The Detroit times., 1911-06-17
GAS GRANT, Dram
IN BLANK, MAKES
PRICE 80 CENTS
Corporation Counsel Hally r5epa1c1
Franchise Stating City's Terms-
Provision Made for Ultimate
Public 0wnership.
John D. MacKay Only Apphcanf
Thus Far, But Others Are
Expected.

Corporation Counsel Hally on Sat-
urday completed and sent to Aid
Tossy copy OF model form Of M
tural gas franchise. II II revised from
one framed by Joseph w. Martin. who
was an applicant for grant This
proposed franchise was presented To-
the corporation counsel at the request
OF Aid. Tossy. who wished that q
clause be inserted providing for ultt-
mate acquisition OF the plant by the
city, and for such other changes a.
might be deemed necessary The
terms In the franchise will be insisted
on by the council II grant Is made.
The franchise is drawn In blank. It
gives right To operate for 80 years,
and specifies that gas shall be furnish
ed to all applicants not In arrears IN
their bills on all streets where mains
are laid, and on all streets where
there are two applicants for every 200
feet Of new mains to be laid.
1t provides that no damage shall be
done TO property OF the city or any
other public service company, and
that the gas mains shall be laid inside
the curbs, and where practicable, In
alleys.
The rates are to be 90 cents q thou
sand for 5000 feet or less per month:
45 cents for 5000 to $4,000, and 40
cents up to 10000. with special rates
for larger consumers, and q 1914 per
cent discount. The company's books
are to be kept open, and when Il ~
paying more than per cent dividends
on the capital actually invested, q
~ .ka h.
pany Is forbidden to sell any bonds at
less than par. Arrangements are made
for testing meters by the ID. p. W.
and the gas pressure Is regulated, a.
well as the chemical purity OF the
product.
In the franchise as drawn now there
is provision for acquiring the plant
by the city only at the close OF 80
years. Corporation Counsel Hally ex-
plains, however, that II win be easy
to provide for the purchase at any
time, IL that Is desired.
The holder of the franchise Is re-
| quired to put up q continuing 100000
bond to protect the city from damage
suits and damage to city property.
The company is forbidden to make
any rate agreement or any division or
territory with any other company.
In the event OF the company being
unable to obtain natural gas, 1t IL to
be permitted to engage In the business
of supplying consumers with artificial
gas. but only upon such terms and
conditions az may at that time be
agreed upon.
A certificate Of deposit for $1,000 n
required as guaranty that the
grantee OF the franchise shall have .
plant constructed within IS months.
Mr.. Hally explained that II $4,000
were considered insufficient larger
deposit could be required, SO that any
concern would be prevented from OBJ
taining the franchise and holding Il 70
keep out competition for Is months.
In letter to Aid. Tossy Mr.. HalIy
stated that two clauses should be ad-
ded to the draft as prepared. PEN
atty clause to make II easy to enforce
the provisions OF the franchise with
out resorting to forfeiture, and Z
clause requiring the company to -.
adjust It's pipes In case OF grade sep
arations.
John d. MacKay Is the only appli-
cant for the franchise as yet, but u
Is rumored that other parties who are
actively In the gas business will come
forward.