South Bend news-times. (South Bend, Ind.) 1913-1938, 1914-07-20
Nobody With Grain of Sense
Would Ever Install Heating
Plant for Such Term." Says
Manager Bryan.
INSURES CONTINUANCE
OF "SMOKE NUISANCE"
Oliver Hotel Hit Hard on Re-
modelling PIanS-Mayor Kel-
Ter Asked to Inspect Situa-
ton at Boiler Plant.

THAT the counter proposition from
Pres. Morris of the board Of public
works TO the Indiana & Michigan
Electric Co, with regard TO a iran
chise TO furnish steam for cooking and
heating at the oliver hotel is pro-
hibitive, and that if insisted upon VIII
put an end TO the project, was de-
manager of the electric company Non
day morning Mr.. Ryan says To-
wear contract would be Of no use to
him since il would not enable them TO
carry out a contract wanted 10y the
oliver hotel people and that further
more a 10-year contract would not
justify the investment.
Before going east last week" said
Gen Mgr. Bryan, Il informed the
board OF works that ! would consent
TO a reduction OF the term TO be coy
cred by my proposed contract with
the city, from so to 80 years, and
would agree TO pay two per cent on
gross income. When they come back
and say 10 years is their limit. and
that we would pay y per cent the
first five years, and > per cent there
after, they establish a barrier that
shuts of all further negotiations.
Puts It Up to Mayor.
Mr. Ryan To Mgr. Fred Townsend or
the oliver Hotel Co, Monday morn
ing, and il was not long before Mr..
Townsend and Mayor Keller were IN
conference, the former accompanied
by Milton c. Hartman Of Chicago,
consulting engineer Tor the hotel
company. Exactly what passed be-
tween them is not known, save that
the mayor with Supt TOyne Of the
water department later made a visit
TO the heating plant of the OllNer
hotel, and are said TO have been shown
how impossible IL is 10 install stokers
to dispose Of the existing smoke nul-
sance," without a complete remodel
ing Of the plant
To dispose of this smoke nuisance
was one Of the purposes of the hotel
company soliciting the contract from
the Indiana * Michigan. 1t means
"a lot 10 Us as well as TO the pubic
says Townsend. I'VE are planning
to spend 100000 here on improve
ments TO this hotel. If we have TO
install a heating and electric plant OF
our own on account Of these prohibi-
tory measures of the board OF works,
it wall take part OF that 100000, OF
course, and Will leave Us that much
less to spend on other hotel improve
ments."
Nobody with a grain Of sense
would think OF going to the expense
OF installing a heating plant such as
this would necessitate on a 1O-year
basis" said Mgr. Bryan. speaking fur
ther Of the counter offer from the
city so far as the ? l-2 per cent
or 8 per cent goes, that is merely a
question OF whether the users OF steam
would be willing 10 pay it. These
taxes, franchise fees, etc, always fail
back on the consumer in the end, and
this case would be no exception L
understand the oliver hotel people
are not willing TO pay the additional
fees asked 10y the city, and they are
the only customers we have In sight"
Wants Lighting Contract.
Accordingly II appears that so Tar
as the Indiana * Michigan is con-
cerned, the request for a franchise is
recalled. The manager de-
nies that il was a request for a fran
chise since II VS. not the intention
OF the company TO do a general heat
ing business. 1t is declared that the
situation proposed by him was really
no different than If the oliver Hotel
co. proposed 10 install a plant some
where, exclusively for its own use.
and asked permission 10 lay pipe lines
TO its buildings, beneath the city
streets What the Indiana a. Michi-
gan appears 10 have been after much
as anything is the electric lighting
for the hotel. which is now hghted
from the oliver plant. The new COM
pany must secure other light within
a year, but if il has 10 install a plant
for heating IL will probably make its
own electricity.
Information available shows that il
would cost the Indiana a. Michigan
approximately $4,000 90 install the
plant proposed 10 care toF the hotel
heating. etc. The contract price pro-
posed 10 the hotel company, and ac-
ceptable. IL the right 20 pipe 90 the
hotel were available. is 81 cents per
000 pounds of steam, while figures
show that ID would actually cost the
electric company 30 - cents 10 de-
liver. That this would not be "A profit
able investment on $4,000 appears
luite possible.
supply Not Bi-Product.
The proposed franchise contem-
plated piping from the Indiana a.
Michigan plant east OF the river. p
meath the Colfax ay.. bridge. south
IN ". Michigan ST 10 Canal ST. and
Down Canal west 10 the oliver opera
house 90 which there is already pipes
eading 20 the hotel, that would be
connected with 4 subsidiars- com
)any. % be known as the ST. Joseph
Ieating Co. was proposed 20 90
'Ormed TO transact the heating husi-
ness.
The board Of works misunderstands
he situation" says Engineer Hart-
nan. speaking for the hotel company.
The steam 20 De furnished as ls not
.o be "a bi-prOduct of the electric
plant exhaust steam he says. but
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