The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1899-10-19
PASSED OVER HIS HEAD
Mayor Mccarthy Vetoes the Elec-
trio Light Franchise.
STATES MANY OBJECTIONS
The Company, However, Must Put Up
800, 900 Bonds - Bids for Lump
and Sack Coal All Alike-Mc-
Arthur Thinks It's Job.


Gil, by a unanimous vote and without
discussion, voted a 10-year contract to
the Butte General Electric company for
the lighting Of the city's streets. The
mayors veto was presented last night
and is as follows:
Butte, Mont, Oct. IS. 1S99.-To the
City Council of the City of Butte: Cen
tlemen-I have had under considera-
ton the matter of lighting the streets
and alleys and buildings of the city
of Butte. find upon investigate that
the present and existing contract for
that purpose has yet more than 20
months of life.
ION the 18th day of September of
this year the clerk, under direction of
the city council, gave notice for the
reception of bids On the goth day of
the same month for furnishing such
lights for a period of 10 years from
the first day of July, 1901. This notice
being for such a short period, and in
a local paper, there being but one
plant capable of furnishing such lights
to the city in operation within the
city at this time, in my Judgment was
not calculated to insure whatever ad-
vantage might accrue to the city by
reason of competitive offers.
In response to this notice one pro-
posal was received, this being from the
Butte General Electric company, with
which proposal you are familiar, the
same being on file in the office of the
clerk. This proposal having been re-
ferred to proper committee, and that
committee having reported favorably
on the offer, the council at it's last reg
ular meeting approved said report and
ordered the contract awarded to said
bidder.
mot having seen the proposal and
there being no discussion upon the
merits .of said offer, or the advantage
or disadvantage of entering into such
contract, I was at that time not adj
vised as to it's terms or the scope of
the contemplated agreement. Since
then, however. I have given the mat
ter consideration and l find that in
order to lessen the price per light from
the contract price which we now have
it becomes necessary to increase the
yearly contract Indebtedness of the
city very materially for a period ex-
piring almost u years from now. In
view of the fact that the city may in
the next - years materially increase
in wealth and population without q
corresponding increase in territory, I
see no reason to anticipate a very ma
terial increase in the demand for
lights.
and again, judging from the past,
we are fully aware that every year we
see the cost of the production of the
output of such industries as this. con-
tract deals with decreased; and hence
1t is fair to presume and conjecture
that within three, five Or seven years
much better contract price might
be obtained for this light service by
the city than the one proposed, and es-
pecially SO when the probability of COM
petition shall enter into the making of
the offers under which said contract
shall be let.
Then. again, the proposal provides
to comply in part with the demands
OF the light and building committee.
tBy the way, such demands We're not
made public and, therefore could not
have been understood by others who
might, under sufficient motive, have
made like offer) It is to pay into
the city treasury yearly 1 per cent per
annum Of our gross receipts as long as
we are the only company furnishing
light and power in Butte This burden
imposed upon the bidder certainly in
f1uenced them in fixing the price Of their
light, and, inasmuch as it is made a
continuing obligation on their part only
so long as it shall be and remain the
only furnisher of light and power in the
city of Butte, it becomes material
factor in preventing others from OBJ
plant in the city of Butte, as all those
who contemplated embarking in such
an industry would necessarily be COM
PEELED to obtain permission from the
city of Butte; and, in order to grant
such permission, the city would be COM
PEELED to release a portion of its year.
ly revenues. This being restrictive in
my opinion, and against the law of
this state, which says, No special priv
ilege shall be granted to any person. Is
against public policy, and therefore il
legal.
Again, taking favorable view of
the proposed contract that is, that it
will prove an advantageous one to the
city, and on the terms and conditions
of which this city in future would de-
sire to see carried out, supposing; the
cost of production Of light should ma
terially increase so that the contra ct
would not prove favorable one to the
bidder and furnisher, there is no under
taking or bond as a guarantee that it
would be faithfully performed during
the term of it's life; and, hence no pro-
lection to the city is given against the
termination of it by the act of the con-
tractor alone. If this contract be en-
tered into, there is no power by which
the city could compel the contractor,
should fear overtake it, to execute such
bond.
For the foregoing reasons, I deem it
my duty to veto the action of the city
council at its last regular meeting, on
the 4th day Of October 1889, in accept
ing said proposal and ordering the con-
tract awarded to the Butte General
Electric company for light for the city
of Butte for period of 10 years begin
ming July /, 1901. which is accordingly
done. Respectfully submitted,
~. H. MCCARTHY,
Mayor of the City of Butte"
Aldermen Siebenaler, Elderkn and
Bryant spoke in favor of the franchise
and expressed doubt as to the right of
the mayor to veto the contract. H, W.
Turner, manager of the company, was
granted the privilege of the floor and
said that the company Is ready to put
up bonds as soon as the contract is
signed.
After a long discussion, the council
voted unanimously not to sustain the
veto of the mayor. 1t was then voted
that the electric light company be re-
qutred to put up 100000 bonds.
The police committee reported in IA
NOr of the intro6rction 0f tho Datrol