The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-02-18
THE NEWHoUsE OFFER.

nj r. SAMUEL NEwHOUSE, who is
IVA amply qualified TO discuss the
question. and who has the means to
back any undertaking he proposes, has
an interesting open letter 10 the city
council in this issue Of The Herald. He
suggests that the extension of the
franchise which the Utah Light & Rail-
way company is asking be investigated;
that the rate charged for service else
where be compared with rates here,
and in conclusion he offers to organize
p company which will furnish consum-
ers a frst-class service at from % to
80 per cent less than the rates charged
By the present company. All he asks
in return is a franchise on reasonable
terms. safeguarding both the company
and the consumer.
1t is Unnecessary to say that Mr..
Newhouse is a conservative business
man, successful in all his enterprises,
and. therefore, accustomed to weigh his
words and count the probability OF div
idends on such an investment as he
is willing to make He offers first
class service which is not given now,
and he offers a reduction OF from 25 to
30 per cent on the cost of light and
power to consumers. What the total
saving TO the people of Salt Lake
would total can only be surmised, but
4 it would unquestionably run up into
/ six figures annually.
If there were no other reason for re-
fusing to extend the company's fran
chise for an additional fifty years. Civ
& ing il a term of eighty-two years TO
Il run, Mr. Newhouse's offer alone would
be sufficient II the people Of Salt
Lake have any franchise privileges to
grant. they would much better grant
them for the purpose of securing COM
4 petition and good service than for the
purpose of riveting on the municipality
a monopoly which has shown little dis
Il position to either give first-cIass serv-
iee ss-fsir. rates or to appreciate the
81 complacency of a people who have toll
S erated the conditions imposed by the
company.
* It is entirely proper, as Mr.. New
s house says, that the owners of the
Light & Railway company should be
protected in their legitimate invest
s Inents. but il is also right and proper
that the company should protect the
rights of the consumers by giving them
good service at as good rates as are
Furnished elsewhere. There is no equi-
ty, no justice. in the proposal to in
Grease the cost Of lighting, and it would
be criminal disregard of the people :
Interests to extend a franchise which
ioes not expire for thirty-two years,
with no return except land and water
lights which the company values at
k10O. O00 but which could have been
{ bought sixty days ago for much less in
Mash.
The fact is that the lighting company
5 compelling the consumers of Salt
Lake to pay interest on an excessive
capitalization, and already some of its
r plant is badly in need OF modernization
ut a considerable cost; but that is no
reason why the consumers should be
nulcted or why the stockholders OF the
company should not furni$I. The means
10 bring its service up TO an efficient
standard.
Taking into consideration all the cir
.umstances, including the offer from
Afr. Newhouse, the council can find nc
Reason which the public would accept
rs Justification for an extension OF the
rompany's franchise or for any addi-
YtionaI increase in its charges for serv-
ice.