South Bend news-times. (South Bend, Ind.) 1913-1938, 1914-07-21
Meets With Board of Works
and Urges Contract With |.
& NJ. for Steam for the
Oliver Hotel.
SAYS CITY AS WELL AS
HOTEL WOULD PROFIT
Another Meeting Proposed at
Which Electric Co. Manager
Will Be Present - Board
Willing to Negotiate.

without results other than an
agreement on the part Of the board
OF works To meet with Gen. Mgr.
Fred 4. BRYAN of the Indiana q
Michigan Electric CO. Tuesday night
or at his convenience for the puf-
pose of going over the oliver hotel
heating situation. the board enter
tanned Mgr Fred Townsend of the
hotel company. ahd his consulting
engineer, Milton g. Hartman, at its
session Tuesday. Mgr. Bryan was IN
Chicago, which accounts for his ab-
sence from the meeting.
we are anxious that the contract
between the city and Mr.. Bryan he
made" said Mgr. Townsend. referring
To the heating contract applied for a
couple of weeks since bN the 81 Jo-
seph Heating Co. a subsidiary of the
Indiana x Michigan Electric CO 1T
will enable as 10 go ahead with our
remodeling, at a smaller expense, and
at the same time eliminate that
smoke nuisance at the hotel, OF
which the city IS complaining" lie
dwelt upon the smoke nuisance
quite extensively. arguing that the
city should measure up TO the pro-
posed contract for that reason alone.
I'VE want 30 do all we can 20
eliminate the smoke nuinance,' but
we can't give away our streets and
alleys killing the most fertile field
in the city for a general heating
plant without reserving some com
pensation for the city. was the an
so.er of John b. Weber. board mem
ber Comparison with other cities
has led US 10 believe that two and
half per cent of gross income. the
first five years, and five per cent the
second five, on ten-year contract
would be about right Then at the
end Of ten years the contract could
be renewed on terms agreeable be-
tween the city and company at mat
time"
Utility Deserves Profit.
But YOU fail to see the point that
the two and a half or five percent on
those gross earnings would have 10
come out of the Oliver Hotel Co.
Mgr. Townsend came back. "It would
have TO be added 10 the price IN the
contract agreement already made
since we understood that there is no
profit to the heating company in the
offer made US"
Wen. there ought TO be-" City
Atty. Seebirt piped in. Utilities are
not supposed To be doing business
without a fair profit They are en-
titled to it, and the people who are
customers of the utility product
should pay sufficient so that the
utility can compensate the city for
franchise rights in streets and alleys
that belong 10 the whole public, GUS
toners and nOn-customers Of the
utility alike"
tt developed in answer TO this that
while the St Joseph Heating Co. was
not expecting 10 make anything or
from the hotel company. the Indt-
ana &, Michigan Electric Co. the
parent company. was 10 have the
lighting of the hotel along with the
contract. and that is where the proht
was TO come from.
Very we'll then" said the city at
tornev 1T appears that there rs 10
be a profit after all. and out Of that
profit the city thinks IL should have
compensation for the use OF its
streets and alleys. without which the
profit is impossible"
Pres. Morris called the attention OF
MI Townsend 10 the fact that the
contract submitted calls for more
than the privilege Of piping from
the Indiana * Michigan steam plant
to the Oliver hotel, but proposes TO
supply steam 10 the Stephenson Co.
and wooden mills. and reserves the
right 70 furnish steam 20 other insti-
tutiOns along its line. upon resolution
and agreement. The contract says
so years" said Pres. Morris. and the
first suggestion that a lesser period,
like so years. would be acceptable, or
that two per cent would be conceded
and paid for the right OF way. reached
us this morning We have nothing
before us but the contract as sub
mitted 20 deal with. and that involves
great deal more than furnishing
steam TO the oliver hotel"
Plant Benefit 10 City.
Make the other fellows pay "a fran
chise tax" was Mgr. Townsend's COM
ment.
Make them pay and let you 90
without paying Member Rice OF the
board asked.
They have no smoke nuisance
that would be abated for the benefit
OF the city" Mr. Townsend pointed
out In our case the city IS getting
something as well as we by having
that smoke disposed Of
Mr.. Townsend pointed out that
there would be nothing unreasonable
in allowing the heating company TO
lay pipes from the l. a. ~. plant 10
the hotel for the latter's exclusive
use and that then III anyone else
should wish 20 connect require "a tax
on the gross income 10 he collected
from such additional customers. En-
gineer Hartman pointed out that Z.
plant connecting The hotel with the
l. g. NJ steam plant would cost the
heating company $4,000 on which
there would be an income of about
S12. 600 for steam The suggestion
was made that the tax might hegip
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