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Austin Gas Works Franchise Approved 1873

Friday, October 31, 1873 special called

Gas monopoly granted: The city council approved an exclusive 25-year contract with Sylvester Watts of St. Louis to build and operate Austin's first gas works, giving him sole rights to lay pipes and supply gas throughout the city.

Price controls established: Gas prices were capped at $7 per 1,000 cubic feet, with a requirement that the company provide quality gas equivalent to at least 15 candlepower. If Houston charged less, Austin's price would match it.

Construction deadline set: Watts was required to begin construction by February 1877 and complete the gas works by December 1877, or lose his franchise rights.

Tax incentive offered: In exchange for providing gas to the city at a 10% discount for public use, the gas company and all its property would be exempt from city taxes for the 25-year contract period.

Election results certified: The council also certified the results of the November 3rd municipal election, confirming J.B. Wheeler as mayor and approving nine new aldermen for two-year terms.

Full Transcript

396 appointed as Judges, etc. before coming the Court and to ascertain of their acceptance, the motion was carried. There being no further business before the Council the meeting adjourned. Fred Blorging Recorder City Council Room. Austin, Tex. October 31st 1873 The City Council met pursuant to a call of His Honor F.B. Wheeler – Mayor. The Roll was called. Present: Aldermen J.F. Breed, C. Bremond, F.S. Boardman, Geo Buchanan, J. DeHole, Wm Bruggehoff, John H. Robinson, J.M. Hearing and A.H. Longley. Absent: Alderman D. Thompson. His Hon. the Mayor stated that the meeting was called to take some action on the Report of the Joint Committee on Gas Works. They having presented the following proceedings of said Committee. To wit - Meeting of Committee of Aldermen and Citizens. Austin, October 30th 1873 Committee to accept or reject Col. Watts proposition in regards the erection of Gas Works. Ald. Harrell in the Chair, Mr. Forster Secretary. After reading the ordinance and after filing such sections separately as per amended ordinance hereby attached. Alderman Bremond moved that the Committee of the whole do recommend Col. Watts propor- sition as per agreement to the acceptance of the City Council, and that that body be requested to pass an ordinance to that effect. J. Harrell Chairman Francis H. Forster Secretary. The ordinance recommended by said Committee was read, it not being full enough in its details it was therefor amended, and each section after being amended, adopted separately, and then read --- Page break --- 397 in whole as follows: Be it resolved by the City Council of the City of Austin. That Sylvester Watts of St. Louis Mo. his associates assigns or successors shall have the exclusive right to erect operate or maintain Gas Works within the limits of the City of Austin and the additions thereto and the exclusive right and privilege for laying gas pipes within the limits of said City and the additions thereto, in and along any Street Lane Alley or common in said City, provided the same shall be left in good condition. Sec. 2nd. That all such grants rights and privileges shall be enjoyed only upon condition that said Watts or his speciales assigns or successors shall furnish to the people of this City of Austin a good article of coal gas, of not less a standard than fifteen candles at a price not to exceed seven dollars per one thousand cubic feet; Provided that in the event gas shall at every time hereafter be furnished to the citizens of the City of Houston Texas by any other person or Company than the Barr [illegible] authorities of said City at a less than seven dollars per one thousand cubic feet then the maximum price of Gas in the City of Austin shall not exceed the latter price so charged. Provided That at no time shall the price of Gas in Austin exceed seven dollars per thousand feet. Sec. 3rd. The suspension of the supply of gas caused by injury to, or by the necessary or proper rebuilding of the said Gas Works or pipes, shall not work any forfeiture of rights herein granted. The City of Austin shall however have the right to declare all grants and privileges under this ordinance to be forfeited if the erection of said Gas Works shall not have been begun by the first of February 1877, and shall not be completed, and used, or gas not be furnished as above provided, by the first day of December A.D. 1877. Sec. 4th. That said Watts or his agents or successors shall have access to the premises of consumers of gas, to repair or supply any part of the gas app- --- Page break --- -paratus, and to shut off gas in three days after presentation of bill, if not paid, and to shut off gas, in case of fire or accident, if they think it necessary to protect the owners of said Gas Works from loss or damage. Provided, that the Company shall be required to put down pipes, and supply gas to any block in the contiguous to any other block or treatey provided with gas when application is made by any responsible consumers who will obligate themselves in aggregate to take twenty-five, lights and keep same in general use. Sec. 5th. All the rights, grants and privileges contained in this ordinance shall extend and be in full force for a period of twenty-five (25) years from the date said Company shall be first operated. It is further provided that if said Watts or his associates or assigns or successors, shall furnish the City of Austin with all gas for such public purposes as may be required by the City Council, at ten (10) per cent less than the amount charged to private consumers; in consideration of such deduction in price of gas, the said Gas Works, together with all offices, buildings, lots, stocks, bonds, fixtures or appurtenances pertaining to said Gas Works shall be, and the same are hereby exempted from any and all taxation by this City du= ring such time, as said Watts or his associates assigns or successors shall faithfully comply with the provisions of this ordinance. Sec. 6th. Should the said Watts or associates at any time within the next twenty-five years desire to sell, transfer, assign, and convey said Gas Works and every= thing thereto belonging or appertaining; then the said City of Austin should have the right priority of the right to purchase, if she will pay as much therefor as any other bidder. Sec. 7th. That the Mayor be authorized to enter into contract with the said Watts, and his associates for the construction of Gas Works in conformity with the provision of this ordinance. But should said Watts fail to enter into said contract within the next Thirty days, then this ordinance shall be null and void. Sec. 8th. All ordinances and parts of ordinances in conflict --- Page break --- 399 with this ordinance, was suspended, and the ordinance be in force and take effect from and its passage. On motion of Ald. Brueggestroff the rules were suspended, the ordinance read the second time, on motion of Ald. Brueggestroff the rules were further suspended the ordinance read by caption on motion of Ald. Longley the yeas and nays were called on its final passage resulting as follows: Yeas: Alds. Brismond, Bruggman, Brueggestroff, Brueggestroff, Robinson, Hornsby, and Longley, Nays: Ald. Bond. There being no further business before the Council the meeting adjourned. Fred Sterging Recorder Whereas the City Council of the City of Austin State of Texas by an Ordinance passed October 31st 1873, a certified copy of which said Ordinance is here to attached and made part of this Contract, Authorized the Mayor of said City to enter into a Contract with Sylvester Watts and his associates for the Construction of Gas Works in the conformity with the provisions of said Ordinance. Now therefore this agreement and Contract made and entered into this fourth day of November A. D. 1873, by and between J.B. Wheeler Mayor of said City of Austin of the one part and Syleester Watts and his associates successors and assigns of the other part Witneseth. First That said Sylvester Watts his associates successors, and assigns in consideration of the grants rights, franchises and privileges conferred in and by the ordinance aforesaid, hereby agree to construct, maintain and operate Gas Works within the limits of said City of Austin, as provided and stipulated in said Ordinance and to strictly comply with all of its provisions. Second That said J.B. Wheeler Mayor of said City of Austin in pursuance of power conferred --- Page break --- upon him by the Ordinance aforesaid, hereby agrees that if the said Gas Works are constructed maintained, by said Sylvester Watts his associates successors and assigns, as provided, and stipulated in the ordinance aforesaid, then all the rights franchises, privileges and grants secured to said Sylves- ter Watts and his associates by the Ordinance aforesaid shall be, and are hereby confirmed. In Witness whereof said parties have here to set their hands, and seals (using scrolls for seals) this fourth day of November A.D. 1873. in duplicate Witness. J.B. Wheeler Mayor [Seal] Sylvester Watts [Seal] City Council Room Austin Tex. November 8/73. The City Council, pursuant to a call of His Honor J.B. Wheeler Mayor. The roll being called, the following Aldemen answered to their names, to wit: J.E. Bremond, G.I. Boardman, A. Scholz, Wm. Burghgoff, J.H. Robinson, A.H. Longley, Albert Todd, G.S. Supmann, J.H. Channing, and B. Thompson. The Mayor stated that the meeting was called for the purpose of receiving the report of the judges of the city election held on the third day of November 1873. The certificate and poll books of said Judges of the election were then read, received and adopted. Ald. Longley offered the following resolution, which passed unanimously: Be it resolved by the City Council of the City of Austin, That His Honor the Mayor be, and he is hereby requested to notify J.B. Wheeler that he was elected Mayor, J.H. Long that he was elected Marshal J.H. Howard that he was elected Treasurer, J.E. Bremond, G.I. Boardman, Ed Christian, C.S. Cowan, A. Todd, A. Scholz, Wm. Burghgoff, John H. Robinson, and H.B. Mitchell, that they were elected Aldermen of the City of Austin for the term of two years, at an election held on Nov.