The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-05-04
MAYOR SIGNS IT.
New Gas Ordinance Is Now a
Law.
Company VIII Use Mains Now in
Ground.
COUNCIL LOST CHANCE.
We're In Control of the Rate
Situation.
Company Promises to Charge
% Cents at First.
LOST CHANCE.

Mayor Davis has signed the ordin-
ance passed Monday night by the city
council permitting the Consumers
Heat, Light and Power company to
use the mains of the Excelsior Coke
and Gas company. The ordinance is
now a law.
A misunderstanding appears to pre-
vail concerning the action of the city
council. The city council granted the
right to the Consumers Heat. Light
and Power company to utilize the
mains of the Excelsior Coke and Gas
company for the distribution of
natural gas The Consumers Heat
Light and Power company purchased
the only franchise ever granted by the
city council the Continental OIL and
Gas franchise. The franchise known
as the Continental Oil and Gas com
pany's franchise was first granted
something over a year and half ago.
Because of a failure to carry out active
work Of construction the franchise
would have expired last fall but an ex-
tension was granted to the first of
March The franchise was then sold
by the original owners some two
months ago to the Home Heat and
Light company who in turn disposed
Of it later to the Consumers Heat,
Light and Power company.
Council Held Trump Card.
Inc consumers Heat. Light and
Power company then sold out to the
Excelsior Coke and Gas company or
made a deal with them to use the
mains Of the present gas company
The franchise issued, however, to the
Excelsior Coke and Gas company un-
der which it manufactures artificial
gas does not permit the use of the
mains for the distribution of natural
gas. A special ordinance therefore
had to be passed to enable the Con
sumers' Heat, Light and Power COM
pany to use the mains for the dis
tribudOn of natural gas. 1t was right
here that the city council occupied the
straIegeuc positlon, the strongest
which they have occupied since the
issuance of the Continental franchise
and which they have now lost.
The situation before the passage Of
the ordinance was simply this The
Consumers Heat, Light and Power
company possessed a very liberal fran
Chise which a number of the members
OF the city council wanted modified; the
Consumers Heat, Light and Power
company on the other hand wanted the
privilege Of using the gas mains already
down. If they failed to secure the priv
lege from the council they would be
compelled to go to the heavy expense of
laying an entire new system of gas
mains, the cost of which would be close
to $3.50 OO0
Expense of New Mains.
The Consumers Heat, Light and
to enter into the expense of laying new
mains, at the same time they didn't
want to lower their rates in the fran
chise in order to secure from the city
council the right to use the Excelsior
Coke and Gas company's mains. There
fore they fought for the passage of the
ordinance and stated that it was impos-
sible for them to change the rates in
the franchise which they owned
because they had financed the company
upon the basis Of the high rates and
that the money would not be fOrthcOm-
ing when it was discovered that the
rates had been lowered. The statement
made that they would go right ahead
and lay a new system Of mains if the
ordinance was not passed permitting
them to use the old mains was simply
a bluff. The statement was made that
the pavements would be ruined in the
process Of tearing up and laying down
new mains and that Topeka would
come in year or two behind the other
cities because the mains would have to
be laid. This was also intended to Gre
ate a feeling of uneasiness. The Con-
sumers' Heat Light and Power COM
pany would have thought several times
before entering into an expenditure of
several hundred thousand dollars. The
city council by refusing to act on the
ordinance until concessions and modifi-
cations in the franchise were secured
from the owners would have held the
trump card. The Consumers company,
otherwise the Excelsior Coke and Gas
company, would have consented to mod
ifcations rather than to expend the
quarter of a million of dollars
The matter of rates did enter into
the granting of the ordinance. Not di-
rectly perhaps but as vitality and ass sub
stantially as if an entire new franchise
were being granted.
Davis Says 1t Was Too Late.
Mayor Davis says. THE matter of
rates does not enter at all into this con-
tract passed by the council the other
night The old Continental franchise
passed by the council nearly two years
ago fixed them. If I had the power to
veto that franchise now, and insist
upon cheaper rates, I certainly would
do so, but it is too late now to remedy
that"
The mayor has evidently forgotten or
overlooked the fact that the matter of
rates did enter into the ordinance as
outlined in the manner above.
The mayor has a letter in his posses
sion from Holmes &, Page of kansas
City, Missouri, attorneys for the Con
sumers' Heat, Light and Power com
pany relating to the passage Of the lat
ter's ordinance. The letter is addressed
TO G. X Holiday and says: AS soon
as his honor, the mayor, has signed the
ordinance, you will receive authority
from us to solicit orders for gas for
domestic consumption at a rate of 25
cents net per thousand cubic feet for
prompt payment, contracts to run for
two years from the time the Consumers
Heat, Light and Power company is
ready to furnish natural gas. The nee
essary blanks are being prepared, and