The labor world. [volume] (Duluth, Minn.) 1896-current, 1905-02-18
DULUTH SHOULD HAVE I.
!. RIGHT. |. TO ISSUE BONDS
City Council Would Not Abuse
Power Granted to it by
" State Legislature.
Right to 1ssueE Electric Lighting
Bonds Would Give City
Needed Club.

At the last meeting Of the City
Council the city attorney presented a
bill to be introduced into the Legisla-
ture, which, If enacted into law, will
give the city the right to issue bonds
for the purpose of building or pur-
chasing an electric light and power
plant. The bill, upon recommendation
of a committee consisting OF Aldermen
Sang, Barnes, Treyillion, Waugh and
McEwen, was endorsed by the City
Council. Immediately following this
action the News Tribune commented on
the action Of the council as follows:
by unanimous vote, at it's meeting
Monday evening, the city council man.
ifested it's determination to urge the
legislature to authorize cities OF 5O,OVO
Inhabitants to sell bonds for the pur-
pose of acquiring or controlling electric
light and power plants.
I'm other words, another addition to
the bonded Indebtedness Of Duluth is
contemplated
I'm view of the heavy burden under
which the city is now struggling, it re-
quires astounding temerity to advocate
any increase, yet the council has tossed
off this matter of bonding as If it were
a mere bagatelle.
lis there 50 ready market-such an
eager demand for Duluth bonds-that
no particular hesitancy in the matter
Of their issuance is necessary?
Are property owners paying so little
for the privilege of doing business here
that they are clamoring for higher tax
alton?
LAS a matter of fact, the city of
Duluth cannot afford to add to it's bur-
dens. With an assessed valuation of
$50, 000, 900 the bonded debt is now ap
proximately five and a quarter million
dollars, and that is "all the traffic will
bear"-more than the taxpayers should
be made to bear.
The city is entering upon a period
Of greater industrial and commercial
prosperity than it has ever before en-
joyed. Every effort should be put forth
to encourage the establishment of new
industries; new business Of all kinds.
"Such encouragement cannot be ex-
tended by making taxes needlessly
high, rent charges and general living
expenses greater"
Criticism Lacks Reason.
Any one who knows anything about
this proposition, and who really haz
the interest of the city at heart, must
thoroughly sympathize. with the News
Tribune in its vain attempt to induce
the people to believe that they should
not have at least the power to issue
bonds for the purpose of protecting
themselves against possible extortion.
One would be led to believe by the
editorial quoted above that the council
was rushing into this question blindly.
This is far from the truth. At this
time all that is wanted is the RIGHT
to issue bonds. Before bonds could be
finally sold it would first be necessary
for the council to pass an ordinance
providing for their issuance. Then a
vote Of the people must be secured.
With these provisions surrounding a
bond issue it can be seen that it would
require considerable time and effort to
float bonds.
Why Bond. arc Needed.
No reasonable person can deny that
the people should have the right to
issue bonds. They need that right to
prevent them from being subject to ex-
tortion from possible greedy corpora
lions. To say that the right would be
abused If it were enjoyed by the peo-
pie, Is to state that the people are not
capable of managing their own affairs.
But the people have Judgment. Five
years ago they voted to issue bonds to
Init ola <rio lob
private company offered to light our
streets at such a reasonably low price
that the matter of building a. plant was
waived, and a contract was made with
the company. If the city did not have
the right to build thte plant at the
time, it is safe to say that the cost of
street lighting would not be so low as
it is to-day.
Contract Soon Expires.
In another year the street lighting
contract will expire. Without the right
to build plant the city will have no
other alternative than to make a con-
tract with a private company. This
being true, is there not danger in be-
ing compelled to pay an exorbita1t
price for street lighting?
The Labor World predicted before
the late election that the opposition to
the water bond issue was largely due
to the fact that the friends of private
lighting corporations desired to create
an unfriendly feeling for bond issues,
SO that the Legislature would not be
induced to pass an enabling act which
would give the City Of Duluth the
right to defend itself against extortion.
The News Tribune, in spite of all the
proof that is furnished from the Water
and Light department. holds that even
electric lighting bonds would increase
the tax rate.
Tax Rate Not to be Increased.
Has the ownership of the water and
light plant increased the tax rate more
than the one-half mill used for a sink
ing fund? The water and light plant
is taking care of its own interest. 4
municipal electric lighting plant would
do likewise But this is foreign to the
question, which is, not the matter of