The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-06-22
GAS COMPANY And
CITY CAN'T c. An. I. ]: AGREE /
CoUNCILMEN OF oWATONNA AS
sERT THEMSELVES. q
Corporation Men Begin to Realize that.
the Provisions Of Franchise Are Not
Altogether Meaningless City Will
b Maintain Rights if It Has to Resort
to an Injunction.
.MINNEsoI,A
Special to The journal.

Special to The Journal. -.:7&ae y Il
Owatonna, Mimi. June 22-The city council
and the Owatonna Gas, Electric & Heating COM
pany are at outs, and as result the validity
Of the companys present franchise Will without
question be brought to the courts for settle
| ment. = Yrs
Some six years, ago the city granted the
company a twenty tive-year franchise for gas
lighting and heating upon the sole provision
that the company was to operate its plants
continuously, the heating and gas plants to be
in operation not later than four months from
the date of the franchise. To comply with the
gas part Of the franchise the company In
stalled makeshift of plant which 1t has
operated systematically as it saw fit. a,ys.
A short time ago the company came before
the council requesting that the present franchise
be abrogated and8ta new franchise for, thirty
years be granted In place of it. The explana-
ton offered was that the company was ready
to build modern gas plant but that in order
TO hoat the bonds 1t would be necessary to
have longer franchise than the nineteen years
remaining Of the present one. =, Z :5=%
Takes Only Franchise Away.
The city council took the ground that the
present franchise had been nullifed by the
| failure OF the company to operate the, gas
plant IN good faith, and consequently, before
company, 1t would be necessary to Incorporate
In any new franchise some provisions regulat-
| Ing the price to be charged for gas and other
wise safeguard the peoples interests.
gestions and the council passed a resolution
multiplying the old franchise. Prolonged nego-
t1ations have since been had by the council and
the electric company with view Of getting
| together, and at the regular council n1eeting
last night Mr.. Stahl, principal stakeholder of
the company, appeared. The finance committee
made its report Of what the city would require
in new franchise the principal points of which
were follows: II -
Requirements Of the Council.
Term of franchise not more than twenty
years. -. -
| The gas franchise should be independent =
The plant should be erected and in operation
within three months after the ordinance takes
effect and five miles Of mains laid by Dec. l,
1905, and five miles additional main by Dec.
/, 1907. r,. -.
The price Of the gas shall be SLIGO per thou.
sand feet to persons using less than 1000 feet
in any month; $1.5O per thousand to persons
using between 1000 and 5000 feet, s1.4o per
thousand to persons using between 5000 land
10000 feet 81 80 for all over 10000 feet. f..
| All the above rates subject to a 10 per cent
| discount If paid on or before the 10th day OF
the next succeeding month. After two: years
a discount Of 20 per cent instead Of 10 per
cent shall be given to such persons - -
The quality Of gas furnished shall not be less
than twenty-candlepower: An instrument fol
be placed in the office of the city recorder
+ Mr.. stahl Balks. : u
Mr.. stahl refused to accede to the demands
| of the council, and stated that If the council
i continued to refuse q new franchise his com
pany would construct and operate a gas plant
under Its old franchise. Mayor Dart replied
to Mr.. Stahl by saying that the councilmer
were there to see that the citizens received
square DEAL He stated that Owa tonna proposes
to have gas plant, and If the present com
pany was not willing to put one in, there were
other companies ready to do 50. 49,.
| The report of the finance committee was unan
| nv nf fha
pany win be compelled to accept the terms OF
I the city or take legal steps to determine its
status so far as the old franchise Is concerned
The company has large crew Of men at work
excavating for its receiver, but will be en-
Joined from tearing up 1.-THE streets when: it i
ready to lay mains:a ,a5i I'D & Is ia SO il;