The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1915-04-22

Citizens generally are taking much
interest in the question, and with few
exceptions, entertain no prejudice
against the proposed elimination of
competition in the industry which the
city has profitably engaged in for a
number of years. They are divided,
| however, on the question of the best
method to pursue in the elimination OF
this competition.
A number Of business men favor
a plan to have the city take over the
electrical business of its competitor.
Propose Another Plan.
i On the other hand, investigation re-
veals quite few business men are OF
the opinion that the question of the
city selling or leasing its plant, prefer
ably the latter action, to the United
Gas and Electric corporation. which
owns the Light, Heat and Power com.
pany of this city, is one which Is well
worth serious considerations. It is also
understood that the United Gas and
Electric company stands ready at any
time to give such a proposal serious
consideration.
Those citizens who have withheld
their support of the plan worked out
by the city officials, which has pro-
gressed to the point of the filing OF
notice of condemnation proceedings
with the state public utilities COM
mission, and the fixing of June Is as
the date Of hearing before that body
to determine what compensation shall
be paid by the city for the competing
plant, question whether such action
would be a stroke of good business
policy.
Fear Indebtedness.
| In other words these citizens are not
keen about adding 100000 or more
to the city's bonded Indebtedness.
They doubt very much if a console
dation of the two electric plants un
der the anagement of the city would
reduce the cost of operation nearly as
much as advocates of municipal1Zed
monopoly have asserted. They also
point out that the municipal plant has
been injected into politics recently and
with changing city administrations
there would be no guarantee that the
municipal plant would for any length
of time be operated up to a high
standard of efficiency and in the best
interests of the citizens and the city
itself.
Competition With Gas.
Deprived of its electrical business
MANY of the opponents of the plan fol
the city to purchase the L., n. and r
electric plant also see menace to the
municipalities monopoly experiment by
the anticipated action of the Light
Heat and Power company pushing it:
gas business so vigorously that the
CITY plant would be confronted by
serious competition which it does mo-
now have to contend with. In man!
cities, they point out, the gas lllum
nation business has progressed 81
rapidly in recent years that the elec
trio plants have been seriously EN-
barrassed. This end of the gas in
dustrv has never been developed b,
the Richmond Light, Heat and Powe
company as it did not desire suci
competition for its electrical business
Points in Argument.
Those who are in favor of eliminat
!, ing local competition in the electrica
business by leasing the municipa
plant to the Light, Heat and Powe
company. advance these arguments:
; First, a private corporation can con
duct business on a more efficient basi
than a municipality owned plant.
Second, that under such a plan tn
city could obtain all the benefit
which are anticipated through tn
purchase of the L., H. and P. electrl
plant without the expenditure of
cent; a liberal rental payment by tn
company to the city annually and tn
establishment of maximum rates, fai
to both citizens and company, beinl
provided in the contract.
They also point out that the com
: pany, in such an event, would have t
( operate its plant under the direct su
pervision Of the state public servic
: commission, which would be sufficien
: guarantee that the best interests o
:. the public would be safeguarded at al
times.
: Admit Right to Buy.
Officers of the Light, Heat & Powe
;. company agreed today that the cit
t had the power, under the state Law
2 to take over the electric plant of tn
: Light, Heat & Power company by cor
demnation If it SO desired, admitting
l that the gas and electrical units Of tn