The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1904-03-25
CITY NEWS.
RETAILERS HAVE
PLANS in. DETAIL
THEY ARE SATISFIED THEY CAN
OPERATE LIGHTING PLANT.
Merchants Have Such a Company In
indianapolis and 1t Has Paid-The
Old Company Made Competitive
Rates-Lost Large Patronage, but
Still Increased Its Gross Business. /

Promoters Of the proposed mer-
chants light power and heat compa-
ny have figures to show that they can
furnish current at low rates, pay the
city 5 per cent on gross revenue, out
no particular profit out Of the com
pettng company's annual figures, and
yet make money. The philosophy Of
this is that they can increase the pat
ronage Of electricity by making it's
use popular thru reasonable rates.
AS stated by w. l.. Harris, president
of the Retailers association, before
the council committee appointed to
draft a franchise governing the rela-
tions between the city, the Minneapo-
lis General Electric company and the
consumer, the present company re-
fuses to make a fiat rate of cents
for light and 3 cents for power, nor
will it Makes graded rate based on
amount of culYent used.
Failing to get together with the
General Electric, and discovering that
no franchise which the council might
adopt would have any force unless
agreed to by the company, and no.
body, official or otherwise, in the city
has any authority with the present
electric company as to rates, the mer-
chants find only two alternatives
either that Minneapolis should own a
plant, as suggested by Alderman. F.
M. Powers, or that the merchants
should form a company themselves.
In response to inquiry, Mr.. Harris
said that the merchants company, in
addition to supplying light, power and
heat to it's members, would be pre-
pared to do city lighting as we'll as a
general business. It was the purpose
in the near future to ask the council
for permit to install a plant.
The Indianapolis Cooperative.
Mr.. Harris cited as an example of
the workings of such a company the
| operations Of the Merchants Heat
which is furnishing light and power
to it's largest consumers at "a cents
! a kiloWat hour, and to the average
| consumer at from 5 to ~ cents a
! kiloWat hour. Altho running practic-
| ally only four months of the year, be-
cause of delays in starting; it has, af-
| ter paying all charges, interest on
enues to the city, made a net profit
of over $4,000. This company is now
! running full capacity and is taking
steps to enlarge it's plant. A battle
royal for the city lighting is on be-
tween the old company and the mer-
chants company Il ..'A... =. -
The Minneapolis merchants believe
company can be duplicated here Fig
ures quoted by Mr.. Harris showed the
effect of the competition on estab-
| lished companies: Altho the old COM
pany lost $35, 900. in customers to the
| new company. and discounted $4,000
! in revenue by making competitive
rates, it's gross increase wasl $4,000
over the year in which thereN was no
competition. A popular price on cur
rent was rather, a benefit than an in
jury to the existing company. "
Won't Hesitate to Cut In 3,
The retailers, Mr. Harris said in his
argument, were loyal to home institu-
tons. In xthe present case. however,
there was no room for needless senti-
ment. The Minneapolis General Elec-
trio company was but one Of chain
| Of thirty companies scattered thru the
country all financed or owned by the
| parent Boston company, and as things
stood now no one had any control
over it in the matter Of rates, the city
attorney, Frank Healy, having stated
| that any franchise the committee
might draft would not necessarily be
binding on the present company.
The council committee adjourned
| for two weeks as a courtesy to the
management of the General Electric
company. Since that time the retail
ers have submitted to the company
another proposition which is now un-
der consideration. It is a. rate of Z
cents a kilowat hour for light and
cents for power, and for all current
used by any individual consumer in
year III cents a kilowat hour, the
agreement to last one year from
March !, 1904.