The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-12-30
ASHLAND HAS CRMPA|GN
IN THE DEAD Of WINTER
Private Company Will Compete
for Business if City Starts
Lighting Plant.
-.
Special to The Journal.

Ashland, Wis, Dec. 29.--Ashland is
in the midst of "a midwinter political
fight. A special election has been
called for Jan. Is to vote on the ques-
ton Of building; a. municipal electric
lighting plant for. which bonds must be
issued. |E-.:.....I ~
franchise Of the, present company, tho
Ashland Light, Power and Street Rail-
Of the municipal election two years ago.
Mayor Williams, who is much opposed
to it, was elected largely on the issue
of opposition to a further extension, I'M
less with material, reduction in rates.
The franchise expires next June, but
the fight was precipitated at session
of the city council two weeks ago,
when q special lighting committee
brought in a long report, on which it
had been at work. for about a year.
The committee has secured an option
on a large :trac ct ofsland on White river,
about eight miles south of Ashland,
and proposes that a dam Tbe built there,
the power trsnsmittedi te3Ashland, and
a plant built,gito be operated by the
Company Is Belligerent. O. !
The present company openly an
nounces that it will continue to 'op-
crate, no matter what the result Of the
special election. on Jan Is may be. At
OF: the right, to sell light to the city.
It will continue selling light to private
consumers, as competitor with the
municipal plant, in case the voters de-
eide to operate their, own plant. .
The Ashland Light, Power and Street
Railway company owns both the light
ing plant and the streetcar line. The
franchise of the latter will not expire
for many years yet. It is asserted that
the street railway does not pay ex-
pensees, and that the profits from the
lRl II plant have paid the bills of
vote for municipal Ownership Of the
lighting plant the effect upon the street
railway will be predetermined. wv
No one has given any figures regarl-
ing the plant except that its estimat-
ed cost will ! be >$5O,000.'' No figures
have as yet been produced as to pos
slble revenue or as to the limit of cost.
The opponents of municipal ownership
point to the fact that some time ago
the city decided to pave it's streets, but
after buying expensive machinery, in
Guiding a roller and crusher plant, was
unable to, do the work. One block was
paved by the city at such expense that
the roller has not been used since and
the paving was let to private con-
tractor A. q, = e: t ~: ~ ~. ,.
Bonded to Its Limit.
The proposed bonds are not Endorsed
by the city, as the city has no power
to issue or indorse more bonds, but
are to constitute a lien on the property
for which they pay. &@.t-
u. ~, e
ship wiwll not divulge the names of the
prospective bondholders, but say that
the men who build the plant will ac-
cept the bonds. The company contends
that a builder under such circum-
stances can install such equipment as
he may wish and charge any price he
may wish therefor, giving the city no
recourse in case charge is made. FOR
example, of $4,000 for generator
that the same builder would sell else
where for. $4,000. :, -. - :,
If this is the case. it is probable
that the actual value of the bonds will
be greatly inflated in. order to come
within the provisions that bonds can
not be sold below par
The company asks these questions.
= It is said that the interest for these
bonds is to be paid out Of the profits
from the plant. May we ask how any
one on knows there is going to be any
prohtsy How many contracts have
been obtained for commercial lighting
How much income can he guarantees
the voters that this plant will provide :
What experience have municipal Off
Gals had in running an electric plant 3
BY what magic can they make profit
when an old established company with
experienced Officers can not pay q div.
idendg What municipal plant furnishes
as good lights as is now furnished IN
Ashland at a profit after all cost
factors are considerable 4