The Lake County times. [volume] (Hammond, Ind.) 1906-1933, 1907-02-12
Council Accepts Report of
Special Committee Re
garding Compromise.
MUST Be REFERENDUM
City to Realize $4,000 From Sale
Of Water and Light Plants and
Citizens Favor Measure.

The East Chicago city council held
its regular bi-monthly meeting at the
city hail last night and among other
things voted to accept the report of the
special committee which was composed
Of the mayor the city attorney. a rep
/ resentative citizen from each ward and
the members of the city council, which
/ had been selected to confer with the
/ agent of the bondholders Of the water
and light company for the purpose of
/ effecting q compromise of their differ
ences.
The special committee with the ex-
eeption Of Andrew Mickey. who rep
resented the first ward, was unami-
mously in favor Of the compromise
which had been effected and all Of its
members seem TO think that the city
has secured a fair deal from the bond
holders
The citizens in general are satisfied
and especially pleased with that fea-
ture Of the contract which requires that
the ordinance shall be published for
thirty days, after which a referendum
vote must be taken before the council
will be permitted to go ahead and grant
the franchise.
Citizens Act With Eyes Open.
Every citizen will have the oppor-
tunity to read the franchise over and
will then have the privilege of voting
for or against the measure before the
council will attempt to pass it. These
safeguards make it impossible for the
, measure to go through except with the
open-eyed approval of the people who,
alone win be to blame if the measure
1 fall short of what axDacfqd
There seems to be a general feeling
of relief at the prospect that the matter
will be settled and the citizens
realizing as they do that the city
is in no condition to finance a munci-
pally owned water and light plant
think that this is the best solution OF
the problem.
The net returns to the city for its
equity in the plant will be about s116,-
000, of which $4,000 is cash, $4,000
is cash allowance for interest upon the
city's equity, $4,000 in the bondhold-
ers' assumption of the water aid bonds
$500 for the electric station, which is
to be converted into a fire station, ant
rebates upon hydrant and arc rental:
amounting to s97,500.
VIII Use Cash for City Hall.
Of the $4,000 cash that is to be re
= ceived the entire amount will probably
e be used by the city for the purpose o
) building a new city hall and the $97 so
in rebates are to be deducted from tn
amount the city is to pay for ar
lights and hydrant water, and will b
extended over a period of twenty years
. or, the life of the proposed franchise
Another feature of the franchis
that meets the approval of the peopl
! fs "a w iq1 ma kos ant
upon the city to require revision o
the rates at the end of the first tie
y years. This makes the franchise prac
tically Of only ten years duration.
Some time ago, Mr. Guy, of the fir
y Of Jones, Caeser, Wilmont, Dickenso
company. audited the books of the cit
and reported that the citys homes
equity in the plant was about $1,000
10 and under the agreement that has jus
been made the city is to realize SIG
GOO
OF course, it must be remembers
that the company is getting a me-
franchise in addition to the city
equity in the plant for the $4,000
% but is the $4,000 merely purchase
the citys equity in the plant it is
question whether the franchise coul
be sold for a consideration. Munic
re palfties haven't a habit of selling frar
? chises that way even though the priv
/ leges involved may be of great valu
Not Available At Once.
- Another thing that should be remen
bered is the fact that the payment
the bulk Of the $116.O0 which the eli
At is to receive in return for it's equit
i in the plant is in the form of rebat,
/ and is to be extended over a period
II twenty years instead of being avaflat
I'd at once.
a But the city receives free water f,
"a all public purposes and electric ligh
a for all public buildings, and conside
ny ing the fact that the city is unable
ne finance a new plant of it's own it is Il
IN consensus of opinion in East Chicas
1e and Indiana Harbor that the compr
IL mise was at least fair to the city.
he -- ----------
ip British Convict Regiments.
At the beginning of the eighteen1