South Bend news-times. (South Bend, Ind.) 1913-1938, 1915-10-23


Tor period OF ten years from the date Of
this contract. But that after said time
SAID privilege OF purchase shall be In full
force and binding on the party Of the sec
ond part. its Successors and assigns under
the conditions herein recited.
= said person. firm or corporation 50
desiring 10 purchase and take over the said
property OF the party Of the second part,
shall have first procured a franchise. In all
things duly and legally executed and
approved, authorizing such person. firm OF
cofpoTation to do heating business in
said City Of South Bend. and binding II or
them 10 serve any or all persons entitled
by law % such service within the following
described territory in said city or any
larger district including the same, viz:
That part Of said City bounded on the
east by the alley east OF Michigan Street
and running parallel thereto; on the west
Dy the alley west Of Lafayette Street and
ColfaX Avenue; on the south BY Wayne
Street Ninety days Immediately preced-
Ing the passage OF said franchise, written
nVuce shall De given second party that
such franchise Viii be granted by first
party, unless satisfactory evidenve be
shown the Common Council that the second
party VIII cover above described territory
wlUhln reasonably definite time.
3. That the grantee of such franchise
shall at the time the same Is executed, file
with the Board of Public Works a bond
in the sum OF Of Five Thousand Dollars
tSoUOOOUl with a surety TO the approval
OF said Board, conditioned for the faith
ful performance of all the terms and con
ditiOns of It's said franchise.
l. said person. firm or corporation,
shall then serve upon the party OF the sec
Ond part, its successors or assigns, a writ
ten notice stating that il desires 10 and
viii purchase SAID property of the second
party under the terms and conditions OF
this contract, and they shall first endeavoT
10 agree upon the value of the property 10
be purchased, and the purchase price, terms
and conditions OF sale; and II they should
IN fh.ac fnn Of
thirty days from the time of the service of
said notice, then said purchaser and said
second party shall each choose and select
competent person familiar with public
utility property, which two persons shall
select third person, who shall not be res
ident OF Indiana, aud who shall be compe-
tent, reputable and ulSintereSted engineer,
who must be q full member Of either the
American Society of Civil Engineers,
American Society OF Mechanical Engineers,
or the American Institute OF Electrical En-
ginecrS, aud familiar with the heating bust
ness ana having knowledge or the value OF
such property and who at the time of his
selection shall not be In the employ OF
either OF the parties nor interested in any
way in any Of the business enterprises OF
either of said parties or Of the City.--said
three persons shall at once proceed 20 make
an inventory, valuation and appraisement
OF all property Of the party of the second
part used and useful in the conduct Of its
business. Said persons SO selected shall
have free and complete access 10 ali the
papers. records. books, contracts, offices
and property of the second party. which
they may demand for the purpose of max.
ing such valuation and said persons shall
determine the fair present value of said
property and in arriving at and determin-
ing the same they shall allow 10 the par,
~ Of the second part, its successors or as
signs all those elements Of value recognized
and claimed by going concern including
therein going value" or cost Of having
brought hte business 20 its then state OF
perfection, and said going value" shall
not be determined TO be less than the de-
ficiency OF net earnings below Il fair re-
turn on the actual investment or eXpendi.
ture made necessary and proper for the de-
velOpment of the business and property to
bring IL to its then state Of development,
after allowing for reasonable depreciation,
together with interest on the yearly def
ciencieS If any exist, and said going val
Ne shall not be included I'm the physical
value but shall be added thereto in de-
termin1ng the present value. Said party OF
the second part shall keep its books and
accounts in such a manner that going value
as above defined may be readily Calcu
lated. Upon the completion Of said inven-
tory and valuation said persons shall
promptly furnish a copy thereof TO said
purchaser and the second party and shall
state the amount OF purchase price TO be
paid 10 said second party, which deter
limitations shall be final and conclusive up
on said parties and said purchaser shall
be bound 10 pay said amount in cash 10
the second party within sixty days from
appraisers and upon the payment Of said
purchase price, said purchaser shall imme-
diately take possession of all the property
covered by said inventory, and said pur-
chaser shall also proceed 10 furnish ser
vice TO all persons desiring the same in
such manner that the service formerly rem
terrupted or interfered with. IL there is a
failure to purchase or TO pay then the first
party shall pay second party all the costs
and expenses Occasioned IL by said trans
action.
3 If any boilers or other equipment
have been added TO the property of the In
diana K Michigan Electric Company by
said last named Company for furnishing
steam and heat TO the second party and TO
enable il to perform this contract and It's
contracts with customers. the said Indiana
4 Michigan Electric Company may elect to
include any such additions IN said sale by
serving a notice upon said purchaser TO
that effect. And said appraisers shall value
said property at its present value In the
OF the second part is valued, and 10 the
purchase price of the same they shall add
the estimated cost of removing said addi-
tons from the plant of the Indiana q
Michigan Electric Company, provided said
Electric Company removes same, and they
shall report such valuations and purchase
price, and the same shall be paid in the
same manner as in the case Of the party OF
the second part But said appraisers
shall not include in such additions any
buildings, real estate, or any other proper
" beng used also DI SdlQ company III
generating and furnishing electricity.
6. The purchaser and the second party
shall pay the compensation OF the apprais-
er respectively selected by each, and each
shall pay One-hah Of the reasonable COM
penSatiOn Of the third appraiser selected by
said two. if said sale is perfected and COM
pleted.
Sec. LIT is further provided and
agreed TO by and between the parties hereto
that the privilege of purchasing the prop
erty of the party Of the second part by
some person, firm or corporation, other
than the City. shall be in all things null
and void. If the party Of the second part
it's successors OF assigns, shall within ten
years from the date hereof. or befOpe any
franchise for doing a heating business Is
granted by the City TO any other person,
firm or corporation. have so extended its
plant and system so that IL Is Adequately
serving all persons desiring such service
within the district bounded and described
In Section Is above.
Sec 15-That the said second party
hereto shall not be required 10 render ser
vice 10 any customer or patron hereunder
when the outside temperature shall be or
exceed sixty degrees Fahrenheit
Sec 16-That said second party shall not
be required 10 render service of any kind