The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1909-02-25
REPOSITORIES
FOR Gas FUNDS
AGREEMENT CLEARS WAY FOR
EARLY HEARING ON REAL MER-
ITS OF THE CONTROVERSY.
PROTECT ALL RIGHTS
City's Representatives Demand and
Secure Application of Any lntermed-
late Rate to Apportionment of Funds
Deposited-To Bear interest.


late Rate to Apportionment of Funds
Deposited-To Bear Interest.
Attorneys for the East Ohio Gas
company and the legal representatives
of the city of Canton, after several
weeks of negotiations, have finally
agreed upon terms which temporarily
settles the natural gas controversy IN
This city. The settlement is embodied
in a court decree, the journal entry
of which was presented to Judge Henry
w. Harter late Saturday. BY the
terms of the agreement the 22 cent
rate for gas, should the ordinance
fixing that as the price to be charged
be sustained by the courts, will be
effective from December 2, 1908, the
date the ordinance by its own terms
went into force.
The settlement also provides that II
the courts shall finally decide upon
q rate in excess of % cents but less
than 80 cents, the amount demanded
and now being collected by the com
pany, the intermediate rate fixed by
the courts shall likewise apply from
December 2.
Consumers, until the issues have fin
ally been decided by the courts, Will
be Obliged to pay for all gas consumed
at the rate of 80 cents per 1000 cubic
feet but the difference between this
rate and the 22-cent rate provided IN
the ordinance, eight cents per 1000
feet. is to be deposited in two national
banks at the prevailing rates OF in
terest and held in trust. After final
adjudication of the issues, if the courts
find that the % cent rate is reasonable
and shall stand, the consumers Will re-
ceive from the fund eight cents for
each 1000 feet paid for during the in
terim, together with interest during
the period it remained in bank.
Should the courts order a rate be-
tween % cents and 80 cents the gas
company will receive from the funds
thus deposited the difference between
% cents and the rate thus fixed while
the consumer will receive the differ
ence between the rate fixed by court
and 80 cents per 1000 feet, the interest
70 be divided between company and
consumers in proportion to the snare
of each in the trust fund.
Mayor Turnbull and the city admin
istration in effecting this arrangement
appears to have secured more ad-
yantageors temporary settlement OF
the gas controversy than did Akron,
where practically the same conditions
exist. except that the proceedings in
Akron, having been started earlier,
are further advanced in the courts.
Among the advantages secured by
Canton over Akron are the payment
of interest to consumers on Whatever
pOrtion of the deposited funds may re-
vert to them: the right of the con-
sumer to claim the rebate any time
within the period of the statute OF
Limitation (six years. while in the Ak
ron case all of the deposits not claim
ed within one year after the final de- |
cree reverts to the gas company; and
a retroactive clause, making the rate
finally determined upon operative from !
the rate of the % cent ordinance,
while in Akron the new rate is to be(
effectively only from the date upon
which the terms were settled.
The First National and the City Ma
tional banks were selected for the de-
positories and the rate OF interest is
10 be 4 per cent on all money remain
ing On deposit one year or more and
g per cent on all sums on deposit less
than one year The funds are to be
deposited in the name of the East Ohio
Gas company as trustee, but such
trusteeship Is merely nominal, the
court having absolute control over the
fund. and no money can be paid from
1t except upon order of the court. This
plan was adopted to save the great
expense Of having a separate trustee
to handle the funds Each month
the company is Obliged TO deposit in
the two banks, as nearly as possible
the same sum in each, eight cents OF
the amount collected for each 1000 Gu
bic feet Of gas furnished Except in the
case of the city of Canton and other
to whom special rates un-
der special contracts are granted, in |
which cases the proportionate deposits |
are to be made) and once this money |
is deposited it must be held by the |
banks until the court orders it paid |
out. City officials and attorneys are
at all reasonable times to have free
access to the books of the gas COM
pany 10 see that proper deposits are
made and the receipt of the consumers
will serve as evidence of claim. In
this connection the city officials ad-
wise all consumers to save all of their
receipts. The first deposits under this
are to be made this week.
probably Tuesday,
The point over which the attorneys
had the most difficulty in reaching an
was in connection with
possible intermediate rate being estab-
lished, the gas company holding that
If the decision should fix any rate In
excess of % cents that decision should
invalidate the 22-cent ordinance and
all of the money deposited should re-
vert to the company. City Solicitor
Blake and the other attorneys n sld
out steadily for provision but there
should revert to the consumer the diff
ference between the rate finally fixed
and the 30 cents per 1000 feet paid, and
In finally securing this provision feel
that they achieved a signal victory.
Under this plan, should the final rate
be fixed at 25 cents, the consumer will
receive a rebate OF five cents while
under the contention of the company
he entire eight cents deposited would
revert TO the company.
The company had incorporated In
he reeree a provision that nothing
N this proceeding should be construed
Is preventing the gas company from
exercising its claimed rights to en-
ireIy withdraw from the city and
ease supplying gas to any Of the con-
umers therein. L
Creat importance attaches TO this