The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1932-07-21
SHALL THE CITY PROMOTE AND
OPERATE A GAS PLANT?

OfEhAIE "A UAO
~ EADLOCKED the question of granting
] gas franchise or promoting and operating
- cty-owned plant, the council has passed the
question the voters with three alternatives: First
shall the council grant franchise for the con-
struction and operation of privately owned plant
Second Shall the the common council proceed with the
establishment of city owned gas plant? Third Snail
the council drop the matter for the pres
ent
The last question easily be answered by the
voters Gas is an economical and entirely practical
fuel and it is wanted here in sufficient quantities to
make its distribution profitable, there is reason why
the city should have it. An accurate survey care
fully audited to determine how many of the persons
desiring gas afford to pay, will reveal the answer
beyond further question.
The first question can be only tentatively answer
ed at this time because no sample franchise has been
submitted for approval franchise prepared by the
city, containing full protection for its citizens and the
privilege of acquiring the plant should the city desire
after reasonable length of time, should be agreeable
to voters Council members offer assurance that such
franchise is meant on this ballot.
The question concerning municipal ownership is
the which voters will puzzle longest for the
issue is full of "ifs" and sands which make wise
decision difficult.
Launching of municipal venture calls for the i'm
mediate issuing of bonds of approximately $4,000 for
the construction of distribution center and the laying
of mains to parts of the city where sufficient to
warrant are procured. 1t calls for the selling" of
sufficient numbers of to pay the cost of carload
shipments of liquifed gas the expense of servicing
meter-reading, clerical work, payment of interest
the bonds and ultimately the payment of the bonds.
1t becomes obvious that the requirement for
cessful operation is sufficient satisfied customers For
purposes of computation in Redwood Falls, the promot
255 customers basic figure. This is arrv-
ed at by dividing the population which 1850 when
the takers last made their rounds, by ten.
Obviously this figure is guess which only
.GnI foix TIo&.1
made business conditions and the fact that persons
here accustomed to the of other fuels must be
coniaered. 1t is true that this estimate is low consd
ering municipalities where gas has been in use for
many years.
How has this estimate worked out in other towns
where natural gas has been offered? Figures on any
privately owned plant in competitive field diff
cult to procure and estimates of large group Of per-
close to the situation must be relied upon whether
promoters editors seeking the facts.
Detroit Lakes officials, hardware and others
close to the heating industry call 800 connections "a
generous estimate" and add that some of these have
installed stoves water heaters although the
franchise has been in force for year and half. The
city has population of 1885, not including hundreds
of wealthy visitors, which would indicate that
one connection to 13 persons is accurate there
Wadena village of 2,512 persons, faced with
the gas question year ago and finally issued fran
chise September II. Wadena in similar positions
say that 35 is maximum there at present.
proposed central distributing plant has not materialz
ed and scattered customers are served from sunken
BOTTLES awaiting the laying of MAINS Plans that the
field would be broadened from Wadena to include
by towns also have not developed and the ctys gas is
being trucked from Detroit Lakes. Perham and New
York Mills, other villages served from Detroit Lakes,
also have scattered at the of rs to 100 per-
to each connection.
Wahpeton with the first propane gas plant built
for city use had PIT customers when the annual
port required by North Dakota law filed January l.
The population in 1880 was $40.
These facts verify a contention that the number of
cannot be determined by estimates. Develop
ments in these towns however, have been differ
ent basis. At Wadena, users required to advance
$50 to the company which is paid back at the rate of
20 per cent of their monthly bills the bill averages
SIS per month"; the is credited with 81 from his
deposit for the first four years and two months he
uses gas
The Detroit Lakes field was developed without this
stipulation and moved forward faster. At Detroit
Lakes incidentally the franchise accepted has clause
allowing the city to buy the plant three years after is
installed at the actual value of equipment and with no
allowance for going value" franchise value"
or good will" To this could be added clause re-
quirng that local be hired for construction work
and that mechanical trench dggers such as were used
Weekly News From ed ed Mr. and Mrs.