The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-11-30
THE CITY's ELECTRIC LIGHT CON
TRACT.

Former City Civil Engineer Jeup favors
the public with his views and recommenda-
tions regarding future city Improvements
and contracts. Mr.. Jeup's recommendations
probably carried more weight with former
administration than they will with the
present one. especially as. being now in
business on his own account, he may net be
entirely disinterested. He says among other
things that the most important contract
which will be let during the present admin
istration is the electric light contract. This
is probably true. unless unforeseen circum-
stances should arise requiring the letting of
some contract not now contemplated. The
present electric lighting contract with the
Indianapolis Light and Power Company
was made in July, 1898, for ten years, and
will therefore expire in July. 1893. Mr.. Jeup
thinks the city should make a new contract
as early as June. 1902, more than a year be
fore the present one expires. He says the
longer the letting OF this contract is de-
layed the poorer the competition will be and
the higher the price which the city will
have TO pay for public lights, and that if
the letting is delayed longer than June,
1902, lit will be practically impossible for
any outside company to bid in competition
with the home companies, as it will be
almost impossible TO construct and equip a
new plant and have the same in successful
operation before the present contract ex-
pres" No doubt hat is true, but the city
may not have the same interest in promot-
ing the construction of new electric plants
that Mr.. Jeup has. On general principles
the suggestion that the city should enter
into a new contract more than a year before
the old one expires does not seem to be
wise. As a new contract could not tax
effect till the old one expired nothing would
be gained, unless the substitution Of a new
plant for an established one would be a
gain, and it would be just as apt to prove a
loss. Even if the present company were
giving unsatisfactory service it could not
be displaced before the expiration of it's
contract, but as a matter Of fact it is Civ
ing satisfactory service to the public and
the city. Under the ordinance of 1883 il
pays the city 3 per cent. OF it's gross re-
ceipts. This now amounts TO over $4,000
a year. and no other company under a
new contract could be required to pay more.
In further support of his suggestion that
the city make a new contract a year be-
fore the old one expires Mr.. Jeup says:
Companies have signihed their intention
Of bidding on a fifteen-year contract, and
bidding less per light than the city is pay
ing at the present time. and will furnish
light on all-night schedule and turn over
the plant in proper condition at the ex-
piration of the contract period" Mr.. Jeup
seems to be in communication with other
companies. To a disinterested person it
would seem that the existing company, with
a plant already established and we'll
equipped, is in at least as good a position 70
offer the city a better contract than the
present one as any other company can be.
AS to acquiring the plant at the expiration
of the contract period, the city can do that
if thought advisable without any provi-
sion in the contract. The charter author
ICES the city 'tO purchase or erect, by con-
tract or otherwise, and operate gas works,
electric light works, etc. " s . for the
purpose or supplying such city ana the
suburbs thereof, or TO purchase or hold a
majority of the stock in corporations or
ganized for either of the above purposes"
Under this provision the city, at the eX-
~piration OF any contract with a water
works, gas works or electric light COM
pany may. by the right OF eminent domain,
become the purchaser and owner OF the
plant if it so desires without any special
provision to that effect in the contract.
Finally. there are special reasons why the
city should not enter into a new contract
for electric lighting a whole year before
the present contract expires. The electric
business Is in it's infancy and in a state Of
constant transition and progress. 1t changes
and improves not only from year to year,
but almost from month to month. 4 con-
tract with any company made in June,
1902, and regarded as a good one at that
time might be behind the times a year
later. There are good business reasons for
postponing the making of a new contract
until on the eve OF the expiration Of the
present one.