The central record. (Lancaster, Ky.) 18??-current, 1920-07-01
ELECTRIC LIGHT
FRANCHISE.
To The People OF Lam
caster, Kentucky.

~ A.f kliilf w NAlNli.A1fh NIl' 't'N-
trio light franchise We believed In
good faith that 10 was valid and
thought SO up until a short time ago
when We decided in good faith to ap-
ply 70 the City Council for an in
crease iu rates under this franchise
on account Of the high cost Of run
ming the plant When We construct
ed the plant the operating expenses
for the amount Of electricity now con-
sumcd. nj the cost Of coal materials
and labor at that time were about
S12.II3.5g annually. The operating
expenses for the year beginning July
/, 1920, for the same amount Of
electricity is estimated to be about
S33. 207. SO. chiefly on account Of the
high cost Of coal and the increase in
the cost Of labor as well a. material
Of every kind.
Electric light companies every
where are asking for and in many
cases are being granted increases in
rates, where they are operating un-
der a Wild franchise. and are giving
notice that they must quit unless they
get some relief on account Of the
enormous cost Of coal and material.
We believed at the time we made the
| application for an increase. and be-
lieve now. that the Council. being
fair men. would have granted Us an
increase on account Of this great diff
ference in the cost Of operation. We
employed an attorney TO draw up a
supplemental contract under our ex-
isting franchise and he discovered
that the franchise was void. and
therefore. could not be legally amend
ed. and this was the first time we ever
had such an intimation. The matter
has been taken before Judge Hardin.
a. well as the Court Of Appeals. and
both the Circuit Judge and the Court
Of Appeals have decided the franchise
TO be void because in conflict with
section lGi Of the Constitution Of the
State Of Kentucky. When we found
that our franchise was void we were
like a person who might be in poss-
cssion Of farm without any deed TO
IT, No good business man would
build valuable and lasting improve
ments on piece Of land TO which he
held no title. and likewise. good bust
ness prevented US from making val
liable Improvements under the fran
chise which gave Us no title or rights
10 the use Of the streets. We did not
desire an increase OF rates under a
void franchise. We did not try to
get out Of the contract on a technic-
atty, because IL is absolutely void.
We did not repudiate any contract
because there was never any legal
contract binding on the City to re-
pudiate. The franchise WAS void
from the beginning and gave TO US no
rights whatever as a franchise. The
only course the law permits US to
pursue when acting under void
franchise is 10 move and get out.
This is absolutely the only legal
course open to US. Any one can see
from the above figures that IL we I'M
dertake to operate under the present
rate we must soon 20 into bank
ruptcy
In fact, we cannot raise money on
a plant that is operating without a
franchise. 1t has no legal existence
and is known in law as a trespasser.
We are willing TO do anything we
can to assist the City in solving the
present difficulty and on account Of
the extreme high cost Of coal and
other materials we think il would be
unjust to both the purchaser Of a
franchise and to the City to fix il for
a long period Of time. In two years
time materials maybe much lower. or
they may be much higher No one
can tell We hope the City will be
able 20 sell a short term franchise
that will protect the City as well as
be fair to the purchaser. and in this
way permit the public to enjoy the
privilege Of using electricity at a
price equal 10 its cost Of production
with legitimate profit to those who
may furnish it, And when prices be-
come settled the City can sell Ion
ger term franchise. IL 1t so desires. at
such rates as il deems just and fair.
Adv. Basin Brothers.