The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1903-10-28
MICHAEL DEFENDS
HIS GAS FRANCHISE
He Wins Approval of His Audi
ence by His Discussion of
the. Subject.

oOuASo VI the council ana the represent
allVes or the several ward improve
ment associations sat quietly and lis
tened while Corporation Attorney ]. c..
Mlchael outlined and explained the pro-
VISIONS or the gas franchise ordinance
that ne had drafted at the request of
the council. He was frequently inter-
rupted by applause
NO attempt was made to hear from
any OF the outsiders, but before ad-
Journment arrangements were made by
Wnlch all citizens interested will be
given an opportunity to air their views
at meeting to be held two weeks
hence. Mr.. MchaePs explanation of his
ordinance was the feature last night.
Ihough the entire ordinance was read
by Mr.. Michael, he attempted to ex->
PAIN only those provisions that had
evoked pubic discussion. The first of
these was the 81 minimum charge pro-
posed by the councils committee, which
MI Michael in his draft had reduced
to 25 cents.
This change" said Mr.. Michael
seems hardly necessary of explana-
tlon. Ii you gentlemen had as many
caliers on this one point as have had
you would not ask for one. They to a
man opposed the 81 clause and 1 agree
with them. In my mind 25 cents is am
PIE. 1t is nothing more than a meter
charge and more than pays for the
Michael Was Not Joking.
In regard to the provision compel
ing the gas company to furnish gas to
al churches and charitable institutions
at one-halI the regular rate charged
some are Inclined to look upon the
Whole thlng as joke, but, gentlemen,
am In earnest. It is something that
need not stand in the way of the pas
sage OF this measure, as you are the
sore judges in the matter, but might
ten you II you demanded it you would
not De asking too much. We are not
company.
Let me tell you something Phila-
uelphla owned gas plant The peo-
pie tired of ownership, leased the plant
TO the CAST trust and here is what they
got: A graduated scale of prices, be-
ginning with 80 cents per 1000 feet
and finishing at rs the last ten wears
OF the lease, which was for thirty
years, the betterment of the plant to
the extent of $15, 100000; free delivery
annually for municipal purposes of
100000 cubic feet of gas, and the en-.
TIRE reVers1on of the plant with all it's
netterments to the city at the end of
the 1easea Does the city get any free
gas in the case of the local plant? Not
that know of. We are to pay for it
the same as any other consumer. r.
zine provision providing for the
saIe' OF all residuals, such as coke, to
the public generally at reasonable
prices, L understand is Objectionable
TO the company All will say is that
the provision is in answer to some
criticism from the public press a short
Lime back when the coal trust absorbed
all the gas company's coke and the
PUBLIC had no alternative but to pay
what the trust demanded.
Deposit Is Obligatory.
'0That the company should paw in
terest on the So deposit it demands
from every consumer will not quar-
rel with. The company, I am told.
considers g per cent excessive. 1t
says that 1t is more than the savings
banks pays Well,e I will answer that
Dy. saying thatodeposits in the savings
pank are not obligatory. They are, il
you want gas. ese inRS uO[ ii
Or all the provisions of this meas
lre, perhaps, the one to. receive the
most attention from the public press
IS that which proposes the reversion
OF the plant to the city at the end of
the franchise. Some think the 5 per
Gentlemen, the gross earnings tax is
fallacy. The consumer will pay the
tax, not the company. 81 zpC KS Z
b line gas franchise committee Ia
mented the fact that there could be no
competition. Here is where you can
get competition. Do not confuse it with
municipal ownership. Philadelphia
tired of municipal ownership and it
leased its plant. That is what I pro-
pose for st. Paul For the thirty
year lease of plant that was valued
at about S6,000,000 Philadelphia re-
ceived what was equal to S32,3 1926. 900
and its plant back at the end of the
contract. The competition for the
lease, L understand, was exceedingly
keen. us
1--WE are not getting a cent for the
use of our streets. If the company had
to rent private property for the dis
tribution of its gas it would have to
pay pretty penny"
What would we have to charge for
gas, then?' interrupted President La
throp, of the gas company.
WELL the fact that you propose to
charge 81 now Is evidence that you
have been overcharging for it in the
past" replied Mr.. Michael
There was much Misunderstanding from
the audience at this retort.
The gas company" continued Mr..
Michael, rs not here by the city's con-
sent. 1t was thrust on us by the leg
lslature and this is the first time we
have had a chance to talk to it. The
policy thatI have been trying to adopt,
is to break up the gas-lighting trust i'm
st. Paul. The gas council broke up
forever the street gasoline trust when
1t voted to own its own lamp posts a
few meetings ago, and here is where 1
want to see it free itself from the grip
of the gas combine. Own the plant and
lease it. If we have plant to rent we
are in a position to force competitive
bids for our street lighting. I do not
think this too much to ask of the gas
company. I am positive there are cap
italists that would accept the franchise
without bubble"
Mr.. Michael continued to enlighten
the audience as to the merits of the
provisions proposed by him and con-
cluded by saying:
81 do not know whether this is good
franchise or not he said. 81 have
given it my best thought, as 1 think
this is the one time when st. Paul
should provide for the future I have
been alone in this entire matter.
have been denied all conferences. No
one has come near me with a sugges-
ton. I prepared it the best I knew
how L rendered a conference TO the
other side, but it was not accepted.
am entirely in the dark as to how the
company views the franchise or what
provisions diSplease it,"
he onnPIIJci0f1 of