The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1920-02-12
udMMERCIAL CLUB
DISCUSS FRANCHISE
POWER PROJECT OF CENTRAL
MIMI, POWER & MILLING
co. HAS HEARING
WHITNEY WOULD BUY dam
NEGOTIATES FOR WATER POW
Err AS AUXILIARY PLANT TO
ST. CLOUD SYSTEM

ST. CLOUD SYSTEM
Negotiations for the purchase from
the Central MINI. Power and Mill
er company of the dam, flowage
rights and water equipment by the
st. Cloud Water Power company, and
the granting of franchise by the
city permitting the Power company
to run lines into the city for the
purpose of giving service to the mill
ing Company of the dam, flowage
at rate of 1 3-4c per XIV, were
the principal subjects of discussion
at meeting of the Commercial Club
Tuesday night.
A. G.. Whitney, president of the
st. Cloud concern and who is already
under the contract to furnish light
and power to the city of Sank Centre
for a period of five years, has made
an attractive offer to the Milling COM
pany for their water power rights
and property.
The deal pending between the To-
cal concern and Mr.. Whitney, in
cludes the purchase Of the dam,
fiowage rights and water machinery
of the Mill, the consideration being
$4,000. A part of this consid
ton is a Is year contract with the
st. Cloud company to furnish the
mill direct with electric power for
period of twenty-five years at a cost
TO the mill of 1 3-4 cents per XIV.
This contract also contains clause
whereby the mill is given adoption
Of the continuance of this electric
service for a period of IL and one
half years after the expiration of the
Is year contract.
W. M. Parker, president of the
Milling company, appeared before the
city council last week and requested
that franchise permitting the
Whitney concern to furnish him
power be granted. An ordinance was
framed permitting this action, and
the Council has given this ordinance
its first reading.
In calling the attention of the Com
mercial Club it was explained that it
was the purpose of the clubs to in
vestigate the various clauses of the
proposed franchise and recommended
action to the council.
In view of the fact that the st.
Cloud company is now under con-
tract to furnish the city with electric
s.power through the local switch
board, and the fact that the purchase
rate from the Whitney con-
Germ will not permit the city to dis
pose of electricity for rate less that
90 cents per XIV. the matter OF
granting the milling company spec
ial rate at this time met with con-
siderable opposition in Tuesdays
meeting.
Mr.. Parker, appearing for the Mill
ing company, stated that in view OF
similar rates given other milling con-
Germs in. this locality, it was impos-
sible for the Sank Centere concern
to compete with outside manufactur-
ers unless they could secure power
rates on par with Fergus Falls and
other points in the state
Mr.. Whitney, in purchasing the 10
cal dam and fiowage rights, has ex-
pressed intention of developing the
water power system for the purpose
of using this point as an auxiliary
to his lines to the west. The water
mower here, under the Whitney con-
troll, would be use dto "boost" current
/ over the Power company lines out OF
Sank Centre.
Discussing the position Of the
sMiIling company, Mr.. Parker said
that the rate offered him by the city
for. electric power was prohibltlve
In view Of his competition; that ne
either had to secure reasonable rate
from st. Cloud or resort to water
power entirely to uses in his insti-
tuition.
CITY Attorney L. L. Kells, stated
at the meeting that unoffcially, ne
was of the opinion that the granting
Of this proposed franchise to Mr..
Whitney would be an infringement
nnon the contract already held by the
city-that it would lead to the grant
mo of numerous franchises for spec
;ai mower service and in time cut
considerably into the revenue OF the
city from its power plant.
He. cited the history OF Sauk
Centre relative to the dam, saying
that he considered the dam an asset
to the city and one which should not
be permitted to pass into the nanos
of an outside concern. The dam ana
fiowage rights, however, are the pro-
pertv of the milling company. !.
Following the discussion OF the SIT
nation from various standpoints, u
was moved and carried that the mat
Ztr of recommendation to the coun-
I'll be laid over until next Tuesday
night after. which time the council
will have had a second reading OF the
ordinance; it will be presented to the
citizens at this meeting in admended