The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1920-09-13
CITY PLANS BOND
ISSUE OF $175,000
FOR LIGHT PLANT


Following an executive session the
board of public works held Monday
with Mayor w. w. Zimmerman and
City Attorney Will Keller, the board
went into open session and adopted a
motion made by Mr.. Peltz that the
city attorney be instructed to take the
necessary action for the sale Of bonds
of the Richmond Municipal electric
plant for the purpose of providing for
necessary plant improvements. The
improvement principally contemplated
is a 5000 XIV. turbine unit.
1t is understood that the city admin
istration proposes to make an effort
to float a $175,000 bond issue for the
municipal plant. This amount has
been appropriated by city council The
mayor and the board has advocated a
$225 200 bond issue, claiming that
SITS 900 is not sufficient to meet the
cost of the proposed improvements,
but council has flatly refused to ap-
propriate more than S175,000.
Don't Expect Any Bids
Mayor Zimmerman expressed the
opinion that the city might not be able
to find market for the proposed bond
issue. Last week board members
stated their belief that as $175,000 was
considerably less than the anticipated
cost of the proposed new turbine unit
that in event bids were called for
with only $175,O00 available, there
would be no bids submitted.
Wilfred Jessup, as attorney for GER
tain property owners in the suburban
districts of this city, filed a written
protest with the board Monday
against the electric rates Of the Rich
mond Municipal plant which have
been established for these districts.
Mr.. Jessup expressed the opinion
that residents Of territory Immediately
contiguous to Richmond had been
overlooked both by the city and the
state public utilities commission in the
establishment of new rates for the
municipal plant.
He pointed out that suburban resi-
dents are now required to pay the
rural service charge, which carries a
minimum rate of $3.50 a month, or
$3.50 more than the minimum rate for
the city. Mr. Jessup asserts that this
rate Is an increase of upward 100 per
cent in many instances and is prohibi-
tory in some cases.
Boundaries Logical Place.
The communication was referred to
Municipal plant, who stated that when
the new rates were established the
state commission ruled that some ar
bitrary line had to be drawn in the
! establishment of rates for people liv-
| ing within the city and those living
outside the city and that the commits
sion had decided that the city's boun-
radies were the most logical places
for the drawing of such a line.
| Mr.. Dillon also pointed out that
prior to July I, this year, there had
never been a rural rate for the munich
| pal plant, and that people living out
side the city received the same rates
at Richmond citizens, Notwithstanding
the fact that this was a discrimination
against Richmond taxpayers.
Mr.. Dillon also asserted that the
existing minimum rate of $3.50 for
patrons of the plant living outside the
city was less than the minimum charge
levied by the Connersville electric
| plant against residents of Conners
vile.
Suggest They Join City.
| Certain city officials made the sug
gestion that if the residents of Earl
ham Heights, Benton Heights, Spring
! Grove, Beallview and other suburbs OF
| Richmond wanted to enjoy the same
benefits as are enjoyed by residents
of Richmond, that they should take
steps to have the districts in which
! they reside taken into the city.
! Two bids for the construction OF
new walls for the boiler house at the
Richmond Municipal plant were re
ceived by the board, but the board de
! cided to postpone for a brief time the
awarding of the contract. The bids
were: Burdsall and Willett, 1854, ol
cost plus 10 per cent profit; William
F. Hendricks, $9,775.97, or cost plus
10 per cent profit.