to
consumers.
The company agrees to extend, as
soon as possible it's service to st. An
thony Park.
After Jan. 1, 1907. the company will
pay gross earnings tax of per cent.
Settles Old Question.
If the council approves the agree
ment it viii settle the question be-
tween the city as to the duration Of
the present franchise of the gas COM
pany. The city has insisted that the
franchise ends in 1907, while the COM
pany has contended that it runs to
1850 The company valves it's claim,
and the commission points out in it's
report that thus, not only is the ex-
pense of a long fight in the courts
avoided, but the people will get the
benefit of cheaper gas almost at once.
ELECTRIC FranchISe.
AS to the electric lighting franchises
held by the st. Paul Gas Light COM
pany, no agreement was reached. The
city contends that these expire in 1907,
Whiles the company maintains that they
run Indefinitely. No common ground
could be reached on this point, and the
commission recommend that the city
prepare at once to begin legal pro-
ceedings, so that a definite decision
the question
the courts.
ST. PauPs Profit.
In case the recommendations of the
lighting franchise commission are
adopted by the common council, it is
estimated that the consumers of gas
III st: Paul will save between 100000
and $225,OOO in the next three years.
This amount represents the gross re-
duction which the gas company has
agreed to up to the time dollar gas will
be furnished, provided the council ex-
tends its franchise twenty-five years
from 1907.
Company's Position.
A. P. Lathrop, president of the st.
Faul Gas Light company, says his COM
Pany IS willing to make this concession
10 the people of st. Paul to clear away
any question as to the life Of the pres
ent franchise.
If we wished" said Mr.. Lathrop.
we might stand on the advice of our
attorneys and go to the courts if neces-
Safy. But we are anxious to have the
matter settled in order that we may
proceed with our business without a
light hanging over our heads
consider the agreement reached
between the franchise commission and
the gas company very advantageous to
the city in view of the fact that the
price of gas will be reduced immedi
ately. In case the matter should GO
into the courts the city would lose not
only the difference in price during the
next three years, but also during the
time of the litigation.Y
Extensions.
Mr.. Lathrop stated that in case the
council renews the gas company's
franchise the company will begin ex-
tensions of the mains at once. The
company will go after business the
same as any other concern. and will be
ready to open up new sections of the
city as fast as conditions warrant.
There has been a demand for extern
Slons In st. Anthony Park, but with the
franchise matter in an uncertain state
the company has not felt warranted in
complying with the demand. 1t has
not cared to increase it's permanent in
vestment with the possibility of a fight
on its hands at the end of three years.
Gas Inspection.
Regarding that portion of the COM
missions report giving the CITY the
right TO regulate the quality of ga
furnished, Mr. Lathrop said the COM
pany could have no objection to such a
provision. -- g
1t will not be good business policy "
ne SAID, for us to make an inferior
grade of gas. We are in the same atti-
tude toward the public that a merchant
occupies. We shall go out after bust
ness, and in order to get business we
must do everything in our power ro
please our patrons"
The report of the commission is said
70 be unanimous. The report is signed
by Assemblyman Howard Wheeler. AS
semblyman Michael Doran Jr., oscar
Claussen, M. P. Ryan and John 1T.
Mitchell Jr. The other two members of
the commission, Aid Frank Huber and
Aid. Otto Rohland, were not at the
meeting yesterday, so they did not sign
the report
The report of the commission fol-
lows:
The Report
To the Common Council of the CITY of
st. Paul: -
The undersigned were appointed in
the month Of December, 1902 as mem
Ders OF commission under the author
lty and with the duties imposed by tbe
following resolution