The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1920-06-16
CITY FATHERS
FACING BOND
ISSUE FIGHT
Advocates Of Opposing Plans
Said To Be Lining Up for
Battle in Council Saving
Is Urged.
5 YEAR ISSUE ASKED

Consideration of two questions of
policy in the conduct of affairs Of the
Richmond Municipal electric plant has
apparently divided city officials into
two disputing factions.
One of these questions deals With
proposed plans for the establishment
of lighting system on the new Main
street bridge. The other pertains to
the method to be pursued in floating
bond issue of s275. 900 for the install
lation of a new 5000 b. p. turbine at
the plant, and for minor improve
ments.
Superintendent James Dillon has
proposed that the municipal plant in
stall bridge lighting system similar
to the system used in the lighting OF
the business district of Main street.
Mr. Dillon has estimated it is under
stood. that 1t would cost the plant
approximately $1,000 to place such
lights on the bridge.
Private Contract Is Advocated.
City officials who are opposed TO
the plan advocated by the plant sup
erintendent, hold TO the opinion that
bridge lighting system similar TO
| the Main street system. could be in.
contract for much less cost.
| Those officials who are opposed to
the Dillon plan, have estimated that
| bridge lights can be installed under
private contract for approximately
| S3,16S. and htey submit the following
| estimates:
| twenty-five posts at $50 per post.
! $3.50; 2,460 feet of cable at 65 cents
food, 1889; % Novalak units COM
plete with transformer. s649: 400
hours of labor at 60 cents an hour,
$3.50; total, s3,1.68.
Bond Issue Faces Storms.
The $275,OOO bond issue proposal
advocated by Harry Gilbert. president
of the board of public works, and
which has been submitted to council
in the form or an ordinance, promises
to have strenuous experience in the
! councilmaniC body.
A sturdy opposition to 1t appears
to be developing. The majority of
city officials recognize the need for
the installation of a modern high
power turbine at the plant SO that the
plants interests will be thoroughly
safeguarded.
What a number of city officials
actually oppose is the proposed long
term bond issue. The controversy is
sharply defined Under the provisions
of the pending ordinance period of
Is years would elapse before all of the
bonds matured, and they would bear
interest at the rate Of six per cent.
Interest Rate is High
The interest rate is high for a mu-
nicipal issue. two per cent more than
borne by the la st municipal light plant
bonds, issued several years ago to &C
quire the electric plant of the Rich
mond Light, Heat and Power COM
pany, but the fact is recognized that
under existing conditions a six per
cent rate is as low as could be OBJ
tanned.
City officials who oppose the pend
ing bond issue ordinance hold to the
opinion that the bonds should be
floated for a period of five years. after
which time the city would have the
option of retiring the entire issue at
its convenience.
Officials who support this plan de-
clare that it represents a saving of
between $4,000 and $50. 900 in inter-
est payments as against the bond is
sue project as outlined in the pending
ordinance.
1t has been figured that under the
plan advocated by Mr.. Gilbert the city
would pay out a total of approximate
ly $4,000 in interest during the Is
year issue period.
Claim Plan is Impossible
It is understood that advocates OF
the Gilbert bond issue plan declare
that if the bonds were issued for
period of only five years, with the city
holding the right to retire all or any
part of the issue after the expiration
of that period, it would be almost I'M
possible to dispose of the issue, as the
bonds would not be attractive to in
vestors. This assertion is disputed
by opponents of the pending bond is
sue ordinance.
Certain city officials have pointed
out that it will be a wise business pol
icy to float the new bonds under the
plan which represents the minimum
outlay of interest payments. for the
reason that the municipal plant is no
longer the bonanza il was for the first
few years following its merger with
the privately owned plant.
No Longer Has Big Income
Only a few days ago there was less
than 81 500 in the general fund of the
plant. and predictions are made that
the close of the current year will show
a very small plant profit, if any at all.
This condition, it is said, is the nat
ural result of the greatly increased
operating expenses, which continue a
steady increase, principally In the
items of coal and labor