The Oskaloosa herald., 1913-01-23
that GAS ORDINANCE
It Passes in City Council and Will
Go to the Courts.

OSkalOOSa contest Tor lower gas
rates came to show down Friday
evening at special meeting of the
city council. The ordinance revising
the local gas tariff downwards was
passed,-three votes for, three votes
against, making a tie. Mayor Rey-
nolds voted aye,-"four ayes, three
nays" said City Clerk Carln.
Carried; the ordinance is passed."
/ said Mayor Reynolds.
| Votes for passage, Blattner, Camp
! field Minnick and Reynolds.
Votes against passage, Laffollett,
Penders and Seibert.
ITO be in full force and effect af-
ter publication as required by law"
| Passage of the ordinance, interpret
ed, means a test of the case in the
courts. Notice of the resistance of
the new rates was informally served
on the council at the session by Hen
ry T. Head, of Grand Rapids, Michi-
gan, owner of the company, who ap-
peared before the council at the SEES
sion. ----->..
New rates, according to the ordi-
nance, will be $1.25 gross, to consum-
ers OF less than four thousand cubic
feet of gas, less fifteen cents per
thousand if bills are paid before the
fifteenth of the month of presenta-
ton, making a net fate of $l.l0. The
rate to consumers of amounts of four
thousand cubic feet or over will be
$l15 gross or 90 per thousand feet
liz paid on or before the fifteenth OF
the month.
Special session of the council was
called by Mayor Reynolds last even.
ing on account of the presence in the
city of Mr.. Head, who desired a
hearing on behalf Of the Gas Com
Ipany. He presented the views of the
local Gas Company, opening the books
to the council and exhibiting earn
ings and cost Of manufacture. Ac.
cording to the statement of the Gas
Company representative, the making
of gas in Oskaloosa last year cost
81. 3217 per thousand, and at the pres
ent time with the increased cost OF
oil and fuel the cost of manufacture
has advanced 10 $l.34l7 per thousand
and In selling at $l.35 and $l.25 net
the present rates, the company Is
now operating at loss.
Present rates of the Gas Company
are $3.50 gross or $l.35 for under four
thousand feet and ST. so gross with a
discount of Is cents per thousand
feet to users o. more than four thous'
and feet when paid before the tif'
teenth OF the month.
Mr.. Head ,ets forth that the Gas
Company has perpetual franchise
and that the city council has no right
or power TO change the rates. Mayor
Reynolds holds that the Gas Com
pany has no perpetual franchise and
it is question as to whether the
company has any franchise at all
THE way to determine the questions
Involved lead through the passage oi
the ordinance and the power of the
Ecity OF Oskaloosa to enforce the same
Notice of trial will appear at an
early date in an order of court for
the city to appear and show cause for
| its action. -.. '.-.s 49, ~' ...-
Mr.. Head stated that he wished it
understood that the trial of the case
would be on its merits and on a
friendly basis to determine the rights
of the parties TO the contest and in
this all were agreed. The arguments
OF the evening were all OF a friendly
character. Mr.. Head said he had de-
sired that the city and the Gas Com
pany get together in the matter with
out resorting to the courts and liti-
CATION as he was adverse to spending
his money in that manner. Mayor
Reynolds agreed in these expressions
but held that if the city of oska-
loosa is tied down by a perpetual
franchise, the sooner it is determined
one way or the other the better for
| all concerned.
| Mr.. Head was accompanied by his
local superintendent, Mr.. J. F. Crit
fen, who verified statements made
concerning local conditions, accounts
and records. ...-
! Adjournment was taken following
the conclusion of the final passage Of
the ordinance.