The labor world. [volume] (Duluth, Minn.) 1896-current, 1915-01-16

CIV FACTS [: {:
{.
Brief History of !! Negotiations
With Company Told Unsigned
Letter to Voters.
EXPERTS SAY THREE CENT
RATE rs POSSIBLE NOW
- 4,
Net Earnings Of Water and Light
Department. Pay Nearly*$1,-
Il. 900; 900 for. Construction.
j.. Duluth, Jan: 12, 1915

and deliberate untruths
have been made and circulated among
the public in behalf of the Duluth Ed
lson company, We feel it is our duty
to warn you against them and to
briefly state few facts Our inter-
est is solely for the best interests Of
the city and it's citizens. We are ac-
countahie . to you and have acted on
the electric light question carefully
without: prejudice and with the best
possible expert advice obtainable.
, t. ,.,. Fair to Company.
: We have, tried to be fair to the
Duluth Edison company, notwith-
that they have failed to full
fill the promises of their officers and
others in number of cases, and have
tried to take unfair advantage, to
create a prejudice against the COM
mission 80 ::
The physical value of the Duluth
Edison plant, determined by the best
experts obtainable, does not exceed
1907, 900.
To this we added 100000 going
value or bonus in making the offer
to purchase for s1,107,000.
The company declined the offer.
It made no, counter proposition.
Though it claimed the valuation too
low, it failed to point out in any de-
tail where the figures were wrong.
1t refused the city the right to ex-
anime its books.
Before two hundred prominent men
its attorney and it's president stated
1n oil H.
late rates. They urged regulation.
Said the company would not oppose
it, but would oppose the purchase of
the plant or the citys building. The
first attempt at regulation they fight
bitterly in the court.
The company procured the initia-
ton Of a six cent ordinance provid-
ing for two year contract.
The commission found the contract
Objectionable in form drawn by the
company's attorney-one that ought
not to be excepted. Yet it cannot be
altered If it is voted. We submitted
an alternative ordinance providing for
a four cent rate: - 80:
Experts Recommend Sc Rate:
The city's experts say that the city
can make a profit on SC per XIV.
Investigation showed other cities
were making money on a SC rate.
Examination of the sworn state
ments Of the company show it could
make ample profits on four cent
rate.
Suppose the courts decide we have
no power to regulate. Our only de-
Tense is to vote the unit ordinance
and furnish competition. Voting for
the six cent contract only postpones
the struggle at high rate for two
years. Why not settle it now?
The city has the $4,000 necessary
on hand in the Water and Light fund
over and above all funds necessary
for improvements and extensions this
year.
the people just what such a plant
costs, to build and operate.
The company will have to meet the
rate Of that unit all over the city or
practically abandon doing business in
that unit district. In the former case
consumers would save more each year
than the $4,000 spent. In the lat
ter case the city will make large prof
it's on the investment and know what
can be done.
Other Units Require Referendum.
In future the public by referendum
canF-decide ON any further units when
proposed.
The Water and Gas plant was Of
fered at g reasonable price only when
the city started competing plant. We
believe if. voters sustain the city by
voting the unit plant, the company
will make a reasonable offer before
any Of the money is expended.
The water. and light department
has paid over 100000 from net earn
ing on additions and betterments to
the plant, Notwithstanding the water
rates were cut in two and the gas
can be done with a lighting plant?
The water and gas purchase elm
mated that Company from corrupt
influence in politics. The corrupt in
fluence of the Duluth Edison should
also be removed.
Duluth proposes to issue no. bonds
for the unit plant.
Operation by the city will be much
cheaper than the company's opera:
ton.
The officers salaries and legal ex-
penses will be largely saved.
The meter readers of the water and
gas department will read the light
meters with little extra cost and the
bookkeeping can be done at g slight
increase. Much of office expense and
rent account will be saved.
There will be not to exceed II per
cent loss in current as against 33 per
cent of the company. -
25 Cycle Now Possible.
The same experts who in 1911 re-
ported the so cycle system prefer
able to the Is cycle system, advised
us in 1914 that because of the per-
lection Of the Mazda lamps and the
modern street lights that the Is cycle
system is fully as good and much
Continued on page s.
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