The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-05-04

low and Mr. NeWhOuSe and his man
aCer. Lafayette HanChett, were qUes-
TONED as to their intentions in the
event of the council granting the pro-
posed franchise
Million Dollars Is Ready.
Mr. Newhouse said he and his assoc
Ciates would spend any sum necessary
Up to 81 600 600 i'm putting TN a complete
modern electric lighting and power
plant. and asserted that " hat ne pro-
posed doing was but the beginning of
big things iu a financial and industrial
way for salt Lake city
He was willing. me said, to have the
council impose any reasonable TeStrIc-
tons on him and would pay the city
percentage of ross earnings of the
lighting and power plant He did not
ask for AN exclusive franchise belieE-
Sug that Salt Lake city would grow so
rapidly that there would be plenty OF
business for two or more companies
After discussing the ordinance for
couple of hours. the committee ad-
iOurned for two weeks. The adjourn
ment for this length of time was taken
because all but three or four of the
CounciImeu are going ON a trip to Los
Angeles, and Mir. Newhouse viii be out
of the city for several days.
Mr.. Rewhouse Outlines Plans.
After the ordinance was read. Chair
man FernStrom said the committee
would like 10 hear from Mr- NeWhouse-
In response To questions by President
Hewlett and others. Mr. NeWhouSP said
he had submitted an ordinance that
was plain. direct and ugambiguous- II
asked for a franchise Tor an electric
lighting and power system. nothing
more or less He would be pleased he
said. to answer any questions in regard
10 the franchise
President Hewlett asked Mt. New
house what he proposed giving Salt
Lake city i'm return for the franchise.
Mr. Newhouse replied that he would
give anything within reason Il have
not" said he given the matter of
compensatiug the city any thought
having been very busy. besides making
Il trip to Europe since I made the ap-
pligation- 7 have made proposal to
furnish lights to- the people Of salt Lake
a s. Ii per cent reduction ON the prices
they are now paving. and 7 consider
that giving considerable. This means
light at 10 cents per kl"watJ hour
City to Share in Profits.
President Hewlett admitted that the
reduction iu the price of lights If made
by the Utah Light < Railway com
pdny. would be due To the proposal of
Mr.. \ewhouSo- Councilman Wells and
RHIeT men. ihtI- %. IlEf. ftrtlI.HlI wanted
n more definite answer us 90 what com
ueusatiou Mr. NeVhnuse would he viii
ing 10 give the city and he said he
thought the most equitable arrange
meut for his proposed or any other
lighting company would be To pay
percentage of it's gross receipts to the
city. IF You are going 90 require com
pensatiOu." said ne. THE best thing is
10 levy a taE on the gross revenue of
the plant That would be faiTer than
asking a lump sum"
The reference TO the lump sum made
by Mr. NeWhOuSe was i'm RESPONSE To
the statement by Chairman Fernstrom
that the Utah Light d Railway COM
pauy ia giving the city about 50 600
worth Of lights n year. and promises to
give IL additional lights and power.
Mr.. \ewhoUse said ne thought from
I, TO I per cent of the gross receipts of
tho plant would be adequate c0mpeu-
satiOu for ne city. and Mr. HaUChett
explained that Z per cent gross would
amount to 10 or ID per cent net. Then
Mr.. NeWhouSe said a gross. percentage
would be better for the city than n ret
percentage. because the net percentage
Of the plant might he eaten uu bz nigh
salaries and big running expenses.
Will Also Furnish LIGHT.
CouuciImeu Wells. Feru-trom and Tud-
dcUHam did Not take kindly To- the pro-
posed pcT cont on Tho gross revenue
and arEUed that 10 would not give tho
city as much a~ ir D. getting or going
to get from jho tain Light x Railway
company
An right" said Mr. Nrwhouer. ..r
power the Utah Iicht * Railway com !
pauy D. giving }oI in place co. the 3 per
cent gross
Couucilmcn HOLIDAY Martin and Uar-
1sTstciu showed that the Utah IfgHt .
4 Railway company Is giving a part or .
what DO furnishes the ,ifv free fu COM +
sideratiuu of getting "a street railway as .
Well aS lighting franchise Council .
man HOLIDAY said AT least Suu0 a year .
should Do paid hy On" company as bonus I.
for its street railway rights
M. NcwhpUse said that his onfy rcs-
son for putting i'm his application for 4 /
franchise was his desire 20 give the peo-
pIe Of Salt Lake. cheaper lights and /
good service. II have business enough ]
without going into the lighting business 90 /
said he and I DO not want 10 be con-
sideTed aS a Suppliant for franchise /
But If You grant mo the franchise I
propose TO nut iu an the money neces- /
sary TO make IL a first class modern :
will spend half 81 million. YES. mil
lion dollars. 10 viii not b. - question I
OF money with mo. but matter of pride .
II I go into it
Opposes Municipal Ownership.
Councilman Hartenstein asked If Mr..
NeWhOusC would be willing TO have a /
municipal ownership clause in the fran
chiSe-
Mr.. NewhouSe referred tho question te /
Mr. Hauchett. who said he did not be