The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1894-01-26
ALDERMAN HIGGSsSPEAKS.
There Are Many Things to Consider
in Relation to City Ownership
of Electric Lights.
A Readable Letter Full of Sensible
Considerations.
CHICAGO, Ill, Jan. IS. 1894


EDITOR FREE PRESS:
l consider Jh question that is now
before the city council and before The
citizens Of MankatC OF the future
lighting of our city TO be the most i'm
porJanG subject that will PROBABLY be
considered 10y the present council.
1t is question that involves much
and it should be decided in the man-
ner that will promote the greatest
good to the city and it's ciJlZans as
near as we can ascertain the way that
will secure the end.
La view of the fact that there has
been much misinfOrmatiOn given and
many mlS-StatemenUs made by por-
tiOn Of the press of The city In regard
to this question and the altitude Of
the writer an0 other mem bers of the
council toward IL, L would Ike to
place the matter before your readers
as 1t appears to me.
LIZ is perhaps pretty generally
known that as d rule aud On general
principles am in favor of municipal
control OF Lighting plants. There are
cases, however, where This rule is not
expedient. Ii is possible the case of
MdnkatO at this time may be one of
the exceptions. | do not say [ think
it is, OuJ it may be. 1t depends on
future developments and is Ques-
tioo The people who pay the taxes
should decide, and Wnen l find out
what the taxpayers, knowing the
facts, want, my vote in the couu Gil
will be in accordance with it.
Ii We had no Electric Light Co. here
and were financially in a condition
which wOulG Justify ill.,, | should say
We should not hesitate minute
about esJablB shlDg an electric light
plant TO be operated by the city,
and to furnish light both public and
private to all who want it, at the &C
tual cost of production aud maInJen-
ance. In our desire TO carry ut this
idea, however, we are hampered by
several things each one OF which
should be carefully considered before
We act.
1t is but fair that We should take
into consideration The facJ that Ger
tain of Oar citizens have established
lighting piant here and haye their
M Dey Invested in IL; we should not
lightly and hastily take such action
as would destroy The business Of this
COMPANY dbu III oCUlCdiiy OOuuSCdUS'
their property just because we have
the power TO 90 So
There has also been considerable
preliminary work done toward the es
tablishmeDt of an electric railway
here. 1t would probably been run
ming now but for the financial crisis of
last summer.
l am informed on what would be
considered creditable authority that
il has been considered a sure thing
for the coming summer. Any one
knows however that an electric street
Car line could not be made to pay in
a city like ManKato unless more or
less lighting were done with it from
the same plant, Those who are
posted ell me the establishment of a
city plant would surely defeat the
prOjt.' IF an electric street railway
On tn, oluer hand I am informed
that thp>e VINO are interested in the
prOn0%nd electric street rail way
vi .uake d Did on city lighting. This
- = ua,ter which should he certainly
T. ~idtred in making our decision.
very important question also to
lie Coz SIdered is the matter of finan-
Co.. We have an empty treasury, the
entire tax collection of the present
year having been anticipated and
spent before it was received by the
city and before the present council
came into office.
The city is paying its necessary run
ming expenses now and has been for
some time with money borrowed from
banks and individuals. In spite Of
the most rigid economy we cannot
hope TO be less than twenty-five thou
sand dollars behind before we get the
next tax settlement.
The only way we can go into cleo
trio lighting is by issuing bonds. If
we establish an electric light plant
we should make it large enough to
furnish liggb to all of our citizens who
want it A plant of sufficient capa-
city to do this would cost some where
from fifty to one hundred Thousand
dollars. The city Of Rochester has
just put in one costing So, 900 which
is probably about J the size which
would be required here. We
have SSl 900 in bonds maturing next
October. About $40, 900 of these must
be refunded 1.-THE balence being paid
from the sinking fund.- The estah-
liShment Of plant therefore of suf-
ticient capacity TO meet the wants of
our citizens would neceSSitate put
ting on to the market within the next
few months Of $4,000 to $4,000 n
city bonds. L have talked with d
number OF the best financial men q
the city who are all agreed that this
Is very risky Thing TO do, partly in
view OF the poor financial statement
the city would make, but chiefly Ow-
ing TO the condition of the bond mar
keJ in the financial centerS of the
country. | have recently correspond
cd with the leading financial AGENTS
III the east 10 regard To our refundlng
bonds which We must sell prior to
next October, we hoped to refund
these bonds, which now draw per
Cent. al per cent thus saving ST 400
annually Iii interest; every reply |
have is TO The effect that per cent.
bonds will not Sell now on the pre-
sent market and that the demand
for municipal bonds of any kind is ex-
tremely light. L. is of course TO be
hoped that the condition will i'm
prove SO that we may be able to sell
our refunding bonds before October
next with no higher rate of interest
than nor cant