The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1905-12-08
FAVOR THE FRANCHISE
A Citizen Believes in Granting Eec-
trio Light Franchise Hedged With
Certain Restrictions.

Certain Restrictions.

a theory, relative to the proposed
electric light franchise. / understand
from the petition that has been clr-
leulated, and the two articles recent
1y published in The Republican, that
it is proposed that the city council
do not grant an electric light ran
chise but that an electric light plant
be installed and operated at public
expense.
/ am opposed to this latter scheme.
1 do not believe the tax payers OF the
city, as a whole, favor it. 1t would
require an expense ON the part OF
the city. of not less than $780, 600 to
construct such a plant. and with no
adequate way Of raising the money.
I understand that the city has all
ready reached the lawful limit of d
tonded Indebtedness. 4
Butsuppose the city should under
take the construction and operation
of such d plant, lit would hardly be
the proper thing to do. Would the
the tax payers of the city be salts
fed?
A city of 5000 people with an up to
date electric light plant, owned and
operated by the city, I..venture upon
investigation of any Of its residence
streets, that not more than n in
four OF the inhabitants, from a house
to house canvas would be found
using electric lights. For the sake
of the argument let US suppose that
one-half of the resident taxpayers use
the lights only. The other half look
upon its use In private houses as a
domestic luxury. City ownership of
such a plant means that not less than
one-half of its taxpayers are taxed to
erect and maintain the plant for the
benefit of the other half. Hence,
half the taxpayers get nothing in
return, more than could be obtained
by private ownership.
It is fair to presume that private
lowners Of an electric light plant in
this city will have invested in the
enterprise not less than an amount it
would cost the city TO originally con-
Istruct it,-say $50, 0OO,-that means
annual taxes paid into the city treas
ury that would not be paid by
city ownership. The more invested
by private parties the more taxes the
lcity receives tl,erefrom each year.
There is no use Of being misled BY
talk OF HFrenzied FINANCE" OF
AsWatered Stock Those are alb.
stract questions, and sounds very
much like Frenzied Politics, Law
sonized. This partisan political pro-
position is not not necessarily invol-
we'd in the subject Of the granting OF
the franchise In question. The cues
tion is. shall the city exact from all
her taxpayers tribute necessary to
build and maintain an electric light
plant, more than one-half of whom
will never receive any direct bene.
LIT stherefrom for dometsic uses fol
such q purpose they will pay taxes tc
Ienable the other half to enjoy the
luxury o! electric lights.
! / understand the city council does
not propose to grant an unlimited
and unrestricted franchise. The
council propose to carefully look after
the..best interests Of the city, and all
her taxpayers. The council is fully
capable Of granting a franchise so the
city and her taxpayers one and all get
the very best future results during
the life of the franchise. Should the
council undertake now or hereafter
to construct and operate an eleci rio
llipht plant at an original oml4A OF
at least $4,000 besides the expense
OF operating it, / believe the tax
payers will he justly indignant.
Let the city grant the franchise,
which means S25, 900 immediately In.
vested in improvements. Make the
company execute proper contracts,
which can lie made as II condition to
the granting Of the franchise, in
other words without the contracts,
lno franchise. These contracts car
firmly bind and obligate the company
lduring the existence of the franchise
to furnish the city for all public uses
lgoCd and sufficient light at not ex.
ceeding an agreed price. ard which
may not exceed what it would cos,
Lie the city owned the plant. Fix
also by firm and binding contract
that private consumers shall pay not
Exceeding a definite price. (Whicl,
lean be just as low as if the city own.
ed the plant.) Then the city and its
Inhabitants have all that can be pos.
sibly hoped from city ownership
Then the city taxes will he increased
to the amount Of the value OF the
plant; one-half the city taxpayers