The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1918-07-31
COMMISSION TN
FIRST STEP TO
ban RIGHTS OF.
POWER COMPANY.
Ordinance On First Read
ing Repeats Franchise
h Granted In 1881
NEW STEAM RATE
II QUESTION RAISED
Increase Of 100 Per Cent
Also Exceeds Fran
\ chise Maximum

'h BY an ordinance introduced at the
meeting of the Fargo city commits
sion this morning, the Union Light
Heat & Power company franchise
granted by the city council Novem
Der 2, 1881, is revoked, the ordinance
sponsored by Commissioner J.
Jordan, being passed its first read
ing.
g. The commission also consider
ed, briefly, the increase in steam
rates, announced by the COM
pany TO steam consumers, the
now rate being approximately
100 per cent over the rate eff
fective last year, and 100 per
cent above the maximum rate
fixed in the franchise under
which the company is using the
+ , eitys streets and alleys for the
distribution of steam.
No statement was forthcoming TO-
day from the company as to the in
creased steam rates. The whole rate
issue, IL was declared, 10 now be-
fore the state railroad commission,
{ which body has fixed August IS as
the date for it's hearing, and the
company doesn't desire to try it's
rate case In the papers. That, at
least, was the stand authoritativeIy
stated, though nobody connected
with the company cared to be quoted
to that effect.
Although no city official who
has interested himself in the
matter was willing to go on
record to that effect, it was the
general sentiment that steam
Consumers who sign up for the
new rate, though the same is in
excess of the franchise rate,
will be required to pay the
rate fixed In their contracts
even though the state railroad
commission should determine a
lower rate is fair compensation
10 the company.
Advised Consumers Meeting.
B. r. SpaIding. assistant city at
torney, asked by the city commits
sion this morning for his opinion
of the steam situation. states that
his office had several days ago ad-
vised one steam consumer, who had
interested himself in the matter. to
bring about a meeting Of the steam
consumers, and that such consum-
70 Ha
their desires in the matter.
By requiring the payment Of a !
steam rate in excess of the fran |
cilise rates, questions opened include
the power OF q consumer to compel
the company to furnish steam at the
franchise rate, without signing a
contract, as we'll as the liability Of
the company to continue service at
the rate fixed in its franchise!
Many Have Signed.
That practically all steam con- |
sunners have signed up on the new
rate, became known today.
Under the new rate, a meter
charge Of $1.20 net per 1000 pounds
Of steam is made.
The old rate. or the maximum
franchise rate Of 40 cents per square
foot Of radiation. was equivalent to
Gle per 1000 lbs. on the meter ba-
sis, so that the new $1.20 net rate
is5s'within a fraction Of 100 per cent
greater than the rate Of a year ago.
In presenting it's new contracts,
the company has made the point to
consumers that the new charge is
the same charge that was made last
year in st. Paul.
r" Repeal Of Franchise.
The movement to repeal the fran
chise under which the company is
supplying gas and electricity, is de-
clared another step in the city's
movement to terminate the franchise |
holdings the company may have.
The city takes the point that the
company holds no perpetual fran
chise, and the ordinance repeating
the 1881, is simply held as another |
step in clearing up the record, and |
preliminary to an order to the COM
pany to vacate the city'sr streets and |
alleys.