The Mobridge news. [volume] (Mobridge, Walworth Co., S.D.) 190?-1917, 1912-04-12
NEGOTIATIONS Under Way to Purchase
Electric Light Plant at
Miles City.
Plan to Develop Power Plant at Buf.
falO Rapids, Ten Miles
From the City.
Termination of Plans Will Require
an Outlay of Nearly Half
Million Dollars.

Brief mention was made in the
last issue of The News of the re-
turn of B. S. Hill, G. G.. Cragin
and Nj. T.. BroOkman from Miles
City, where they had been in con-
ference with the city council and
chamber of commerce OF that city
regarding the purchasing of the
electric light plant from the city
and development of power plant
at Buffalo Rapids, contingent upon
the city granting to them twenty
five year franchise to light the
city.
On Tuesday afternoon Of last
week these gentlemen submitted a
proposition to the city council of
Miles City, offering to purchase
the electric light plant and to fur
nish light for half price now being
paid under municipal ownership.
The following is a part of the
proposition made by Messrs. Hill,
Cragin and Brookman:
Public service corporations
when possessed of unlimited power,
very frequently abuse the same
and are, therefore, justly under
public disfavor. Under proper
limitations and regulations, how
ever, they are admitted by the pub
lie to possess many points of ad-
vantage. Of these among the
most important is the principle of
economy. 1t has been established
beyond a question that cost Of pro-
duction decreases under private
ownership and this fact is SO gen.
orally known that it requires no
discussion. Of prime Importance
also is the field of opportunity for
development, due to individual and
unrestricted enterprise.
The above general principle of
economy when applied to munich
pal versus private ownership of
public service utilities is illustrated
by the proposal of the Lower Yel-
lowstone Power company, and OBJ
viously there is great economy
therein. Now, assuming that the
operations Of the electric power
utility be divided into two separate
enterprises, namely the production
and the distribution thereof, the
following conditions occur to in
crease the cost to the consumer:
Maintenance of two separate
properties; maintainauce of two
Office forces, and management;
maintenance of two bond issues
and interest; maintainance of two
sinking funds.
Under this condition it is ap-
parent that economy does not ex-
ist. Now it is also generally con-
ceded that there are certain disad-
vantages in municipal ownership.
Among these, first, is the lack of
economy due to the necessary cum
bersome and involved methods of
management, and the difficulties
arising from the changes of admin
istratiOD. However, assuming that
each separate enterprise might be
conducted at a profit to the separ-
ate operators, it is evident that
economy does not exist, because
there are now two profits taken
from the consumer, and each pro-
fit will be sufficiently great to
represent a fair return on each in
vestment. Further, it is obvious
that each separate investment will
be a proportiOnally larger percent
age of the total, and that, by at
least this amount must strict econ
omy be exceeded.
AT times there has been hesi-
fancy in granting franchises for