The Saint Paul globe., 1903-10-04
FAvoRs A MUNICIPAL PLANT.

To the Editor of The Globe:
have read with much interest the re-
port of your council committee upon the
gas question and would like to comment
thereon as follows:
First-You object to city ownership be-
cause 1t would require the consent of the
legislature to issue bonds therefor and
general act for that purpose would have
to include the other cities of the state Of
the same class, Minneapolis and Duluth
and might be opposed by them. Since,
however, Duluth has very successful mu
nicipal gas and water works and since
Minneapolis has the reputation of being
progressive and liberal, it seems to me un-
likely that they would stand in the way
of municipal gas or electric light plants
in st. Paul.
Second-The committee reported that
the present gas g company has a franchise
until Jan. l, 1907, and nothing could be
done until then in securing cheaper light
save by consent of the company and in re-
turn for an extension of franchise. Unless,
however. the laws of Minnesota are very
different from those of most states, your
city would have the right to tell your gas
company that it would buy outfits plant on
payment of its structural value plus the
profits thereon above some agreed upon
rate of interest like per cent that might
be earned prior to 1907. That is, the city
might offer to have some disinterested
parties investigate the books and business
of the gas company and determine it's
probable profits during the next three
years., deduct therefrom interest on the
structural Vdlu6 AT 4 per cent anu con-
slider the balance the net earnings which
the company might be offered in addition
to the structural value of its plant. In
fact the city might add or 10 per cent
to this as payment for good will or for
securing an established business. The
company would do well to consent to this,
since it would have nothing left in 1907
except such price as it could obtain for its
tangible assets if 1t did not meantime
secure a renewal of its franchise. 1t Is
almost certain that if it did not secure
franchise it could not sell these assets for
even their full structural value. If, how
ever, the company refused such a fair
proposition from the city as is outlined
above, then the city would be in position
to construct its own plant. AS soon as it
had supplied in that way a few miles in
the heart of the city the private company
would undoubtedly be very glad to accept
a much poorer proposition than the one
just suggested.
Third-The experience OF Duluth in the
gas business, and of several Minnesota
towns in electric light to say nothing of
results elsewhere, might well stimulate
st. Paul to go ahead with a municipal
plant 1t is possible that the city could not
afford to sell light much cheaper during
the next five years than the company pro-
poses, but the processes of gas manufac
ture are being constantly cheapened and
its uses for fuel are rapidly increasing, so
that there is every prospect that the city
would make large profit out of the bust
ness long before 1882. at the prices offered
by the company, and could doubtless af
ford to sell at a materially lower price by
1910 or 1915.
Fourth-The movement toward munich
pal ownership and operation of lighting
plants is occurring so rapidly that it real
Iy seems too bad to think of ST. Paul de-
liberately binding itself for the next thirty
years, or during the lifetime of the major
fly of the present voters. to the continu-
ance of private ownership of the gas plant
If any extension of franchise is granted it
should only be on condition that the city
at any time could buy out the plant on
payment Of its structural value plus 10
right by petition of a certain percentage
of the voters to vote upon the same so
that the whole matter might be inde-
pendent Of purchasable or too easily in
fluenced city council. such as any city
may at any time be afflicted with. Very
truly yours,
Edward w Bemis
Superintendent Water Works.
Cleveland, Ohio, Sept. 80, 1903.