South Bend news-times. (South Bend, Ind.) 1913-1938, 1914-07-17
Pres. Morris of Works Body
Tells Indiana-MiChigan EIeC-
trio Subsidiary That Decade
is Sufficient Test Period.
WILL GRANT RIGHT
TO INSTALL CONDUITS
Three Large Concerns Likely
to Be Served With Heat
From Central Plant Result
of Present Negotiations.

That the st. Joseph Heating CO.
will enter into a contract with the
city to place mains, conduits. man.
holes and other necessities in the
streets for use in the heating of three
of the city's largest buildings may
result from letter sent by the board
OF works Friday morning to the
company. proposed contract from
the heating company has been before
the board for two weeks and with the
exception of a few minor changes,
meets with the approval of the
board.
The St. Joseph Heating Co. is a
subsidiary of the Indiana x Michigan
Electric Co. and it wishes to provide
heating facilities for the Oliver Hotel
CO. properties the buildings owned
by the South Bend WoOlen Co. and
the Stephenson underwear plant
The heat is to be provided from re-
serve boilers owned by the electric
company, which are rarely used in
the every day business of the plant:
The steam from the reserve boilers is
claimed by the company to be a sur
plus product.
Want 50-Year Contract.
The proposed contract states that
the St. Joseph Heating co. shall use
the streets of South Bend for a period
of so years as a practical test of the
proposition. In other cities the plan
has been carried out with more or
less success and in all of them a
slight rental fee was charged the
company offering the contract for
consideration. The fees ranged on "A
scale Of from two to I'VE per cent of
the gross receipts of the company
from the concerns served by the
heat supply.
The works boards chief objection
to the contract was the fact that the
heating company asked for a test
period of so years. Ten years was
thought by the board TO be ample
time for a test period. The board, as
a reason for its stand, stated that the
city at the expiration of the ten years
would be better fitted to declare
whether it wished to continue the
contract or not.
Heating Contracts Private.
The heating cOmpany's contracts
with the companies receiving the
heat supply are in each case private
and personal affairs. The contract
specifies that no other building or
company will be furnished from the
mains unless that building is on the
line of pipe Even then the heating
company and the owners of the
building in question will he forced TO
enter a private and personal contract
with each other. The contract is spe-
cihc in stating that after the lines
have once been installed there VIII
be no further extension of the pipes
or other implements of the pipe con
struction.
Cities which were written To for in
formation and in which the plan has
been in operation for some time are
Terre Haute Evansville, lndianapo-
lis. Sioux City, Erie, Pa; Lincoln,
Neb.. and Kansas City, Mo. In all OF
these the rental fee ranged from two
to five per cent of the gross receipts
of the company.
The board i'm this city decided up
on a rate Of two and one-half per
cent for the first five years, and hve
per cent for the next five. They con-
sidered that a fair average.
Can Extend Contract.
Pres r. NJ. Morris of the board OF
works said Friday morning that attest
period of ten years did not neces-
sarily mean that the contract would
end at that time He said that ten
years was merely the life of the
present contract and that If the city
at that time wished 10 take over a
new contract il was a matter TO be
threshed out then.
The line of pipe as specified In the
contract Is as follows: From the
plant at Bridge and COlfaX SITS 10 Z.
CONTINUED on PAGE TEN)