The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1918-07-01
City Attorney Notifies
Company It Must Live
Up To Its Franchise
HIGHER COST OF
PRODUCTION CITED
.Hibbard Says Fuel Cost
And Increased Freight
Rates Big Factors

Moorhead, which ia supplied with
gas by the Union Light, Heat IL
Power CONWAY, will E contest iR-
creased gas rices announced today
by the company, while the attitude
Of the city Of Fargo as represented
by the city commission, remains un-
certain for the time being, because
OF the absence from the city OF
President Alex Stern, Of the COM
mission.
Two increases are announced to be
effective today, one Of which SENDS
the cost Of gas from S1.32 net to 81
net, and the other sends the cost OF
electricity for household purposes
from S.9 cents net to IL cents net
per bilowat hour.
Increases of similar nature We're
announced today in Minot and
Grand Forks, where the public utili-
ties are owned by the same company
that controls the Fargo plant-the
Northern States Power company.
That steps will be proposed at the
regular meeting Of the city commits
sion Wednesday, il special meeting
| is not called before that time, for an
inquiry into the increases an
nounced today, was deemed almost
certain today.
Moorhead Insists on Franchise Rate.
| City Attorney James A. Garrtty OF
Moorhead this morning served
notice on the Union Light, Heat g.
Power company, demanding that the
company live up to its agreement
with the city, as provided for in the
franchise by which the company
loperates in that city. Under that
franchise, Mr.. Garrity points out that
the, company cannot charge in excess
of $3.50 for lighting gas, and Sl.46
for fuel gas under the franchise. The
rate announced is ~.
The Moorhead charter under which
the company supplies gas to Moor
head patrons was adopted May o,
1912, and continues for IL years. It
was approved by vote Of the people
OF Moorhead.
p. Commissioners Give Views.
! Commissioner William Mills de-
clared this afternoon that the ques-
ton of increased rates unquestton-
ably would receive attention at the
hands of the commission. Il am In
favor Of steps to prevent the increase
If it is possible to do So" said Mr.
Mills.
City Commissioners J.. J. Jordan
and r. B. Blakemore have also de-
clared that they are in favor Of city
action in connection with the in
creased rates. City Commissioner
Strate could not be located this after
noon. while President Stern is abb
sent from Fargo.
Statement by Hibbard.
NJ L. Hubbard, general manager Of
the Union Light, Heat & Power
company, in a statement given out
this morning, cites higher freight
rates and continued increased cost
of coal. as the principal factors MAX
ing the raise necessary.
"Tiie public utilities of this coun-
try are facing q condition which new
er before existed" said M. L. HID
bard, Fargo manager. "The govern
ment, when it took over the railroads.
was not slow in finding this out and
Increased freight rates from 25 to
200 per cent and passenger rates as
high as IS per cent. These increased
freight rates, of course, add Just as
much to our own cost OF operation
as the increased price OF coal also
fixed by the government 1t lis quite
obvious that this company can have
no control over this major share Of
our increased cost of operation. The
cost Of everything else we buy adds
just SO much to the problems and Ii
is quite aclear that the only source Of
revenue we have is our customers.
1--WE feel hopeful that the some-
what higher tariffs which we now
announce will not have to continue
for long but while this high cost of
production situation exists we must
have increased revenue. Our nation
al administration recognizes that
there exists a situation without par
alIel i'm public utility history and
President Wilson and Secretary Nc
Adoo have asked each community to
sustain its respective utilities on a
sound financial basis By paying rates
Icsonffn,Ied An naaa ~