The labor world. [volume] (Duluth, Minn.) 1896-current, 1913-06-14

ship, and until the people had at an.
other election showed that they had
changed their minds. the commission
should do everything possible to car:
ry out their instructions. s
To objections against the purchase
| on the grounds that bonds might not
be disposed Of easily, Presiden Otto
F. Eick, of the Labor assembly re.
| sponded by calling attention to the
fact that the bonds which had not
been sold were for building school
non-revenue producing institution
The traction bonds would be used fol
the purchase of a property which
would earn more than enough to pay
up the bonds and meet the interest
on them. -,
Debt to Linley. ~"
Harry Hatch stated that he was for
ownership as soon as possible, and
suggested that while the city was
taking over the system it should not
forget the debt it owed Senator Vic
tor Linley, through whose efforts the
taking over of the system was made
possible. He also stated that the
city owed a great deal to the Mil
waukee delegation in the legislature
which worked hard for the passage of
the bill.
Charles w.. Swanson, another labor
delegate, likewise urged that owner
ship and not compromise be the pol.
icy to be followed by the city in hand
ling the traction problem.
Attorney Lewis Hanitch then went
Into thorough discussion Of the
conditions which made the acuuisi-
ton Of the traction property by the
city desirable, and quoted statistics to
show that the property should be a
revenue producer for the o1,y from the
start.
Hanitch Makes Statement.
according to the admission of the
company's officials the concern is at
the present time earning enough to
pay all operating expenses and in adj
dltlon pay 5 per cent interest on. ST.
$4,000 worth of bonds, four per cent
on $l,5OO,0OO worth of preferred
stock, and per cent on $3,5o0;0o0
worth of common stock. The vice
president of the company stated that
the earnings were increasing to such
an extent that it was soon expected
that six per cent could be paid on
the $3,500,000 worth of common
stock.
The railroad commission Of Wis
consin has fixed the value of the Su-
perlor portion of the system, taking
into consideration all elements of val
ue, at 100000. The worth of the
physical value was fixed at 100000.
This is one half of what the Duluth
system Is valued at by the commits
sion.
From this we find that the COM
pany is paying interest on 1880, 900
TWO-SUPERIOR
from the earnings of a. plant the
value of which is $2,1oo,ooo. It GER
tainly seems that if the company ia
now able to pay interest on that much
money that the city could. take over
the property, earn enough to paw in
terest on the bonds that would be is
sued for the purchase, and in addi-
ton have a substantial surplus each
year. - g y:
Ownership Advantages. w.
superior has p. talked sniunicipal
ownership OF. its utilities, and then but
1t off from time to time while Duluth
mas been going ahead and acquiring
tnem. AS result they are getting
their gas 25 per cent cheaper than
we are, and their water 40 per cent
cheaper. Now they are about to take
over the electric system, and thew will
have another saving. Now is the
tlne for Superior to act. The prop
erty can be acquired at a reasonable
price, and with it's acquisition we
can get the things that we want. ex-
tensions, more cars, less crowded,
cars, and other improvements. The
operation of the system will be a
simple matter, the power we buy al
ready for use.
For these reasons I move you that
1t be the sense of this meeting that
the city commission take Immediate
steps to acquire the street railway
system of Superior
The motion was seconded and
passed unanimously.
Those present at the meeting aside
from the three city commissioners
were: From the Trades assembly. J.
r. Clemens, Charles w. Swanson.
G. Swanson, r. S. Hitler, Lewis Oak
land, A. w. Anderson, Anton Hagen,
e. T. Harris, o. r. Eick, George A:
s. Allen, Harry Hatch, George Fern.
Q. e. Eby, N. G. Penfound, The Com
mercial club was represented by B.
J. Van Week, F. B. Jerrad; J. T. MUIR
ply, John M. McCabe and Louis
Hanitch. --.. ~