The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1903-07-02
NOT YET FIXED.
Natural Gas Franchise Still in
Air.
Ways and Means Committee of
Council Discusses 1t.
QUESTION OF DEPOSIT.
Mayor Bergundthal Says He
Fears a Graft.
People May Get Fifty Cent Gas
Sometime.
QUESTION OF DEPOSIT

Although the ways and means COM
mittee of the city council is disposed
to be friendly to the proposition adj
vanced by S B. Rohrer and N. B.
Burdge to bring to Topeka a company
which will build a pipe line through
which so cent gas will be furnished, it
appears probable that before the fran
chise is granted there will be some sort
of hitch about the requirement, which
the city wants to make, that the new
company put up a cash bonus of good
faith.
One side or the other will have to back
down from position it has already as
sumed upon this proposition. The ways
ana means committee of the council
talked the franchise ordinance over
with n. B. Burdge, its promoter at a
meeting Wednesday night. 1t developed
that the councilmen were anxious to
encourage the construction of a pipe
line from the gas belt to Topeka. 1t
would be a desirable way out of the
present gas rate difficulty
Mr. Burdge had signified his willing
ness that the ordinance REQUIRE new
mains to be laid in alleys but inter-
posed an objection to being restricted
TO that because a consolidation might
be erected whereby the new company
could secure the gas mains of the pres
ent company. AS the new scheme has
taken no tangible form yet the Excel
Slor people are not worrying over their
new competitor for business. No nego-
tiationS have been opened between the
two interests.
Mr.. Burdge said this morning:
we do not propose to put up a cash
bonus to insure the commencement of
work within given length of time or
to insure its completion. We can not
tell what difficulties we may encounter
which Will prevent the completion of our
project. We can not afford to have S.
900 tied up in that way when we need it
ourselves. We have formulated our ptan
for organization. Three other Topeka
men besides Mr.. Rohrer and myself ara
interested, two Kansas City men, three
Illinois men and two from New YORK
are ready to invest money in it. There
Will be no hitch in proceedings VIII al
we get the charter. 1t will take a long
time TO build the proposed line. 1t is
our plan to invest 100000 cash in it, and
issue bonds to the amount of $500 0cU.
We expect to capitalize at $1,000, 000''
Three members of the council, MeSsrS.
Wolf. Weber and Blossom, and Mayor
Bergundthal and City Attorney Spencer
today expressed themselves in favor of
exacting a guarantee deposit in money
from the gas line people before franchise
was given. Mayor Bergundthal said:
If this is a bona f1de proposition and
Mr. Burdge and Mr. Rohrer intend to
carry it through 1 do not believe they
ought to hesitate about giving the city
this assurance of their good faith. 1 do
not think the council is justified in vot-
ing away this franchise on the basis Mr.
Burdge has proposed. If the constEuc-
ton of such a pipe line is practicable
some other company will want to do it
before long. There will not be room for
two companies here. The company
holding the first franchise can use it
simply for the purpose of holding up
the second company. In giving away
this franchise we want some assurance
that the city is going to get something
back for it. We want some evidence
that this company is not going to use
the franchise for graft or to hold up
someone else for money. I have been
told that a separate company of men
were projecting a similar line to Topeka
from the gas belt So far as 1 know
both Mr.. Burdge and Mr.. Rohrer are
sincere in their intentions and promises
but the city can not afford to make its
business arrangements upon such a
superstition"
City Attorney Spencer, who will re-
vamp the draft of the ordinance sub
mitted by Mr.. Burdge. said in regard
to the bond feature of franchise grants:
Il have been quoted as saying that 1
did not believe that the section of
franchise ordinance requiring a guar
ahtee for the completion of work within
a certain time could be enforced in the
case of an attempt to collect on for
feited bond. In my opinion what the
city should do. if it wants a guarantee
at all. would be to require the new
company to place in the treasury
cash deposit. It's hardly likely that the
company would ever be successful in
recovering money so placed even if it
made the attempt. II isn't so much the
question of the legality as the practica-
bility of it.
"Of course it's none of my business what
the council decides tc do about this, end
I don't know what they viii do My per-
sonal opinion is that the promoters of this
gas line ought to be required to make such
a cash deposit. That's how 1 feel about
it -
The ordinance is likely to De talked over
freely before it is regularly presented to
the council. It is not impossible that Mr..
BuTdge may be able to persuade the city
OFFICIALS into his way of looking at the
proposition as very friendly feeling ex-
lists between the two sides. Mayor Der
gundthal is inclined to the opinion that
the natural gas can be furnished at
lower price than so cents per 1000 cubic
feet When the people of Topeka are COM
RELIED to pay $50 for gas there ought not
to be much hagsling ABOUT allowing
company to supply the people Tor 80 cents.