New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1920-05-26

NEW ULM GAS COMPANY MAKES
APPLICATION AT CoUN-
GIL MEETING.
SPECIAL COMMITTEE APPOINT
ED TO STUDY LOCAL
SITUATION.

SfEOlAL OONlMl1 lee APPOINT
ED TO STUDY LOCAL
SITUATION.
O. II. Griggs of Minneapolis, president
OF the New Ul1n Gas Company, and G:
r. Hennick, treasurer and general
manager OF the same concern, appeared
before the New Ulm City Council at a
special meeting held Friday evening to
ask for an increase of the present gas
rates in this city. Mr.. Griggs explained
the situation to the council members say
ing that the New Ulm Gas Company
hesitated for more than a year to take
this step and make an application for
higher rates. There is hardly a city in
Minnesota and the Dakotas, where the
increased cost of production during the
past five years was not followed by a
considerable upward movement in the
rates, he stated. To verify this state
ment he produced a number Of letters
from gas companies in this territory
giving the amount charged by them for
gas consumption.
No Dividends Paid.
Mr.. Griggs recalled the fact that the
New Ulm Gas Company was given its
franchise in this city in 1914. He added
that since then the company never paid
any dividends on its investments, nor
was ever any interest paid At present
it has come to the point where the COM
pany begins to lose money, Mr.. Griggs
said, making it an absolute necessity for
them to increase the income. This can
only be done by raising the cost Of gas con-
sumption For more than year the
conpanys officers were aware of this
situation, but they always lived in hopes
to see the price of coal and other COM
modities used in the production of gas
come down to a lower level and, there
fore, waited to the very last before they
made their request.
In referring to the present cost of heat
ing material used in the gas plant, Mr..
Griggs drew comparison between the
prices for coal, coke and oil in 1914 and
in 1920. Six years ago ton OF coal was
SO IS, while the company at present pays
as high as $11.55 per ton. The difference
in the price Of coke is about the same:
$685. per ton, in 1914, and $13.81, in
1920. Oil is also used by the company
in larger quantities. This commodity
was 3 Sd cents per gallon in 1914 and
today it is 10 SIS per gallon, according to
Mr.. Griggs' statements.
Average Rate is $1.91.
% letters received by Mr.. Hennick IN
answer. to an inquiry made by him from
as many gas companies in Minnesota and
Dakota towns were partly read by Mr..
Grsggs. They showed that every one
of these companies had made a con-
siderable raise in their gas rates since
| 1914, the year the New Ulm company
| began to do business in this city. In
regard to size all of the towns reporting
| belong to about the same class as New
Ulm, with the exception Of a few that
I7shoWed considerably larger population
and higher gas consumption. But all
of them reported a higher gas rate.
The average gas rate charged IN these
90 towns in 1920 was $1.91, according
to Mr.. Griggs. Six years ago these same
companies charged an average rate Of
/ $1.45, he said This would mean an
average increase of 46 cents, while during
1 this same period no increase was asked
4 by the local company. The rate Of .4(
/ per 1000 cubic feet,Which was charged il
/ 1914 is stillsin vogue at the present time
Mr.. Griggs also pointed out that his
company never changed the quality o!
the gas, but that in spite of a number Of
severe handicaps Manager Hennick al
1 mas af i ser1;caa blanass - iiss'
COMMITTEES Appointed.
Following a discussion 81 1ne ), ma1tel
by the council members the natIer wa:
referred to special co1anlrtee APPOINTED
by President krook 70 9, s5udy ghe io :,
situation and go over the records 81 81 the
4 New Jim Gas Company. NE. k re
stated that the city fathers were WILING
to be lar and Just IN Their attlt ,l9e 70
wards the company,s request, put at Il shs
same time ne, they Wouid nave 20 Iook. aItel
the interests OF the citizens. e also aao wa
pointed out that there are s ABOUT ooV g gas
consuming housenoias "a Gat elsg
ne loi.oWig Weae M
Ma nullI neadt Albert Pfaende
. and President Z. B. Krook.