Decorah public opinion. (Decorah, Winneshiek County [Iowa]) 1895-1928, 1905-08-09
THE ELECTRIC FRANCHISE.
Letter From the Manager of the Company
Explaining Some Unsettled Question.

We believe that nearly every point
concerning the new electric light
franchise which is being asked for,
has been covered by the editors of the
various Newspapers of Decorah in re-
cent articles, but some have asked
me why we need a twenty-five year
franchise, when we already have a
twelve year franchise. The answer is
simply this. Certain capitalists have
agreed to furnish the necessary money
to construct the proposed dam and
water-power plant, provided, that
they have the assurance that the COM
pany will have permission to do busi-
ness for term of years sufficient to
warrant the investment. and they will
not do this unless they have twenty
five year franchise.
After all, we are not asking for any
thing unreasonable when one considers
that to engage in any other form of
manufacturing or mercantile business
in city, one is not required to get
permission from the voters. but in our
case we are, because of stringing wires
and setting poles upon public property.
We are prepared and will be pleased
at any time to prove to the entire
satisfaction of anyone who cares to
investigate, that the money to carry
out this great enterprise will be
forthcoming Immediately after the
granting of the requests of this COM
pany. 1t is not an easy matter to get
money from outside invested in De-
corah or any other small city. Never
theless, we want it definitely under
stood that this is no wildcat scheme I;
we are prepared to do as we say. We
have spent much of our time and con-
siderable money for several years. ar
ranging and testing all details of tins
project. both alone and with expert
engineers. and in view Of the fact that
we are paying all the expenses of this
special election. and are asking moth
ing that costs anyone a cent except
ourselves. we feel justified in making
this request for an extension of time.
When Burtis & Howard first secured
a franchise in pecorahs4 the competi-
tion was severe, and the price at
which the street lighting was taken
was very low. The rate for CONNER
cial use was set by competition at
that time. Burtis & Howard secured
the franchise organized company /:
secured outside capital, and built the
plant without asking for local aid.
For some time the plant was run
only until IL p. IN. But the public
soon called for all night service. The
patronage was not sufficient to war
rant this as it was uphill work to
make the business pay from the start.
end to make it possible TO give all
night service and all day service for
power. the company asked to do the
city pumping. To secure this they
bid very low in order to make a SUBJ
stantial saving to the city over the
then existing way of doing the pump
ing. The company also made great
reduction in the rate for arc street
lights to the city,. The price up to
that time had been SO cents per hour.
The price then made, and now exist
ing. was 2.25 cents per hour for 2,00C
candle power arc lamps. This is low
or than the average price paid by "a
cities in the state of Iowa. the average
price in the state being 3.8 cents pei
hour.
The business under the new schedule.
with continual service. was again dis
appointing. due to the fact that very
few customers for light were thereby
added. and the power customers are
of necessity very few, due to the size
and business character Of the town.
On top of this discouragement. coal
went mp by leaps and bounds. until
the expense of operating by coal be.
came almost prohibitive. 1t is fact
that the reduction in the price above
mentioned and the increase in the cost
of coal and supplies obliged the light
ing company to give large part of
the service to the city for arc street
lighting and pumping at actual cost,
at and at times even at loss.
Sufficient has been said to show that
the electric lighting business cannot
be made to nay and give an up-to-date
service while they are obliged to
operate with coal. 1t is fact that
the service given in Decorah is un-
usual and superior to that given in
towns of equal size. The saving in
cost OF operation of the plant, brought
about by this water power improve.
ment, will allow us to still further
improve the service, making an abso-
lutely continuous service. at reduced
cost to the consumer, so that electri.
city will be used in hundreds of
places and for many uses not now pos
sible.
1t is unnecessary for us to mention
the advantage to Decorah of large