The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-02-06
CITY AND WATER WORKS
A. l.. MASON SUGGESTS A PLAN FOR
MUNICIPAL CONTROL.
Legislature to Provide for a Separate
Corporation, with Power of
Eminent Domain.

A plan for the city owning the water works
plant is suggested by Augustus L. Ma
son, who had a hand in the construction of
the city charter and who has been a care
full student of municipal problems. Under
Mr. Mason's plan it appears that the city
could acquire control over The plant and
regulate its operation so that the cost to
the public would be at the minimum, with
out investing a dollar, thus getting around
the objection so frequently raised that the
constitutional provision is that the limit of
Indebtedness shall not exceed per cent.
Mr.. Mason would have the Legislature
enact law providing for the formation CT
a separate corporation, to be under the con-
troll of the city and vested with the power
of eminent domain, which would give it the
right to condemn and take for public use
the existing water works plant. Mr.. Mason
cites the laws governing railroad companies,
which confers OH them the power of eminent
domain in order to permit them to condemn
nriyate property for their rights of way.
Such plan, of course, would mean that
the present owners should be fairly compen-
stated for the property taken from them,
the value of it to be fixed by a court Of au-
thorized jurisdiction. He would have the
stock held By the city. The directors of the
for the purchase of the plant based on its
value. The undertaking would not be one
for private profit. If any profits accrued,
they would be for the benefit of the whole
people Mr. Mason's idea, however, would
be to have the plant run without monetary
profit: in other words, so that the returns
from the business should be barely sufficient
TO operate and maintain the plant, the mon
ey now being accumulated by private con-
Germ to go into the pockets of the people IN
the way of reduction in water rates 10 the
patrons The idea would be not to operate
the plant for money making purposes, out
rather for the good of the citizens or the
city. Mr.. Mason believes that all pubic
utilities such as the water works, hshtihg
plants and street railroads should DE con-
trolled by the city and operated at the low
est possible price to patrons lie preolcts
that the present generation will see water
works, lighting plants and street railways
operated by independent corporations under
the control of and for the benefit or the
cities.
"Sueh an effect might be accomplished
bv A law providing for one corporation 70
manage all such business - water Worhs'
lighting plants and street railroads-or IL
might simply authorize the formation OF
distinct corporations for each business, the
financial management to be under the con- on,
troll Of different men, That would De my
plan. The prime idea Is to provide Tor the
formation of such corporations and 70 con-
fer on them the power OF eminent tnx eo erst
ing properties for the good OF the Wnole
people, of course compromising plesehs
owners for their investment on a basis OF
their actual value. The franchise value
would not be taken into account, as tnat is
the property of the city There are cues
how n a m
sidered when it came to drafting law.
general law might be drawn that would APP
ply to all the cities of the, state, or the
charter of Indianapolis might be amended
so as to apply only to conditions mere IN
der the present charter the city may own
stock in such corporations, out the laws avs
confer on corporations the power OF emil
nent domain.
my mind, of grave import, is how the direc-
tors of the corporations that have the
control should be selected, whether by vote
of the people at separate elections, as the
school commissioners are now selected, by
appointment Of the mayor or by authorlZ-
ing the mayor. to vote the stock. Al Ma adj
proved unwise. 1t has succeeded in some
places, but as a general thing 1t has proved
unsatisfactory MY ldea Is 5nar e 9ne pest tha
responsibility of selecting the drectors-in
fact, to create another department under
his control that he would be responsible
for, as he is for the Board of Public
Works"
Mr.. Mason seems to think that the pres
ent laws regulating the formation OF school
boards give the best illustration possible
of the evils of placing vital business in
the hands of boards to be. elected. The GUS
tom is adverse to the very spirit of the
charter which places the responsibility for
executive management on one head. In
the management of such public utilities as
might be assumed by the city he thinks
that the spirit of the charter should be fol-
lowed and the responsibility lodged where
1t now is in other executive actions of the
city government.
special law that would be applicable
to the whole State might be advisable, from
the fact that SO many municipalities are
agitating the question of owning their own
water works and lighting plants. At the
same time, Mr.. Mason says, 1t might be
easier to get a law passed that would ap
ply only to indianapolis. In his estimation
the public possession of the water works
Genes first in Importance, after that the
lighting plants gas and electric, and
toward the bottom of the list the street
railroads. Mr. Mason is supported by +.
B. Martindale in the idea that there would
be no trouble in an Independent corporation
floating bonds for purchasing existing prop
city bonds. for, while the city would have
no actual liability on them, they would be
virtually considered as city Indebtedness.
The strong point is that by such an ar
rangement the constitutional inhibition
against exceeding per cent of the tax
able property in creating municipal liabili-
ties would be avoided
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