The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1907-12-04
HAVE INVESTIGATION.

when it made a new proposition with
regard TO buying the Municipal Light
ing plant. The way the Light, Heat
nnd Power company has prepared its
new proposition, places the city in a
position where it must pay some atten-
ton to the offer. The new proposition
contains an offer that means a great
deal in determining just where the
city really stands with regard TO the
money it has sunk in the Municipal
plant This part of the proposition
reads:
"Therefore we request and petition
that for the purpose of establishing a
basis for further negotiations. and ar
irving at an appraisement or true val
he of the plant, and for the further
purpose of accurate knowledge on the
part of the 'city's officers. firm Of
competent chartered accountants and
electric engineers. trained in municipal
investigation, and satisfactory to both
the city and ourselves. be retained by
the city to make such examination and
appraisal. and to report at the earliest
opportunity.
The expenses incident to the same
this company agrees shall be added to
any purchase price hereafter establish
ed, should we purchase. And should
e. sale not be cOnsumated, we agree -
reimburse the city to the amount of
such expense"
BY this part of the proposition then,
the Light, Heat and Power company
agrees that if the city will order a
proper and thorough examination made
of the Municipal plant, it will bear the
expense whether the city sells it's plant
or not. Nothing could be fairer 10
Richmond than this, as it means we
will all know just how the Municipal
plant stands, something that we do not
now know. and something that no for
mer investigation has shown fully.
Aside from this comes consideration
of the sale of the city plant. From a
business standpoint in dollars and
cents to the city of Richmond, the mu-
nicipal plant to date is not success
Conditions are not now and never have
been favorable for the success of the
municipal plant from a business stand
Point. The city plant has always
had the strongest kind of competition
from the Light, Heat and Power COM
pany and competition, as everyone
knows, tends to bring about very low
prices or rates. In this case the Mu-
nicipal plant has been forced to make
rates that are very low. considering
the rates paid in other cities This, of
course. has been to the great benefit of
every consumer of electricity in the
city and was what the Municipal plant
aimed to do. Richmond to date has
sunk over 100000 in its Municipal
plant. and the taxpayers have had Il
foot the bill. For the economic run.
ming of either the Municipal plant OF
che Light Heat and Power company
one or the other plants must be alb
sorbed. The Light. Heat and Power
company claims that if the city plant
IS sold to it, it will be able to save
St in increasing it's investment to take
over the plant. No one doubts that
Either plant under one ownership
would need but one set of operatives
and all the expense of duplication thai
Is now entailed would be saved. An;
this saving would amount to seyera
thousands of dollars every year. L
the city were to buy out the Light
Heat and Power company, it woul;
make the additional money by tn.
same saving that the former aims <
make If it purchases the city plaut
Richmond, however. is in no position
to take on additional Indebtedness AM
can not afford to make the Light, Hea
end Power company any proposition
towards taking over its plant. There
fore, there is but one thing left to d
and that is to go to the bottom of tn
matter with the Light, Heat and Powe
company and secure, if possible a sat
isfactory arrangement. whereby tn
city will sell its plant and receive bacl
every cent it has put into it and at tn
same time allow the sale to take plac
under conditions that will absolutei
protect the electrical cosumers agains
any raise above the present rates. |
any saving in operating expense is =.
be made let it be made under preseu
rates. And, as we understand it. thi
sort of a proposition is acceptable I
the Light, Heat and Power company.
But by all means let us have the e,
animation of the Municipal plant E,
cry one of us. as taxpayers. would Iik
10 know on the word Of an expert All