The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1908-05-24

because of the shortsighted policy OF
the administration in not taking the
people into its confidence, in regard TO
the real conditions that existed when
| it took charge and that still exist.
| Mr.. Witherby's proposal to buy the
city'G plant, however. has served seV-
eral good purposes. In the first place
il has brought forth the fact that the
majority of citizens Of Richmond do
not want to dispose of the plant. It
has also shown the incompetent man
agement to which the present admins
tration is subjecting the plant and
| the unique method of book keeping,
whereby a great deal of money is be-
ing made on paper and, unfortunately,
| is never gotten off the paper 10 the
city's deposit in bank. Among other
things, Mr.. Witherby's confession that
the Light. Heat & Power company is
not making money from the electrical
end of its business is also of value.
| 1t bears out our oft repeated assertion
that an expensive economic wrong is
being committed in having two cleo
trio light plants in city of Rich
mond's size. Competition between
the two plants has been carried TO such
an extreme that neither the city nor
the Light, Heat & Power company can
make money at present rates and I'M
der present conditions. 1t is self evil
dent that this must continue as long
as both companies are in the field.
The franchise of the Light, Heat X
Power company does not expire for
over eleven years. For the sake OF
argument, say that during that period
instead of losing money the two COM
panies just break even. That their
receipts just equal their operating ex-
penses. Then during those eleven
years the stock holders of the corpora
ton owning the Light, Heat & Power
company, are going to lose their inter-
est on the money invested in the cleo
trical end Of the company, besides hav-
| ing to provide money with which to
meet depreciation and the interest on
the bonds of the company. 1t will be
| the same in the case Of the city. The
| taxpayers, however. will take the place
of stockholders and through these, de-
probation and interest on bonds will
| be met
At the beginning of Mr. Witherby's
present campaign to buy the city's
plant we asserted our belief that the
two plants should be merged, in the
interest of greater economy in man
agement and a corresponding saving to
Unless the two plants are merged not
only the stockholders of the Light,
Heat & Power company, but also the
tax payers of Richmond will have lost
| upwards of several hundred thousand
dollars by the time the private compa-
| ny's franchise expires. This great
waste of money is as senseless as it is
useless. Inasmuch as the citizens of
Richmond have definitely expressed
| their determination to hold on to their
! oh OIL &
company should offer to sell it's cleo
trical plant to the city at a reasonable
price. The private company is not
now making money from its electrical
plant nor will it make money as long
The same is true, of course, in regard
to the city'S plant, which can not
make money as long as it is subjected
to the competition of the Light, Heat
& Power company, and if the city
could obtain the private plant at fair
price it would be to its advantage to
do so. Furthermore, we can see no
7 JuSLlIldDle reason why Iue private
company should not sell to the city.
1t can look forward to nothing but a
period of eleven money losing years,
and at the expiration of that time it
will in all probability lose its franchise
and be forced out of business. That
the management of the private COM
pany sees this is plainly evidenced by
its endeavors to obtain possession of
the city's plant on several occasions
during the past few years. The pri-
vate plant. in offering to take over the
city's plant, declared that it would not
be necessary TO raise rates as money
could be made by the enormous saving
that would be brought about in oper-
ating expenses. AS this is undoubt-
eddy true the city would be distinctly
the gamer by absorbing the electrical
plant of the Light, Heat Il Power
| oo-,poDy &C would l;lyeu,iSa tho c+nol,