The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1907-12-17
INVESTIGATION Of MUNICIPAL LIGHTING
PLANTS CONDITION IS FEARED BY BOARD
Of WORKS AND It MAKES FERVENT APPEAL
THIS FEAR is PLAINLY MANIFEST IN THE REPORT OF
THE BOARD AND COUNCIL COMMITTEE WHICH Bod
les WERE REQUESTED TO INVESTIGATE THE SENTI-
MENT TOWARD THE SALE OF THE PLANT.

tracts and Franchises, and of the
board of public works, TO whom was
referred the recent communication OF
the Light, Heat and Power company,
beg leave to submit the following re-
port:
The proposition is in brief as fol
lows: That said light company is in
terested in the success of the Munich
pal Light plant, both as d large tax
payer, and as its only competitor; that
said company desires to purchase said
losing money on the electrical side OF
it's business; that the city must be los
ing more money, as the latter cannot
conduct such a plant as Cheaply as
said company: that in case Of its pur-
chase of the city plant said company
would agree in a new franchise to
'safeguard' both the city and the pub
lie in rates to be charged in the flu
ture; and that the existence of two
plants, with the increased expense in
cident to a duplicate development, pre-
vents either plant from making enough
money to Justify such future extensions
as will be required by the city's natu-
raj growth. The light company then
makes the following proposition, ac-
companied by an offer to pay all eX-
penses incident thereto:
'Therefore, we request and petition
that for the purpose of establishing a
basis for future negotiations and arriv-
inc Mt uicar f,f+ nf
the plant and for the future purpose
of accurate knowledge on the part of
the city's officers. d firm of competent
chartered accountants and electric en-
gineers, trained in municipal investi-
CATION and satisfactory to both the
city and ourselves. be retained by the
city to make such examination and ap-
praisal, and to report at the earliest
opportunity" ~----~~.
When fairly analyzed. the above pro
posal says to the city: We are losing
money. You are losing money. We
know we are losing money. You
don't know you are losing money. We
want you to join with us in hiring
some experts to show you that you
are losing money. Then we want tc
buy your losing business and add it tC
our losing business. so that by doing
a large business We can make money
And as an inducement for you to dc
this. We agree to safeguard' you by
continuing the business at the same
lose money"
On its face this is a generous prOpo
/ sitiOn even for the second largest tax
payer" i'll the city to makc-provideC
the above statements are true. and the
premises are carried out in good faith
We do not doubt that the Light. Heat
and Power company is losing money
on the electrical side of its business
1t does not need the company's admis
sion to prove that. 1t has no stree
lighting income. and it takes CONNER
cial business at any old price.
But the city plant is not losing mon
ey; on the contrary. it is making ;
good profit on the investment to the
city as such, besides saving the citi
Zens many thousands of dollars ea"l
year as electric light and power con
sumers. whether they patronize tn,
city plant or its competitors. And II
our opinion it because the city plant i:
want TO buy it. They are not quite 81
philanthropic as to be hunting for
losing proposition. either in their ca
pacity as the second largest taxpay
ter'' or as the city's only competitor.
AS TO safeguarding the interests o
the city and the public as to rates in
new franchise. we may be permitted
to doubt the efficacy of such a promise
however we'll it looks on paper. Thi
committee has not forgotten a forme
promise made by the Light, Heat ant
Power company to safeguard" tn
city at the time a franchise 70
street lighting was given at $50 pc
light. with a provision therein that tn
city should have an option to purchas
the electrical plant of that company a
a value to be fixed by three disinter
ested appraisers. We remember how
after much appraisement which wa
satisfactory to the city. enough mem
berS OF the city council were CONTROL
ed" by the company to prevent tn
two-thirds vote necessary to issue tn
bonds to pay for the property. thu
defeating, instead of "safeg,,arding'
the city. We remember that it wa
this betrayal that so aroused our pee
pie that they voted by an overwhelu
ing majority t install municipal plan
four years before that contract expi,
ed. Our past experience with thi
company gives no assurance. to sa
the least, that the most solemn prom
ise of protection would be carried on
in good faith.
Referring TO the suggestion TO emplo
experts, the reasons given are. frs
to fix value on the city plant, with
view to buying it, and second. to ful
nish accurate knowledge" about tn
pant to the city officers who now hav
, it in charge" This appears to us t
be an invitation for the city to joi
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