The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-04-23
SHALL THE CITY OWN TIE PLANT7

The journal heartily approves of the
provision in the new street. railroad
charter which gives the city the option
of becoming the owner of the plant at
the end of thirty years at an appraised
valuation. 1t would have been better
pleased if such an option could have
been secured at the end of fifteen or
twenty years, thus giving the city the
right at the expiration of that period of
becoming the owner of the plant if it
were able and wished to do so; but the
present provision covers the point with
out an unreasonable extension of time.
and may be in some respects preferable.
No doubt it is more acceptable to the
company bidding for the franchise.
AS the new charter gives the city the
optional right to purchase the plant at
the expiration of thirty years the Coun-
Gil ought at an early day to take into
consideration the propriety of provid-
ing ways and means to meet that con-
tingency. As the annual payments on
gross receipts will yield revenue to
the city of more than $4,000 during
the thirty years life of the char
ter it ought not to be difficult to provide
a sinking fund which, with accruing in
terest, will enable the city to pay for
the plant ct the end of that period if It
so desires. If it be seid that the plant
will probably greatly increase in value
by reason of new lines, suburban extern
sions, etc., we reply that the city will
be virtually partner in ali such extern
sions. and will profit by every increase
of business. The more lines the more
business. and the greater the gross re-
ceipts of the company the larger will be
the city's percentage. The charter fixes
no maximum limit to the gross receipts
on which a percentage is to be paid. No
matter how large the receipts may be,
the city is to get fixed share. If the
receipts during the second fifteen years
of the life of the charter are three or
| four times as great as during the first
fifteen years the city's percentage will
be proportionally increased, so that. no
matter how much the value of the plant
may be increased, the city's ability to
purchase it will increase in the same
proportion.
1t is probable that before thirty years
have passed 1t will be the settled policy
of all American cities to own such pub
lie works as street-railroad plants, water
works and electric-lieht plants. Even
now there are not more than three or
four cities in the United States, of which
Indianapolis is one. that do not own
their water works, Chicago owns her
electric-light plant. In his recent mes
sage to the City Council. Mayor Stew
art, of Philadelphia, recommends that
the city establish it's own electric-light
plant. The Philadelphia Press declares
that the experience of that city has
proved the wisdom and economy of
municipal ownership of gas works, and
it sees no reason why the city should
not own its electric plant.
In view of the fact that public senti-
ment is tending steadily and strongly
towards the municipal ownership of
public works and that the new charter
gives the city the optional right of
purchasing the street-railroad plant at
the end,Of thirty years at an appraised
valuation, we think the Council should
give careful consideration to the ques-
ton of providing ways and means for
such purchase.