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Show QUESTIONS MED NEWGASCOMPANY People Want to Know Why Increase In-crease in Price Is Demanded. De-manded. THIS, TOO, BEFORE WORK . OF CONSTRUCTION BEGINS Hundreds of Contracts Signed, Nov Raise of Thirteen Per Cen I Is Asked. Why, before beglnlng active construction construc-tion of their proposed gns plant system, do the Snow-Darst people seek permission for a large Increase In tho price at which they will furnish gas to Salt .Lako consumers? con-sumers? Why did they wait until a fifty-year franchlso hnd been granted, under stipulated stipu-lated terms, before giving notice that they desired to raise the price? Why were many hundreds of contractu to uso gns at tho low stipulated price secured se-cured before tho citizens were made nwaro of the fact that promoters desired to increase their figures? Citizens Are Interested. Thcso and many other questions are being be-ing asked dally and hourly by hundreds of citizens since tho Snow-Darst people havo mado application to the City Council Coun-cil for an ordinance permitting them to Increase the prlco of tho gas which they purpose to furnish from 75 to 5 cents per thousand cubic feet for fuel purposes, and from $1.26 to $1.35 for Illuminating gas. One Promoter Talks. In an effort to solve this problem, The Tribune Wednesday sought nn Interview with George A. Snow, who has recently returned from Chicago, and who Is tho leading spirit back of the project, associated asso-ciated with William Darst and others of Chicago. This wus the first question put to Mr Snow: "Do you expect the citizens who have signed contracts agreeing to use gas at a stipulated price to pay a higher price If you secure tho amendment you ask for?" Evades Direct Answer. To speak the truth, Mr. Snow evaded a direct answer to this query. He said: "Wo expect to carry out every obligation that wo havo mado. We expect to give the peoplo a service ami quality of gas second to none In the United States, to carry out our work upon broad, generous lines, which should and will mean satis faction to every one." Dodges Once More. "Docs that mean that the contracts with prospective consumers will bo carried car-ried out as signed?" "My first answer covers tho ground, I havo said that we expect to carry out our obligations. I will say, however, that we aro asking for tho right to Increase the maximum price of gas. It does not necessarily ne-cessarily mean that we will charge that figure Evon If we do, the peoplo will bo getting a superior gas at a less price than In any other city in tho country." Reason for Increase. "What Is tho specific reason for the proposed lncrcn.se?" ' "1 do not desire to go Into detail Into tho business of tho promoters, but I will say that Mr. Granger Farwell of Chicago, who ,1s financing tho business, and Mr. Douglas Smith, his client, havo been here to inspect tho city and Its prospects. They found It a city of magnlllcent distances, dis-tances, sparsely populated In some sections. sec-tions. It Is estimated that to cover Salt Luke with gas mains will require an outlay out-lay of at least $300,000 more than would supply mains for a similar population In an Eastern city. "Want to Rush "Work. "In return for tho Increase In the maximum max-imum price to be charged we agree to lay forty miles of mains within two years, Instead of twenty miles as at first agreed and tho company expects to lay eighty miles of mnlns without delay, thus giving tho people an earlier opportunity to get cheaper gas. nnd we also Intend to construct con-struct the llnest gns plant In tho United States. We will also Install service pipes and meters free of churgc, something that, so far as I know, no other gas company com-pany in the United States Is doing at the present time. Begin Work in Spring. "Construction work, for which tho plans are now being prepared, will begin In April of this year. Wo expect to render good services to consumers In April or May of 1S07, and earlier, If possible. Still a Cheap Gas. "Even ohould tho maximum rales be charged, the consumers will be getting a much cheaper service than heretofore On fuel gns the saving will bo 11 cents per thousand cubic feet and on Illuminating gas 30 cents per thousand cubic feet." Views of an Attorney. Attorney A. T. Sanford, who has taken a deep Interest in the gas question. In an Interview Wednesday night, clearly ex-prcsoed ex-prcsoed what mnny another cltlze'n has put in less forcible language, Mr. Sanford San-ford said: "It Is fair to presumo that the promoters, pro-moters, before securing the franchise, made a thorough Investigation of the subject sub-ject and determined the price at which gas could be produced at a profit to themselves. them-selves. Runs Long Time. "Upon an agreement to furnish gas at a stipulated price a franchise was granted for a term of fifty years. Before they have oven begun the construction of their plant they nsk for un Increase of about 13 per cenf In the price of fuel gn and about 8 per cent In tho price of Illuminating Illuminat-ing gas. Will Make Big Difference. "The promoters havo stated that within with-in live years they expected to havo an Income In-come of $300,000 per year. The proposed Increase means a difference of J10.000 per year on that basis, which the people must pay. In fifty years this will amount to $2,000,000. all of which extra money comes out of tho pockets vof tho consumers. Nothing in Return. "What tho promoters offer to give In return for the right to make this Increase In-crease In price amounts to practically nothing for the consumer. If the mains are laid In two years Instead of four years, that means that Increased revenue will come that much ooner to the gas people. Tho free Installation of service pipes and meters Is naturally required by a new company competing agnlnst an old one In order to get tho business." Opinion of City Attorney. City Attorney Hlles has prepared an opinion for submission to the City Council Coun-cil this evening, In which he takes tho ground that tho proposed amendments might invalidate tho $10,000 bond given to tho city by the gas people. The Cltv Attorney At-torney accordingly advises the Council that the safo method will be to secure tho written consent of the bondsmen to the proposed amendments and to have them waive any rights that they might have as r result of the amendments. Judge Hlles takes this view because of the fact that the amendments require tho company to do a greater amount of work In less time than Is contemplated In tho original franchises fran-chises in which the bond Is given. |
