Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1897-03-25
Electric Light Co. on the Co=opera=
tive Plan.

/ At the Business Mems meeting held
at their rooms on the 10Th inst. the I'M
derslgned were appointed 4 committee to
prepare articles of Incorporation, and
to organize an electric light company
on the mutual plan, similar to that upon
which the Wood County Telephone Co.
is now operated.
AS many features of the proposed
! plan are wholly new in the history of
corporations, it is best that your COM
mittee, before acting in the matter, give
at least a rough outline sketch Of the
plan to be adopted, and the course to
be pursued.
We will first prepare articles of inCOr
poration to be signed by fifteen or
twenty of the users of electric lights,
who will pay one dollar at the time of
signing to cover the expenses of incor-
porating. The purpose Of the corpora
ton will be to furnish light and power.
The capital stock will be fixed at $15,-
10000, to be divided into 5000 shares of
$500 each. The board of directors
shall consist Of five members. The
stock shall be sold only to persons who
rent lights or power from the company.
We will then open our books for sub
scriptions-selling one share of stock
| $500 for each incandescent light, and
twenty shares Of stock ($1O000l for each
arc light. The company shall reserve
the right to purchase at par the stock of
any holder who holds more shares than
| he rents incandescent or arc lights or
| power.
Holders of electric light stock wishing
to dispose of it must first offer the stock
to the company before disposing of it
elsewhere.
When One-half or more of the capital
stock has been subscribed for, we will
then open up our books for those who
wish to rent lights, and when three
fourths of the present users of electric
lights in Grand Rapids aud Centralia
/ have agreed TO rent from this company,
we will then call meeting of the sub
scribers to stock, and elect board Of
directors, and submit the question as to
whether we should proceed to put in a
plant. We would not advise the pur-
chase of plant unless two-thirds of the
subscribers to stock are in favor of it.
AS there will be those who will rent,
| but who will not subscribe for stock,
we should provide that a dividend of
not less than one per cent. month
! that is y per cent. per annum should
! be declared on stock, and added to the
expense account, also that sinking
! fund of one-half of one per cent.
should be set apart for future repairs
and reconstruction, and added to the
same account, and that the company
should 50 regulate its rental charges as
to make the rental income eq ual to the
costs Of maintaining the plant.
A franchise should then be secured
from each Of the cities, and upon con-
ditions, that the corporation should at
all times be prepared to sell stock to
any user of electric light or power in
the two cities at par, to an amount
equivalent to his rental; that it should
furnish light to each of the cities at
cost. Also reserving to the cities the
right at any time to purchase the plant
at cost less the depreciation on account
of wear.
The aim of our plan is to lessen the
appetite of the Corporation hog" and
remove his tusks and bristles-to work
/ him over into lamb.
But the business Of furnishing to the
people Of city their water supply,
telephone service or light is natural
monopoly. There is no room for two
competing plants. Such cannot be run
on the basis Of competition, competition
in this is waste and should not be toler-
ated We should move together if we
move at all.
The lighting plant should be owned
by the users on mutual plan, or CO.
operative plan, such as we here pro-
pose, or by the cities. In the divided
condition of this community into two
municipal corporations where there
ought to be only one, municipal owner
! ship is not possible. Therefore the
plan we propose is the only one that
( can now be considered.
! 1t is not necessary that We rush into
this next week or even next month,
| but 1t is important that we unite and
/ organize and be ready for action when
( the occasion rpOUITPS
Signed, JOHN \. GAYNoR,
/ F. MACkINNoN.