Omaha daily bee., 1915-07-17
GAS COMPANY MAKES
OFFER OF LOW RATE
President Hamilton Writes that Dol.
lar Per Thousand wiz Be the
New Price.
CRY MAY ACCEPT THE OFFER


The Omaha Gas company, through
its president. Frank T. Hamilton'
voluntarily offers the city 81 gas.
the city council having received
wfitten proposition.
The company proposes TO make
the new rate effective August 1. The
letter from Mr.. Hamilton was re-
ferred to the council committee OF
the whole for consideration next
Monday morning.
canvass OF the commissioners In
dictate an inclination to accept this
offer and to drop litigation now
pending.
step Cat by Infunction.
The 81 gas rate ordinance was paced
four years AGO and would have gone into
effect June l. 1911. had the company not
started court action. Judge T. G. Munger
o. the United States district court for
Seitaska ruled there existed an inviol-
able contract between the city OF Omaha
nnd tho gas company and he held that
the 81 gas ordinance was invalid The
case Is now being prepared for the su-
prone court Of tho United States on ap-
peal by the city. The city legal depart.
nsont has commended that the law upon
which the old contract rate ordinance
was based in invalid and that the claim
Of the zas company as 10 it, rights 70
certain rates cannot be sugtained.
The company has contended right
along that, according 20 liz, contract
with the city, a net rata Of f1.N could be
charged at this time. instead Of the
existing net rate Of a.ig The reduction
offered Will cut tho net rate from skIs 70
81 per tbousanc feet
Tbs company'a franchise extends 70
1915 "
To stop Litigation.
II Il stated that the acceptance Of this
offer Of tho RAs company would have
~ effect Of stopping further litigation.
The city legal department had hoped 70
require the q rate 70 be retroactive from
June. 1911. IN the event the city finally
won the ssiis
Following she passage OF the q ordi-
nance the city had physical valuation
Or the plant made BY the late w. D,
marks. who rsportsd the company could
furnish gas here AZ q cents PET thousand
feet. allowing for per cent on tho In
yorment ~
The city commissioners exprcssed them
SELVES pleased with tho disposition Of The
ean company 10 acoede 20 the pcpaiaH
demand Tor lower Kaa.
To nnceenae Eaxuknm~.
President Hamilton said; Il am not
preparod AZ this tsus TO state how much
o,,f earnings will be reduced by reason
81 this rate reduction. We believe our
eales viii increase and we have faith IN
Greater Omaha"
Mayor pahlman sasds II cru o. the
oplnion this will pssils the iisigasion We
viii siipouas this next Monday nnosnins
president Hemiiton's letter 10 TN
marcr ana commissioners foliow,
IN aezsrosses 70 the request oonstauti,
urged ~ yoar hcnornble body and b
the nosepapers OF the city that the ga
company should &C this tine. In spite o
tha recent decision rendered In ~ fAvo'
IN the United States district court. reduc'
tho pssco OF gas. the .rnattNr has beei
taken up anew by she board Of director
Of the company. and am dad 70 be abb
70 ANNOUNCE 10 you that tho prov % ga
win b reduoed 20 one dollar tti.oc ne
per shoosand Guido feet for All gas con
stunned On and aftsr August !. 1915.
sBIlls viii be rendered AZ u.io pe
thousand fcoe. with iincount ~ hereto
fore Of tea 90 Genes per thousand oubl
feet
m the company couid be relieved Of
portion q the burden which Il beaxz 4
tho shspe Of abnormalay hiEh taxes
license fees and royalties. amounting 4
me aggregate to more than fifteen "a
cents per thousand cubic feet Il woui
be gied 70 make q stiIl further reductio
IN the selling price OF sas''
On Aueunt n. 1914 special elactlc
was hsad 70 determine wnsther the "a
company should be granted q me-
twensv~five-yeer franchise IA lieu Of IN
mediate q eas. The propoAition faile
to carry BY decisive vote,