The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1908-05-12
Glenn MarSton Says That Peo-
pie Who Do Not Use EleC-
triClty Are Taxed to Keep
Up the Plant.
BUSINESS MEN INDULGE
IN LITTLE CONFAB.
Merits OF the Local Concern
Are Discussed Pro and Con
And SChlIIlnger Gets Slight
Iy RuffIed.

" huttled.
One of the most animated discus
alons that has marhcG a public meet
InG of the Commercial club was that
Of last evening. which followed the ad-
dress of Glenn Marston. of New York,
who spoke on the subject Public Ser
vice Commissions in the United
States" Municipal ownership Of
public utilities furnished the theme OF
The discussion. which WAS INDUCED in
by number of the prominent business
men Of the city. the MAYOR and a MEM
Der Of the board of public works. Mr..
Marston declared municipal ownership
mas proved a failure in the United
states. Champions of the local plant
andeavOred to convince him and local
opponents of the plant that the Rich
Houd investment has not been fail
ire. The argument pro and con ac-
r0mplished The purpose of the meet
.ng
There was a large number in the au-
hence who have adhered 10 the princi-
pies of municipal ownership in partic-
llar, as it applies TO the local light
pllnt. The majority claimed TO he
we'll acquainted with the affairs of the
concern. but when Mir Marston asked
now many of those present had read
he last report of the city controller in
regard to the plant only ten arose.
There were more than 1on business
men in attendance. If the proportion
If one-tcnth be extended to apply to
Ire entire city. the proportion will bs
found very small.
Property Owner Taxed.
One of the claims of unfalrness ad-
vocated by Mr.. Marston against munic-
ipal ownership was that in this city
property owner is taxed for the sup
port of the municipal plant, whether
he is user of electricity or not. This
makes non-user pay for something
hat only a portion of the whole uses,
and Of which he derives no benefit.
The speaker declared that municipal
ownership promotes anti prohibition
sentiment. He said that is true de-
spite the facetious statements of W. p.
O'Neal to the effect it was great sur
prise to him and in fact think
hats the limit" Mr.. MarstOn con-
tended that corporations levy a tax 10
support their municipal utilities. Pro
hibtiOn drives out the saloons. this
does away with the large revenue re-
ceived from saloon licenses and with
out the saloon tribute the amount OF
lax Is reduced. With the reduction of
,axcs comes the failure 10 support the
plant and it finally must 80 .
business.
Advocates Commission.
Mr. Marst0n advocated the estab-
Iishment of state commission. which
has control Of steam and electric rail
roads. water. gas and electric utilities.
He said this will solve the problem
better than municipal ownership or
municipal control Of privately owned
utilities.
Expensive Luxury.
In part. he said:
The causes leading to the agitation
has been poor service and high rates.
The first form of expression of desire
for public control was municipal own
ership. The general result Of mu-
nicipaI ownership has been failure to
produce what was expected and in al
most every case il has proved an ex-
persive luxury, The losses caused by
red tape in municipality owned utili-
lies is such as cuts into profits. The
majority Of published reports Of nu-
nicipal plants is very misleading. The
oreticaIIy. charges such a. govern 9th
er plants are not charged up. There
is loss in taxes. interest on bonds, de-
probation. waste. etc, which are not
included. If any OF you gentlemen
ever held the hot end Of A mortgage.
you know how the interest is some
thing more than a theoretical charge.
If YOU do not allow for depreciation
you may as well begin to issue new
bonds
Plant Should Pc Taxed.
As 10 the lost tax. There is no
more reason why a municipal plant
should not be taxed than a private
plant It would help the city. II oft
en- happens the bonds ocalIed in some
places the sinking fund are not charg-
ed against the plant but are paid out
Of the general fund If municipal
ownership is 50 advantageous. why are
no other lines Of business operated sx-
cept utilities:
Politics interfere.
Municipal plants usually are more
or less involved in politics. In case
municipal control of public utilities is
assumed the political parties will soon
be after the manager Of the plant
rrz-.s-,r4 - De- rr-s,~ao. =.