The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-02-18

American" Councilmen Decide to
Make Party Matter of Pro-
posed Increase.
THEY ARE NOT HARMONIOUS
COST OF PRODUCTION PROVES TO
BE THE STICKING POINT.

| An American" party caucus viii
determine whether George A. Snow and
/ William Darst, holders Of a gas fran.
chise, shall be allowed to charge con.
/ sumers a higher rate for their product
than that provided In the original fran.
| Cbise.
The special committee appointed
by the council to investigate the mat
ter reached this conclusion at at exec.
utive session held yesterday afternoon
The committed consists Of five "Ameri-
lean" councilmen, the city engineer
END the city attorney. The latter off.
Gals are also Americans"
The caucus will be held at 8 O'Clock
tomorrow afternoon and final action or
| the franchise matter will be taken by
the council tomorrow night Those who
will participate in the deliberations OF
the caucus will be the American
Ccuncilmen, Mayor Ezra Thompson
City Attorney Ogden Hiles and City
Engineer L. c. Kelsey.
Special Committee Divided.
The special committee appointed tC
consider the subject is divided. The
exact lines of the division are not
known, but the members were unable
to reach an agreement yesterday after
to caucus on the matter.
Prior to the executive session the
committee held public meeting pre-
sided over by Councilman W. Mont
Ferry Mr. Snow was present. and
was reinforced by Attorney Frank r
stephens. Allen T. Sanford was pres
ent to protest against the Increase.
Mr. Sanford admitted that he had
no figures to show the cost of gas pro-
a r =
burden Of proof was on the applicants
to show the necessity for an increase
IN price, and declared they had made
no such showing. Mr.. Snow made 2
speech along his usual lines, saving
that sufficient capital could not be Sc
cured to build as large and modern a
plant as desirable unless the Increase
were granted.
chairman Ferry presented to the
committee a compilation of figures on
the cost of gas production made by the
state electric light and gas board of
Massachusetts. This showed that in
fourteen cities the average cost of pro-
ducing gas was n cents a thousand.
and the average. price to the consumer
was SO cents and a fraction
Mr.. Sanford pointed out that.thfs
price was lower considerably than the
price upon which Mr.. Snow insists, and
said that the Massachusetts plants, in
all probability were more or less anti
qUated, and not equipped with modern
appliances for utilizing by-products.
The principal by-products are coke and
tar
Under Municipal Ownership.
Mr.. Ferry also presented figures on
the selling price of gas in cities which
have municipal ownership of gas
works, and where profits, of course, is
not matter of primary consideration.
These prices were as follows: HamfI-
ton, o., so cents; Duluth, Mimi, IS
cents; Wheeling, w. Va, 20 cents;
Holyoke, Mass, s1.20; Philadelphia,
Pa, where the municipal plant is oper-
ated under lease to private parties, ST;
Toledo, o., S1.10 for Illuminating gas,
and So cents for fuel gas, and Rich
mOnd, Va, 81.
Mr.. Snow insisted that in the east
freight rates are lower, and the net
cost of coal cheaper than in Utah. Gas
coal in the railroad yards In Salt Lake,
he said. cost 81 a ton He said that
when the franchise was originally
applied for he had thought, and three
engineers had concUrred with him, that
he and his associates could utilize their
coal deposits at Provo for making gas.
A gas expert who subsequently ex-
amined the properties for the company
which was figuring on furnishing the
money, condemned that coal, however,
and rendered necessary the securing of
other coal The men behind him, he
said, were willing to spend 81 $50 900 If
the increase was granted.
Mr.. Kempf Is Secretive-
John Kempf, jr., representing the
Utah Light & Railway company, was
present keeping a watchful eye on the
proceedings. He was asked to state
what it costs to produce gas in Salt
Lake, but declined to disclose the Sc
crets of his company. He suggested,
however, that before the council acts
on the matter, it should investigate
thoroughly the cost of production.
Mr.. Kempf said in answer to further
questions that a ton of coal will pro-
duee 10000 cubic feet of gas, and. by
utilizing the by-products and enriching
the gas by the use of oil, q ton can be
made to produce 10000 cubic feet
1t was then that the committee went
into executive session. The committee
is composed of Councilmen A. r. Car
ter, c. J. Crabtree, W. Mont Ferry, NJ.
Z. Mulvey and E. G. O'DonneH, City
Engineer Kelsey and City Attorney
Hiles.
What Snow Asks.
Inc SnOW-DarSI franchlSe as Or1gi-
nally passed provided that the COM
pany should not charge more than
$1.35 a thousand for Illuminating gas
and 50 cents a thousand for fuel gas,
and that it must grant 10 per cent dis
count where gas bills were paid before
the 10th day of the month. The amend
nent asked for provides that the COM
pany shall not charge more than $1.45
and 80 cents, respectively, and that il
must grant the same discount. They
have consented, however, that the new
rate shall apply only during the first
twenty-five years of the life of the
franchise, and that the original rate
shall apply during the last twenty-five
years.
go DAY INTEREST.