The Lake County times. [volume] (Hammond, Ind.) 1906-1933, 1910-09-30

figure with us to serve us with this
power.
MI William D. Ray, manager of the
Northern Indiana Gas & Electric COM
pany and myself, have had at least !
twenty interviews with the officials of |
the South Shore. The question of rates |
between the South Shore and the North !
ern Indiana were practically agreed |
upon, SO that there really has been no |
serious difficulty between us in getting |
together on the rate question, but the |
question of reliability of service has
been the main question at issue. After
making a thorough investigation of
their power equipment at Michigan
City, and the transmission of power
from thirty miles away TO Hammond,
East Chicago and Indiana Harbor dis
tricts, the conditions caused at once
to hesitate about making a contract
with the South Shore people. The next
thing that caused to hesitate about
making a contract with the South
Shore people was the unbusiness like
manner in which our negotiations with
them were carried on. i seems impos-
sible to find out from them just what
| they could do, there seemed to be so
many different heads to the concern to
| be consulted, that we found the making
of this contract with them impossible
| The first thing that we gave the
South Shore people to understand was
that we absolutely must have the best
service for our customers. We told
them that this absolutely must come
before the question of rates. We said
further that their equipment at Mich
| igan City must be such that we would
have our own dynamos to make our
n 20 ha
street railroad, and that we must have
our own wires running from Michigan
City through the entire territory so
that they would not conflict in any
way with the railroad current. This
they declined to do for some time.
Our Mr. Ray at Hammond, and the
lScuth Shore engineer Mr. Davis. work.
ed on this contract for five months, try
ing to get it in such shape that we
would be protected against dangers of
Ishut downs, poor current or penalties
etc, and finally after five months labor
between these two gentlemen a con-
tract was prepared and practically
agreed upon between the Northern In
diana and South Shore railroad.
Il received wires from an officer of
the Cleveland Trust company, in Cleve-
Hand, and also officer of the South
Shore railroad, asking me to come to
Chicago and meet him for the purpose
of closing the contract. I came to Chi
cago to meet these gentlemen-went
over the contract and absolutely ac-
cepted 1t provided that they would
satisfy rs to their reliability to carry
this contract out for the term of ten
years if it was given. and their ability
: 10 purchase the necessary machinery
which it required. The point which ]
felt was the most essential to making
the contract was the financial RELIABLE
fly of the company. ! said to them that
) we were the people who were actually
distributing the electricity to our Gus
: toners, and that we could not enter into
a contract with any concern unless
they could prove TO us their financial
reliability to carry out such contract
because any complaint that would be
a made against the poor service, if such
should occur. would come to us-not tc
the street railway people, and that we
did not want to be In a position to have
2 our hands tied so that we would be
unable to remedy the trouble but we
wanted to be able to control the stu.
alton so that If we did have poor serv.
ice, that we would be able to remedy
g lit ourselves without depending on un
!. lpianation,-the official of the CIevelan,
= Trust company and of the South Shor
/ railroad informed me that he woult
Il have to go to Cleveland and consul
with the rest of the directors of TIL
company before he could go into TIL
contract further, and right there /
II where the contract has stuck eve
r since.
r. In June of this year, I myself, pur
l. chased all the stock of the Northern In
a diana Gas & Electric company which
did not own. After purchasing all thi
= stock made merger Of the North
ern Indiana Gas g. Electric compan
with the South Bend and Mishawak
n Gas company in this way charging tn
field of the Northern Indiana compan.
F" and the gentlemen that were the own
l. ers of the South Bend & Mishawak
Id Gas company then acquired their ir
n terests In the Northern Indiana CON
pany. AS soon as this merger we
- made. we sent our engineers out owe
the entire territory TO see what wei
the best methods of operating to be FOL
n mulated
CT Our engineers recommend that "
purchase land IN East Chicago, ere
= a large power house there-East Oh
: lN~7' DNAH6 PtNNei'sh4A lfN 'ciitSt u u
Id district that we serve between Gar
Is and the state line west. The S0ut
:, Shore people became familiar with II
- fact that we were going to build tn
50 large power house. They immediate
n went to work to try to secure son
tie power contracts from factories alor
their line. They also went to the tow
Of Chesterton east, which ser
ing with electricity and attempted
Mt secure a franchise there. AS soon as
or. heard Of this. I asked our secretary
go to Cleveland, and have intervie
=. with the gentlemen who at Il
- head of the South Shore Railroad cor
ny pany to ascertain what they meant
er Sc curing power contracts in our tie
is ritory. They informed our secreta
= that they proposed to go into the sa
of power from their Michigan CT