The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1915-04-20

Behind closed doors a report was
then submitted to council, signed by
Mayor Robbins, the members of the
board of public works, the members
OF the special citizens committee, L.
A. Handley, William Fahlsing, w. X.
Bradbury. Charles W. Jordan and
Pettis A. Reid. City Attorney Bond
and Plant Supt. Kleinknecht, urging
that the municipal legislative body
give its approval to the plan and to
pledge itself to appropriate what sum
will be required to consummate the
deal and to cooperate with the Off
cials and special citizens commission
in carrying out the project to a sue
cessful elimination by appointing
committee of not less than three of its
members to assist in the work.
City Dreams Of Monopoly.
City officials for years have dream
ed of the city enjoying a monopoly c.
the electric business and the council
men, although surprised by the unex-
pected proposal for the purchase of
the municipal plants competitor.
were instantly ready to give whole
hearted approval of the plan. After a
general discussion the committee of
the whole was dissolved and council
then adopted the resolution. which ap-
pears elsewhere. Mayor Robbins ap-
pointed w. P. O'Neal. Ebert Russell
and Oscar Williams as the special
council committee to act with the
board of public works and the citi-
zens' committee.
1t was explained to council by May
or Robbins and City Attorney Bond
that the city, under the provisions Of
<I,@ T,,Is
sion law. had the authority to take ov-
er the electric business of the Light,
Heat & Power company.
Cites Engineers Figures.
1t was further stated by Supt
kleinknecht Of the municipal plant,
and by Z. E. Watts, electrical engi-
neer who has been employed by the
city to prepare an inventory Of the
city plant. that under existing rates
the city plant could within three years
after the proposed merger earn
enough to redeem the bonds issued for
purchasing the competing plant. but
to provide for the original bonded in
debtedness, $139.O0O which falls due
in 1927.
Recently the engineers of the state
commission placed present value OF
s161, 500 on the electric plant Of the
Light, Heat & Power company. which
valuation was accepted by that COM
pany in brief filed with the commits
sion few days ago. This present
value will figure in sale price for used
and useful values of the electric
branch OF the Light, Heat & Power
company. to be established by the
state commission, plus certain intan-
gible values. including going concern,
these intangible values to be deter
mined in the main by the profits of
the electric business of the company,
which last year was only little in eX-
cess of $1,000. as shown by the book
audit recently taken by the commits
sion's auditors. No franchise value
would be figured in. the company
having surrendered its franchise.
Plant to Cost $20o, 600.
Although the city officials decline
to state what they anticipate the COM
mission will establish as sale value
Watts said today that he thought 1t
the plant as established by the COM
mission engineers" 1t is believed the
city officials think the sale value will
be about 100000.
Judging from the business the mu-
nicipal plant has done the first three
months of this year there will be
available in the general fund and the
sinking fund of the plant by Septem-
Der 10. this year, approximately
100000 which can be applied to the
purchase Of the competing electric
plant. The remainder of the purchase
price could be raised through the,
[continued On PAGE sevsn.l