The labor world. [volume] (Duluth, Minn.) 1896-current, 1914-10-24
CLUB. HoNoRss . II. i:
OWNERSHIP MEN
Continued, ,Fpom Page One.

tion.t We found it difficult to keep
competent city employees whose bus
mess it WAS to check things up.
The city did secure a man who was
competent in every way, efficient hon
est and good lighting expert. When
the city got in close quarters with the
company, on a question Of poles and
service, the company saw IN this man
valuable addition to their concern
and tried to- secure him.. They
promptly Offered him a. salary very
much larger than he was receiving
: from the city, with the stipulation that
IF he was, to accept 1T must be accept
was so attractive that the gentleman
thought he could not refuse it and the
city at a Gerry critical time was left in
d. hole: - ~
II have no personal knowledge my
self of any corruption on the part Of
the company Of city officials. Judge
Fesler, however, mentioned to me the
incident at the time which he made
reference in his speech. Their acttv-
ity in politics they would not them
selves deny.
Corruption in Council.
Some alderman claimed that It
was difficult for them to secure their
light bills. One alderman made a pre-
emptory demand at the company's Of
flee for his bill before he could Sc
cure it. The Officers and employees
of the company were always found
very courteous. The manager, Mr.. Van
Bergen, has Lord Chesterfield beaten
mile when It comes to courtesy and
politeness and good temper. =:
'When in the council it was my
experience that there was no diff
way Of things to be done. It was al
and get, fulfillment Of promises made
until their hour arrived. The Irish
mans flea is stationary animal In
comparison. With street railway Of
ficials it was differentiated promises
were hard to get but they would keep
them when secured. I see by the ex-
perts' report that they had the same
experience with the company.
That the citizens of Duluth are
still paying about three times too
much for their light can be proven
by their own statement filed in the
city hall, a copy Of which I hold in
my hand. This shows cost of the
plant equipment up to January 81 of
| s3,0s2.124.s6. 49,.
Exhorbitant Profits. -.
ION this the company earned for
1913 net after all expenses overhead
and operated, including taxes, of
$238,090 for 7 3-4 per cent on this
large capitalization, large bond in
debtedness and large amount Of pre-
ferred and common stock; 34 per
cent on all the actual investment, on
all the water poured into the property,
on all the reorganizations all piled on
, cent. Under the new proposition 6 per
; cent: At the city's estimate of the
plant at the value of the plant at
present a profit of rs per cent, 20 per
cent under last proposition, a profit,
would in four years pay for tn e plant,
| or under new proposed contract five
! years, or in ten years pay the city's
entire general bond debt. exclusive
of the water and light department.
And in addition the city could save,
after allowing for the $4,000 taxes.
| $4,000 In operation.
"Just Horse Sense"
'This Is not a question of municipal
! ownership, but just of horse sense.
The reasonable way would be TO:
| these gentlemen to sit down with the
city commission committee of the
Commercial club and arrange a fair
thing extra for good will, going value,
~ !.
! trouble. But these gentlemen show
their teeth and advise us they will
| fight to the bitter end, as>though the
| city had no right. In private affairs
they tell you that and you will fight.
! The Duluth Edison has no exclusive
franchise, and the city has therefore
I perfect moral as we'll as a legal
right, II they can make a better deal
by giving another franchise to an
other concern, or to go into the build
! ing Of, a plant themselves, II In the
! judgment of the citizens it is a. pro-
fitable thing for them to do. The
business does not belong to the cleo
trio company; it belongs to the city,
it belongs to the citizens of Duluth.
| Certain concerns in the. city found 1t
more profitable to make and distri-
! butte their own electricity, so Of course
put in their own plant Other con-
Germs in this city having Sufficient
business to warrant them putting in
their own laundries, did so, and no
/ one questioned their right. Why
should the city's right be questioned?','
49,. Mr.. Hudson's Views. .
In discussing the business aspects
of the case, Mr.. Hudson said that he
was going to accept the report of the
city's engineers as correct. as no proof
had yet been offered to refuse it.
After discussing the company's report
ana commenting upon it's heavy earn
| ings, he declared that the situation
looks so bad for the company that 1t
has offered two-year contract so
that the. municipal ownership men,
who. look after the real interests of
the city, will do nothing for two years.
At the end Of that time, he added,
the company will be endeavoring to
cause further delay.
+ Mr.. Hudson cited that after, two
years of loss. the Winnipeg plant is
now selling current for cents per
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