The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1921-05-04
LIGHT PLANT
STATUS DUE
TO z CAUSES
Present Condition Caused by
Failure To Make Repairs in
Years Past and To Boost
Rates.
NO CAUSE FOR ALARM

The Misunderstanding that have
arisen over the management Of the
municipal electric light plant are not
Of immediate origin but are attribut-
able to long antecedent causes. two of
which are Of fundamental importance
in their bearing on the situation.
They are:
First. the failure to make necessary
repairs in years past, SO as to avert
a general collapse Of equipment at one
time.
Secondly, the failure to raise rates
sufficiently early so as to prevent the
occurrence Of a deficit.
If citizens will keep these two facts
in mind they will not be lost in the
maze OF accusations. charges and coun-
ter charges, and the conflict between
the beard Of works and the city coun-
Gil. All the blusterirg and noise &C.
pompanyirg the situation will lead
nowhere, shape no sound policy, and
bring nc tangible results.
Due to Politics.
The failure to make repairs and pro-
vide requirements at the plant. and
the neglect of the city officials to
raise rates in good time, can be traced
to the universal custom of politicians
to try to make a good showing for
their administration.
The appropriation of money for re-
nair and replacement purposes would
have expressed itself in reduced net
earnings something that politicians
feared, for a comparison with former
years naturally would not have been
favorable to the officials responsible
for the management
An increase in rates might have
evoked opposition from the consumers
feared because the voters might be
induced to vote against them at the
next election.
Private Management Policy.
In a privately owned plant neither
Of these considera tions would have
carried weight in the final decision.
Private management believes in
maintaining machinery at its highest
point of efficiency-possible only by
making repairs instantly and replac-
ing worn parts Immediately.
IN conformity with this policy, a
"Sh ihohdOCd VI ~ dtC
letting it's machinery deteriorate to
the point where thousands of dollars
are suddenly needed for repairs and
replacements.
AS soon as a privately managed util-
ty notices that the income from it's
established rates is approaching its ex-
renditures, it increases its rates so
that deficits may be avoided and stock
holders guaranteed a fair return on
the investment.
Results Of Neglect.
By neglectinG these two flndament-
al principles of sound management. the
municipal light plant found itself in a
critical condition.
A petition for an increase in rates
brought results but too late to avoid
the deficit. The employment of a con,
fultinr engineer. after a survey by
The citizens committee, necessitated
the expenditure of heavy sums of
money to pay for the repairs and re-
Placements, which should have been
distributed over period of many
years.
Both of these weaknesses in man.
agement have been remedied. Rates
IRE suffici mt and the present physical
condition Of the plant is the best it
mas hcen fOr many yedlS.
Citizens have no cause 20 be alarm.
- over the financial and physical con.
Gi'jOn of the plant.
Ii has taken heavy appropriations
10 bring about this condition. it is
r"ue. But If these rerairs and replace.
r;ents had been spread over the past
Years, &c thev should have been. their
cos. would have been apportioned over
of o,
time
II is folly 10 blame anv group OF
men for the condition. All city Of
Eciais for years past are equally cul
rabie for the condition which finally
demanded the application of heroic
treatment
Controversies Fruitless.
The lack of harmony between the
city council, the board of works. and
the management of tho plant aggra
Nated the situation without remedy
ing the two fundamental Weaknesses
which have been pointed out in the
foregoing
No privately owned utility could
long e"iSt if three contending groups
we're at loggerheads, and if it neg
)octed to make repairs constantly, and
TO provide for an adequate income
The municipal light plant, which
h"1oncs 10 the people and should stay
in heir ownership. is no plaything.
The fundamental principles o.
sound business must be present ir
its management. if it is to execute
The function for which it was estab
lished by the taxpayers Fighting be
tween branches of the municipal gov
ernmcnt inevitably will lead TO ruin
The policy of the city council to re
fuse TO make appropriations for re
pairs is folly. The process of rehabil
itating the plant has brought results
Competent persons say its physica
condition is better than for man,
years. The money that was not uset
for repairs in years past must nov
be applied.
No Private Ownership.
There is no occasion for indulsins
in pessimism, or of asserting that the
plant is ruined, or may pass into thu
hands of private ownership. The tax
payers fought long and hard to obtair
the municipal utility, and they will re
ain II.