The Topeka state journal., 1905-05-24
ONLY ONE ROUND.
Edison Franchise Fight Is Form
ally Opened.
Merely the Preliminary Skir-
mish Takes Place.
ACTION is POSTPONED.
Another Turn to Be Taken Fri
day Night.
Council Will Investigate Finan-
ces of Company.
ACTION is POSTPONED.

An investigation into the accounts
and business relations covering the
past five years of the Edison Electric
Illuminating company will be conducted
by a council committee together with
the aid of an expert accountant in or
der to determine If it can give the pro-
per rate or rates which should be en-
bodied in a franchise and yet permit
the company to make 10 per cent net
earnings upon the capital stock as pro-
vided for in the statutes of the state.
The Edison Electric Illuminating
company was represented by Joab Null
Vane, T. T. Doran, attorney, and Sup
erintendent Maunsen while the citizens
were represented by David Overmyer.
The resolution calling for the investi-
CATION was introduced by Councilman
Green Immediately upon the cOnsidera-
ton Of the franchise by the council last
evening. In introducing his resolution
Mr.. Green said: The question before
this council is. what rates are proper.
What rates can be adopted and yet
permit the company to pay a liberal
percentage upon its capital invested,
not an eXtOrtionate rate but in accord
ance with that called for in the law.
take it that there are just two ways
for the council to get at this question
OF rates. one is to hire an expert e1ec-
trician and have him report exhaustive
ly to the city council after making a
thorough examination Of the plant and
the other, more simpler way, is for the
council 10 appoint a committee from
the council members, together with an
expert accountant and go in and exam
inc the cOmpany's books, its properties,
its investments, its capital stock and
its dividends and then arrive at what
the way of rates"
Mr. MuIvane Explains
Following the reading of the resolu-
ton AIr. Mulvane secured the permis-
sion of the council to present the wish
es and the situation of the Edison com
pany. He spoke of the contemplated ex-
tension of the plant.
Councilman Ryder said: ''Wil you
put up a cash forfeiture, Mr.. MulVane,
to make the 100000 extension if the
franchise, fair to you, is passed. VIII
you bind yourself in case this franchise
is passed to put up a reasonable cash
forfeit that the Improvements you speak
of VIII take place within a given time.
Mr.. Mulvane replied: Il refuse to do
that I viii, hOWever,,ep put up a cash
forfeit that the plant viii be. enlarged to
meet the demands as they present them
selves
Councilman Hughes secured the floor
and said: L understand thatzthiss Edi-
son company has issued $780, 0eQ in cap
ital stock and then has increased it fur
ther to $500, 600 The law provides that
anything above the 10 per cent earnings
of the plant upon the capital stock shall
be paid to the city but they evaGe that
law by paying so per cent dividends on
the capital and then issue stock divi-
dends of 40 per cent. The council ought
to go in and investigate fully their
books and find out what they are doing
I'm in favor of the resolution"
Mr.. Joab Mulvane replied to the coun-
Gilman from the Sixth ward: I am
not going to enter into any financial dis
cussiOn with my friend, Colonel Hughes
tonight. I am not going to be switched
off by any bOmbastic utterances on his
part. I think, however, that you will
make a mistake if you pass this resolu-
ton. You require US to make a detailed
statement of all our transactions and
accounts within days. That is entire
ly impossible. There is only one man
who has that knowledge and thOseitems
and he is not in the city. Mr.. Wilder
is at present in Arizona and he posses
ses all of that information. 1t would be
impossible for US therefore to produce
what you wish in the time that you ask.
I think that you would not be able to
advance one step further if you do pass
this resolution. You are simply delay
ing matters"
Councilman Swendson supported
the idea to table the resolution and
said in support of this view: Gen
tlemen, I am against this resolution.
We have been delaying from time to
time and I think that if we do what
this resolution contemplates we will
be in the position that we are tonight
We will not be one step further to-
wards solving this problem. We
should act on this franchise. I move
to refer this resolution to a committee
OF the whole
On putting this to a vote. Council
men Ryder Simms, Green, Horn,
Gr1ley, Hughes. Nipps and Sinner
voted no while Councilmen Howe,
Swendson and Holiday voted aye. The
motion failed to carry. Then the mo-
ton to adopt the resolution was put
and carried by Z to 4. Ayes, Ryder,
Griley. Green, Horn, Hughes, Nipps
and Sinner. No, Holiday, Howe,
Swendson and Simms.
The resolution was slightly amend
ed by Councilman Griley making it
possible to engage an expert account
ant or not as the council may de-
termine later
Councilman Simms. whos has all
along given himself out in his inter-
amending the franchise, explained his
vote on the resolution last night by
saying that he was in favor of getting
down upon the matter of the fran
chise itself and fighting out the ques-
ton of rates in the body of the coun-
ell. He said that he did not believe
that an investigation of the books or
accounts would result in any material
information
Councilman Hughes reiterated his
charge that the Edison company has
evaded the law by paying a stock
dividend of 40 per cent. ''I have asked
Mr. Mulvane to deny and he has not
denied it." said he.
at do deny it" retorted Mr.. Null
vane. ''But as said before I do not
propose to enter into any financial
argument tonight"
Take Up Franchise
The council decided after some lit
tie argument that it would resolve
itself into a committee of the whole to
| discuss the sections of the franchise.
| David Overmyer. representing the citi-
zens opposing the granting of the pro-
/ posed franchise, then asked for per
mission to present a memorial signed
/ by the committee from the citizens
voicing their wishes with regard to
/ terms which should be embodied in a
] franchise If granted- The mem orial