The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1910-08-08
Accepts Suggestion OF N. J.
O'Brien for Saving .$22 per
Day to Pay Off the Bonds
II City Plant.
SUPT. JOHNSON WANTS
THE PLANT ENLARGED
He Says Before the New Pro-
ject Is Placed in Effect, a
New Unit, Badly Needed,
Should Be Built.

The proposition for creating a sink.
1ns fund to pay for the Municipal
Light plant was presented at the may
or's cabinet meeting this morning, by
NJ. J, O'Brien. president Of the sinking
fund commission. In general the prop
Osition was similar to that outlined In
the Palladium several weeks ago. All
members OF the cabinet and other city
ofYicials say the plan Is fine one and
Mayor Zimmerman promised to do all
that ID possible to secure It's passage In
council
approximately x2o day for sixteen
years and six months beginning Octo
Der I. 1910. will pay the bonded In.
debtedness OF $4,000. which falls due
March 1. 1927. as the money could be
put out at compound interest In n To-
cal bank. This money would be known
ms the light plant sinking fund and
could be used for no other purpose
than TO pay the bonds OF the plant.
To Prevent gxtrsvasanes.
Mr.. OBrieu, In presenting the mat.
Ter said that Il 10 . plan to guard
against the extravagance OF any fu-
ture administration spending money
from the regular municipal light plant
fund for unnecessary repairs on the
plant.
The regular sinking fund at present
contains $15.738.O7. At any time
council may pass an ordinance to
spend any Or all Of this money for
improvements on the plant, 90 II IL In
NO way protected from council raids"
in the future.
II was stated a Mayor Zimmerman
was really the father Of the plant"
he should II possible. form a plan OF
paying for II. The interest on the pro-
posed fund would be compounded at
the rate Of 3 per cent.
Nimrod H. Johnson. superintendent
OF the light plant, although favoring
the project. says It should be post
poned until the new unit is installed
at the plant. This unit will mean the
construction Of new building, boilers
and other equipment and an expendit.
ure OF over $4,000. Mr.. Johnson
thinks the plant could not make the
Improvement, which is absolutely ne
cessary and at the same time pay So
per day to the light plant sinking
fund. Other city ofhcials. however,
favor temporary loans to construct the
new unit.
New Unit 10 Needed.
THE new unit" declared Mr.. John.
aon, "is an absolute necessity. as we
are carrying almost the fun load Ca
pacity OF the plant at present. The
real capacity is 1850 kilowatts. but
we are now carrying over 1.450. In a
pinch 1900 can be carried. This will
be the case this winter for. although
the Hoosicr Drill has just installed its
own plant. we have other big orders
60 fill."
Mr.. johnson states II the city would
pay what II owes the plant for light
and power and the sinking fund Is not
created the new unit could be INSTALL
ed next year and paid for within n
year Of Its completion without making
any loans at ALL He said when nec-
essary to make the Improvement the
city would probably issue bonds
against the plant when II Is already
indebted to the plant THAT Is not
fair" he said.
The plant Ia securing new custom.
ers every day, and now particularly
because the natural gas has failed
and many small factories are putting
In electric power Also because a
large number Of big factories are in
stalling electric motors instead OF
steam power.