The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1915-02-09
Believes Municipality Should
Receive Returns From the
Light Plant or 6 Per Cent
on Investment.
CONSULTS WITH CLUB
Interested Business Men and
Officials Take Steps to
Get Permission From the
legislature.

AACAS ID uo" 1o1,VVu IN tuN EeuSfdI
fund of the municipal electric plant I
am confident that by the close of this
year that fund viii be large enough
that by transferring its monies to the
sinking fund Of the plant IT would not
be necessary to pay another penny in
to the sinking fund from that time un-
til the plant bonds, which amount to
$l39, ,0U0, mature In 1927. The inter.
est the sinking fund would bear after
this year under the plan have men
toned would bring the fund well
above $139.0O0 by 1927"
This statement was made today by
Mayor Robbins, who Is greatly inter
ested in having such legislation enact
ed by the legislature before its ad-
journment whereby the city of Rich
mond can receive a share of the elec-
trio plant profits annually for public
improvements and municipal operat-
ing expenses.
Plan For Conference.
Thursday night the mayor. members
of the board of public works, Secre-
tary Jordan of the Commercial club
and members of the public service
committee of that organization will
hold a meeting to discuss the question
raised by Mayor Robbins.
There is not the slightest doubt
that the city plant can easily care for
It's bonded Indebtedness" Mayor Rob-
bins said today. Il also think that ev-
cry citizen is in sympathy with any
feasible method whereby the city gov
eminent can share in plant profits.
mo action along this line can be
taken, however, unless authority is
obtained from the legislature.
Il have two plans in mind whereby
the city can share in the plant profits.
One l have mentioned, to pay enough
into the sinking fund at the close of
this year SO that 1t will not be nee
essary to make further payments to
that fluid. Bodor such an arrange
ment the city would receive all plant
profits after operating expenses. de-
probation and building and equipment
had been provided for.
Explains Second Method.
"The other plan provides for contin-
uance of our present policy of paying
$666 month into the sinking fund
until the date Of the maturity of the
bonds and to provide that the city
shall receive annually six per cent on
the investment in the plant, which
would mean, l have estimated, an ad-
dition of about $4,000 a year for the
general fund of the city.
Under the first plan the city's
share of plant profits would be larger
possibly $4,000, for the payment of
$1,000 a year into the sinking fund
would cease. With such an increase in
revenue for the city l think slight
decrease in the tax rate would be
possible.
"If some plan is not provided where
by the city can receive share OF
plant profits, the plant surplus each
year can only be put away and be Of
no benefit to the plant itself or to the
city.
"Urder the state utilities commits
sion law the city plants competitor Is
entitled to six per cent per annum on
its investment. Why shouldn't the
city be entitled to the same return?
The city plant, if permitted by law.
could reduce its rates to such figure
as to put its competitor out Of busi-
ness, but the city is not allowed to do
this. The commission will not per-
NIT the establishment Of a rate which
will be Improbable to the Light.
Heat & Power company, therefore II
our direct benefits from the city plant
are not to be in the shape of the low
est possible rates for lighting and
power, then the city should be per-
mitted to share in the plant profits.
to provide city betterments."