The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1915-04-21

With the filing of this brief the COM
mission is expected to dismiss the
case now pending for establishing
joint lighting and power rates for the
two local plants, and to establish val.
uations for each of these plants. This
case was to have come up for hearing
on April IS.
1t has been reported that officials of
the United Gas & Electric company of
New York, the corporation owning the
Richmond Light, Heat & Power COM
pany, might seek to prevent the city
from acquiring its local electric plant
by raising the point that the city
could not take this over without pur.
chasing at the same time its other
unit, the natural gas business. This is
scoffed at, however, by President
Bavis of the board and City Attorney
Bond.
THE Light, Heat & Power company
has never conducted its gas utility and
its electric utility as one business" "
Mr.. Bavis said. Both units have al.
ways been segregated and each con-
Quoted as a separate industry. This
fact is clearly shown in the report of
the audit recently made of the Light,
Heat & Power company's books by
commission accountants"
Two Units Separate.
Mr. Bavis then showed the pay roll
report of the executive officers and Of
flee employees of the company. In
each instance y per cent of their SAL
ary was charged against the gas unit
and % per cent against the electric
unit
In the absence of any authoritative
statement as to the attitude the
United Gas &, Electric company will
assume toward the city's effort to Sc
cure through condemnation proceed.
ings its local electric business a re-
port receiving more credence than any
other is to the effect that the United
Gas & Electric corporation will be per-
fectly willing to have the city monopo-
lize the local electric lighting and pow-
er industry providing it receives sat
isfactory compensation for its eIec-
trio plant
There is one element to be serious
ly considered by the city the prosecu-
tlon of its plan to buy out the pri-
vately owned electric plant. That is
whether the amount of bonds which
would be necessary to issue to con-
summate the deal would make the
clty's total bonded Indebtedness in ex-
cess of its legal limit of bond indebt-
edness. This is $320,OOO at the pres.
ent time, or two per cent of the net
taxable valuation of the city, which is
$16,5OO,OOO.
Holds 100000 Ready.
1t is anticipated that the sale value
or the electric plant of the Light, Heat
and Power company will be fixed by
the state commission at not less than
$2O0.OOO. Supt. klenknecht of the mu-
n1cipal plant. says there will be about
100000 available to apply to the pur-
chase amount. Such being the case
the city would have to float bonds for
at least 100000 to make up the diff
ference.
At the present time the city's bond.
ed Indebtedness amounts to $173.5O0,
but by October of this year $4,000 of
this debt will have been paid off, leav-
ing $156,500 unmatured, as follows:
$4,000 bonds for the municipal cleo
trio plant. falling due in 1927, and
$17,50O for municipal funding, matur-
ing in November. 1916.
With the city's present bonded in
debtedness 100000 additional could
pe dOueu loI tue purpose OF securing
a monopoly of the local electrical in
dustry, and the totaled Indebtedness
still be inside the legal limit, If it was
not for the fact that bond issue of
at least 100000 will be necessary to
finance the city's share of the cost of
permanent street and sewer improve
ments ordered or contemplated this
year. If 100000 in bonds is floated
this year for such purposes the city's
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