The Virginia enterprise. [volume] (Virginia, St. Louis County, Minn.) 1893-19??, 1912-09-27
WOULD Make DIRECT LEVY
To Pay for the Light Plant. Such
is Seeming Sentiment of Mayor
and His Adherents as Expressed
at Meeting Last Evening.


bers of the board of tax levy, CON-
posed of the mayor, City Clerk Bick-
ford and President Boylan, a hunch
on how to get the money for the
prospective payment for the light
and water plant in case of the pur-
chase of same by the city, although
items Of necessary city expenditures
for the coming year entered into the
discussion to an extent.
AS chairman Of the light and
water committee Alderman McGhee
recommended the raising of $780,
600 the coming year by direct tax
levy as a sinking fund for the pur-
chase of the plant, but after a
lengthy discussion in which num-
ber of citizens and interested tax
payers took part, the amount was
left at 100000 for the considera-
ton Of the board at meeting to be
held either this afternoon or to-
morrow.
The amount recommended for
permanent improvements has been
materially cut from the sums raised
the past two or three years, the sum
total of the proposed levy being
about the same as last year, while
the tax rate for the coming year has
been figured out as 41.08 mills as
against 44.6 mills this year. In con-
sideration of the fact that the prop
erty values on business property has
been nearly doubled in many in
stances and materially raised in all
cases, this will mean that a man
paying 500 tax this year will pay
very close to double that amount
another season, in many instances.
The question of whether or not
direct levy or bond issue for the
prospective purchase Of the plant
would be the better way to handle
the question brought out the fact
that the mayor is fearful a bond
issue would not carry at this time
for such purpose, but we deem the
mayors contention is wrong; If the
people want to buy the plant they
will vote to bond for such purpose,
and we fail to see why the people
should not be permitted to decide
a matter which so materially affects
the pocket-books of SO many of
them.
In discussion of the question
Cashier Stebbins, of the American
Exchange Bank, gave his opinion
that the raising of so much money
at the present time was not a good
business proposition, contending that
sufficient money could be raised at
almost any time to meet immediate
needs in case of necessity caused
through purchase or through the
building Of a new plant. F. w. Ter
rell spoke along the same lines,
while w. H. Eaton, former mayor,
asserted in plain English that if the
light and water plant makes the
enormous profit attributed to it, it
will pay for itself without adding
the burden to the present genera
tion for the benefit of those who may
come after.
Bert Fesler, assistant city at
tcrney who had been called from
Duluth to be in attendance at the
meeting, expressed a very similar
opinion, stating he did not consider
direct levy would be at all fair tc
this generation when bonds could be
floated at Az o: 5 per cent. Mr.. Fes.
Ter. in speaking of the prospective
plant, asserted that the gross re-
ceipts of the company last year were
upwards of $122,000, while the ex
penses Of operating were about 800,
900. In case of purchase, ever
though the rates be reduced SO pei
cent, at this rate Of profit the PLAN
should be made to carry it's owl
burden and pay for itself within E
limited term of years-the very plea
used by adherents of the municipal
ownership idea at the time of the
original election at which the peo-
pie voted so unanimously to pur.
chase the plant.
Mr.. Fesler, assistant city attorney
who was here in an official ca"acity
was asked his opinion of the reply
to the proposition of the council for
the purchase of the plant, and after
reading same stated that he con-
sidered the reply a very reasonable
one; that unless stipulation should
be made in an acceptance of the
offer the company could not legally
collect for improvements made since
the time of the appraisement on
which the offer was based, and rec
commended that the council as a
whole arrange a meeting with the
directors Of the company looking to
a calm and deliberate consideration
of the matter, that an idea may be
had as to whether or not the CON-
pany intended to make disposition
of the plant or were merely playing