The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-03-17
.FARIBAULI PAYS
M0REI0H0ME men
ELECTRIC LIGHT CONTRACT
AWARD CAUSES BAD FEELING.
Polar Star Company Favored Over It's
Rival Largely to Protect the Interests
of the Depositors of the Failed Ma
tional-Funds of Bank Loaned Com
pany by Clement. -@s..
Special to The Journal. :

Special to The Journal. '.'' = -,3. .,.~e. -
Faribault, MIMI, March little city council
has awarded to the Polar Star Electric COM
pany the contract for lighting the city for eigh-
teen years. BY the terms Of the contract the city
will pay SOL year for arc lights; 5000 for
all might incandescent lights and 1920 for mid
night incandescents. - r -. IT,. .sf....s
When the contract was awarded the council
had before it an offer from tile Consolidated Gas
for 10 per cert less. The Consolidated company
claims that had its offer been accepted the tax
payers would have been, saved $3.50 annually, or
between $4,000 and $4,000 during the life of the
contract. .s = >a..-&" =. b.. .-s.-.. =
The council was influenced to take the action
it did by variety of motives, prominent among
which desire to protect the interests of the
depositors of the First National bank.
The Polar Star company was one of the indus
tries financed by T.. B.: Clement, the banks presi-
dent. For some time he held the bonds of the
company fer $4,000; which he LATER disclosed Of
to the First National bank of Minneapolis, guar
| anteefng the interest: Besides this he loaned
to the members of the company $4,000 on their
Individual notes, the proceeds being used to
tend and improve the plant, and payment of
which was understood to depend almost entirely
upon the profit of the venture in which they We're
engaged. ''',''a .~.---~ . 49, . ..
Notes to Be Taken Up. "a y:
| This being the case, influence of a powerful
character was brought to bear the city council
| to induce it to renew the contract which was
about to expire, as to make Its loans to indi
yidual members good, k D. Chase. director
on the bonds held by the Minneapolis bank, APP
peared before the committee of the council with
| the offer to complete the deal, finance the com:
pany nut it on a solid, basis and take up the
| notes held by the bank here If the contract asked
for granted. &1.s..> -. .... -.
| 1t was also represented that the growing in
| dustry established by the Faribault Manufac-
turing company, builder of gasolene engines, was
involved in the Polar Stars affairs and would
be seriously affected ifrnot destroyed in case dis
| aster overlook the latter. 1t was further stated
70 no this 6ouht1aSS n
with influencing its decision, that the Polar
Stars rival, the Consolidated Gas g.. Electric
company. stood ready to take up the Polar Stars
bonds, absorb the company and establish for
itself monopoly of the lighting business here,
and then boost the prices Ito private consumers
At all events. the deal: was hastily closed and
| the Polar Star has a contract to light the city
for the next decade alta higher price than its
rival was anxious to perform the same service
| for. :. g..
Home Company Favored.
Besides the matters already referred to there
is strong sentiment here in favor of the Polar
Star company, by reason: Of the fact thai 1t Is Il
home institution, managed by Faribault men
and backed by Faribault capital. 1t is commended
that such an institution should always be ia
vored in preference to- a foreign corporation,
and it is pointed out that the Consolidated
company Is but branch of a Boston institution
and that whatever profits arise from its business
so to eastern stockholders. - 49, ~:
Another grievance against the COnSOl tdated
company Is that it has Id the past failed to dis
charge an obligation morally II not legally in
cumbent apon it to paS.Il 1t appears that under
different management its wires one day went
wrong. and in. coming ctn-contact with them a
man was so seriously iphsred that' eyer since his
arm has been parafyzed. He hrought action
against the company and secured a verdict of
81 600. The company then went into the hands
Of a receiver and it is popularity believed that
| 1t did SO to- avoid paying the Judgment: al - ?
It is pointed out that, altho under a. different
name, the same maintain their connection
with the company, and that it is to all 1ntents
fairness to deal justly BY the man crippled thru
its neglect. ~. l.! x.
-" Attitude of the Consolidated.
| The contention of Manager Cowp>rthwaite Of
the Consolidated is that however desirable it may
have been to protect the depositors in the First
/ l,o.,lr to ctnn in.