The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1905-12-08
AGAINST FRENzlED FINANCE
Citizen Hitchcock Writes Strongly in

Citizen Hitchcock Writes Strongly in
Defense of the Public Utilities
of the City.
| Editor Republicans
Relative to the proposed electric
light franchise now before the city
council, it is stated repeatedly by
those favoring the granting of the
franchise at the present time,.- that
the franchise is not exclusive and
that any person, or the city, at any
time. may install and operate anoth-
er plant, either for gas or electric
light. This may be true so far as the
the letter tf the franchise show.
However. practically, in the cities of
the size OF Mitchell the gas company
or electric company which first gets
possession of the field has a monopoly
of the business as there are not
enough consumers to make it protita-
BILE to divide the income. Neither
the city or another company, in such
case, would care to enter such a field
aud compete with the existing plant.
no matter how defective the plant
or how much complaint against the
service. This is the rule in every
line of business which requires con-
siderable capital and which requires
a certain amount of custom in order
to p%rofitably conduct a plant. Hence.
if the proposed franchise, or one
similar to it, is granted at this time
the gas plant and electric plant OF
the city passes into one management
and there will be no competition be-
tween che two. In operation these
two industries are separate and dis
Itinct, there being no benefit by COM
bination SO as to lessen the expense
OF running, TO any practical extent,
Except the clerical work of manage
ment. Considerable interest and
pleasure was manifested by the citi-
zens of Mitchell when it was known
that a gas company was to install
lights in the city, by reason Of the
fact that it was thought the city
would get better service AMI more
%courtesies from both plants by rea-
son of the competition. The result
was as anticipated as more improve
ments and better service we're rem
dered by the electric light company
by reason Of the expected competi-
tton of the gas company. Now it is
proposed to take away this competi.
tion and place the whole system Of
lighting the city into a monopoly for
the next twenty years.
The records of Dawson county show
that on November 5, 1904, at the
thine the gas plant was installed. a
deed Of trust was executed b. the
Mitchell Gas Company to secure the
payment OF bonds to the amount of
S75, 600. This deed OF trust was eX-
rcuted IN favor of the Merchants
Il LOdIIa ~ u IuSIS Opl1dllJ vi SAtGuEO.
This trust deed vas recorded No
vember %, 1904, i'm Book SO, page ] i.
and can be examined by any person.
Ion SEPTEMBER % 1905, the Mitchell
Gas Company executed another deed
LOT trust to the said Merchants Loan
& Trust Company for the real estate
and personal property embraced IN
the electric light plant. This second
deed Of trust was filed with the reg
lister OF deeds, November Is, 1905,
and is open for public examination.
1t is said that Mr.. King has not heen
able to negotiate the sale Of these
bonds and desires the city to grant
the new franchise to enable him to
accomplish this purpose. 1t is not
the fault Of Mr.. KING that these
bonds have not heen negotiated but
rather the %precaution Of the capital
lists in Chicago. These records more
clearly disclose the real intent Of Mr..
King Of acquiring this property
than any amount Of street talk.
The history of the financial world
of this country is rep!ete for the past
Twenty-Five years with brilliant
strokes Of N%apoleonic inanciering.
Railroads have been constructed at
a cost Of $40. 900 a mile and bonded
foa many times that SUN. The bond
holders then expect to get sufficient
profits to pay a reasonable rate per
cent on the full amount Of the bonds,
although representing many times
the cost OF the industry. Trusts in
all lines Of trade have been formed
and then bonded in similar form by