The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-07-25
WANT ONLY SI.25
That Is What Mr.. Brady Says
About Gas.
Would Avoid the Heavy Cost of
Collections.
HOLIDAYS LETTERS.
Company Promises in Them to
Spend Much Money.
Also Claim That TOpekaVenture
Has Not Paid.
HOLIDAYS LETTERS.

committee of the city council will
meet for the purpose of discussing for
the first time the proposed new fran
chise for the Excelsior Coke and Gas
company. 1t is an-open meeting, and
most of the members of the council
will no doubt be present.
Some of the leaders in the council
are opposed to the franchise on the
ground that it does not provide suffi-
cient protection for the city. and that
the rate of $1.35 with a 10 cent re-
bate is too high. Mayor Bergundthal
is also opposed to the franchise. Con-
sequently the ordinance is likely to
have rather rough shedding.
Today C X Holiday, who is not
only president of the gas company,
but member of the city council from
the Second ward, gave out some of
the correspondence which has passed
between himself and A. n. Brady,
who owns practically all of the stock
of the company. The letters substan-
tiate the claim made by Mr. Holiday
that it was with great difficulty that
the company was induced 10 make
the concessions il has made The
following is a copy of a letter writ
ten by Mr.. Brady on May 2;
'Dear Mr.. Holliday-Your letter of
the 29th ultimo. is just at hand. I
enclose you all the memoranda 1
have on the subject, and will send
Mr.. Meagher a copy of your letter to
me to see whether you can get to-
gether.
"As I understand the situation, one
of Mr. Meagher's objections is, that
ed by the city in our recent suit only
valued our property at $160.000, and
the fact is that it cost us nearly $685.
These figures were brought about
by the fact that there has been no
interest paid on the bonds since 1900,
nor dividends on the stock in the past
eight years. and there has been no
interest paid on the investment, as all
the money which they assumed they
have made has been spent on the
property
announcement for putting new
money into Topeka
I'VE had planned to spend very
considerable sum. in addition to
that already invested. but can see
nothing in the situation to encourage
a larger expenditure.
"A n. BRADY"
The Mr.. Meagher referred to in
this letter is the bond attorney for
Mr.. Brady. Mr. Meagher declined to
approve any new franchise ordinance
drawn under the provisions of the city
charter act, for the reason that this
act provides that at the expiration of
the franchise the city may buy the
plant at a value to be fixed by a COM
mission of three persons, one to be
appointed by the city, one by the COM
district court. Mr.. Meagher held
that such a commission gave the city
two commissioners against the gas
company's one. He cites the fact
that the value OF the plant as fixed
by the city's appraisers in the pend
ing litigation was only $16O.00O, while
the company claims to have spent
1925. 900 in the plant.
n11 Loft Of To- AFr
Holiday received the following letter,
dated May A:
Dear Mr.. HolIiday-Your favor of
tie End inst. just at hand. am very
ing in the gas matter and appreciate
it fully
81 presume you have the letters
which 1 mailed you on the End inst, |
fully.
Am willing to do anything that is
reasonable, but have been (for !
eight years) without any interest on
and have been carrying the whole |
matter myself. so that 1 really am
ashamed to make a statement to my
friends that would show such poor
even with an extended charter, see |
very little encouragement for a larger |
investment.
81 do not intend this to be final |
@iu lnAIlk lnat aIter reading Mr. |
Meagher's letter and my own, you
perhaps can suggest something that /
would be mutually advanta geous to 1
the citizens of Topeka and ourselves. |
Sincerely yours
Mr.. Holiday makes the following |
statement concerning the matter:
Il told Mr.. Brady that $1.25 was the /
rate which L had been talking here in |
Topeka and that it would be useless
to propose any higher rate. Mr.. Brady /
thought that the company could not
AFFORD to fix it at less than S1.3O, but |
up such an ordinance as I thought
would be acceptable The franchise 1
ordinance which 1 have introduced /
into the city council was drafted right |
here in Topeka, by Mr.. Dielhmann and |
myself. 1t is not approved by Mr.. |
Brady's attorney. Mr.. Meagher, but /
we have induced Mr.. Brady himself /
to consent to it.
This provision that the rate shall |
be $1-35 unless the bill is paid at our /
Office within ten days after the bill is |
rendered is a common provision with |
such franchises all over the country.
It does not mean that the company 1
will require people to come here to
the Office. We propose to eSta blish /
branch agencies in various parts of |
town where bills may be paid on the
S1.25 basis. This method is adopted
to save expense We now spend
s2, 500 a year collecting bills. We must
economic on this if we put in the
lower rate.
1.-The great feature of this ordinance.
In my opinion, will be the expenditure
Of an immense sum of money in i'm
The ordinance fixes the
sum at S175,000, but estimates made
by Mr.. Diehlmann show that the act
1al amount which the company pro-
poses to expend is $269,O0O. 1t will
put the plant in shape to serve a popu- Il
atfon of 100000 people. II
1.-The 80 year term for the franchise
: absolutely essential. We could not Il
get the money to finance the business
such a provision We could