The Bourbon news. [volume] (Paris, Ky.) 1895-19??, 1918-09-20

vanced its rates to private consumers
from 5 to 20 per cent and also adj
vanced the minimum charge on
motors in many cases from so to 100
per cent and threatened to discon-
tinue the service Of all those who
failed to obey it's edict, going so far
as to cut off the service from the City
Binding because we refused to pay
a minimum charge of $40 for city
rock crusher a month against charge
of 50 a month, which was all that they
had charged or collected for that ser
vice for years prior thereto. The
City promptly appealed to the courts
and the Company was required to
restore the service. Further, it de-
fed the resolution Of the Board of
Council requesting information as to
its property and business in order
that the Board might be informed as
to the reasonableness of chargesto the
people. Thereupon our expert again
made Independent studies and based
upon his report, fixed and determined
certain rates and charges to be rea-
sonable to the people and to the Com
pany alike. These rates were SUBJ
mitted to the Company, and it was
requested to put them in force by a
given date, or, if it desired to be
heard in opposition thereto it was
notified that the opportunity would be
given it, under conditions, however,
that whatever rates might be so fixed
or agreed upon finally should accrue
to the people as of a definite date, so
that the people would be protected
against any further delays caused
by the Company. In a conference
on the matter the Company sought
to induce the City to postpone the
enactment of the rate ordinance to
an uncertain date, declining however
to enter into the agreement to OBJ
serve said rates or any others that
might be agreed upon as of date
fixed. Accordingly the ordinance was
enacted and put into effect, but owing
to the fact that the Company went
into the courts and enjoined the en-
forcement Of the ordinance, the
people have thus far been denied the
benefit of said reduced rates. The
City hopes to have the case heard on
its merits at the November term of
the court. Our expert now advises
us that the rates fixed in said ordi-
nance are considerably more than the
reasonable worth of the service and
that at said rates the Company can
still earn sum largely in excess of
a fair return-reasonable profit-on
the fair value of its electric prop
erty. We have reason to share his
views and shall be governed accord
ingly.
Void Contracts.
In prosecuting his studies, our ex-
pert had to examine the City records,
and this enabled him to discover that
in December 1912 the City attempted
to make contract with the Company
for two years and in 1915 attempted
to make a contract for three years
for the electric street lighting, with
out submitting the contract to the
vote of the people, as is required by
the supreme law of the Common
wealth. Under said contract, had the
City refused to pay the lighting bills
the Company could not have collect
ed one dollar thereof at law. See
Sec. 157 KY. Constitution. However,
since the City did pay these unjust
and unreasonable charges for street
lighting, it nevertheless has a claim
against the Company for all sums in
excess of the reasonable value of said
services for the five years next pre-.
ceding the date of the institution OF
a suit therefor in equity. Worrell
Mfg. Co. v. Ashland, 159 Ky. CSC and
cases there cited; see also "a Amer
lean State reports 424 and notes.
The City feels confident that it will
be able to prove that the value OF
worth of the street lighting service
furnished by the Paris Gas & Elec-
trio Company during said five years
does not exceed $4,000 a year, and in.
asmuch as it has paid an average OF
$1,000 year therefor, it's claim fol-
PREPARATION will amount to approx.
mately SIS, 900 plus interest. As the
agents of the people and in pro.
lection of the taxpayers money # is
the duty of the Board to seek to re-
cover all monies unlawfully paid fol-
said service. and accordingly the
Board has directed the City Attor-
ney to file suit to the next term of
the court.
At the request of the Company
Messrs.. Kiser, Merringer and Veatch
composing the Light Committee, my
self, Judge Dundon, and Mr.. Weiss,
representing the City, had a confer
ShSO Will CIc OlllCldlS OIL The COMPANY
on September 10, but no inclination
was shown by it to deal frankly and
openly with the City on the matters
at issue, its chief aim seemingly be-
ng to camouflage the City and to try
o get away from making reparation
under said void contract by offering a
slight concession in rates and charges
for street lighting and to private con-
sumers. This opinion was confirmed
by the offer it made last Friday of
which you have already given an ac-
count.
The City has no disposition to deal
other than fairly with the Company
put to do so it must have the facts
which are in possession of the Com
pany with respect to it's investment.
It's revenues and expenses as a basis
for, determining what are fair rates
and charges to the people, the City
and the Company. Of course. the
Company knows that upon these
facts, rates determined according to