The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1921-08-06
PLANT (
IMPROVEMENT
MEETS SNAG
Failure To Sell Bonds Places
Municipal Institution In a
Delicate Position Work
Halted Temporarily.
MAY DELAY TURBINE

Failure to sell bonds of the mu-
nicipal electric light and power plant
has placed the local utility in delic-
ate position
improvements at the plant have
been temporarily halted until sale of
the S171,000 worth of securities re-
naming on the city's hands has been
made.
Efforts to dispose of the bonds thus
far have failed although small quanti-
ties have been sold over the counter
in the city controllers office
Installation of the 5000 X. W. tur-
bine which has been contracted for
from the Westinghouse company, will
be delayed unless some way out of
the difficulty is found Immediately,
city officials state.
Ready For Shipment.
The turbine is ready for shipment
from the plant and inquiries to the
board of public works have been made
relatives to the ability of the city to
pay for the equipment.
A representative of the Westing-
house company was in Richmond this
week investigating the financial status
of the plant and city. Just what will
be the outcome of this visit city offic-
ials are unable to state.
Every improvement that has been
made at the plant during the last nine
months has been directed to make
ready for the installation of the new
5000 k. W. turbine" Superintendent j.
P. Dillon stated Saturday. Every
thing is now ready for the new equip
ment, which will put the plant in the
best condition possible-all but the
money"
Installation Imperative.
Mr.. Dillon and Engineer Weldon
stated that the installation of the new
turbine was imperative and that it
must be ready to carry its load before
fall. They were stated freely that un-
less the turbine was installed by that
time some classes of consumers would
have to be cut out.
The plant is now carrying a capacity
load on several days week. This
cannot be continued indefinitely, they
state.
| Plant officials predict that IL they
are unable to take care of the demands
made on them this fall and winter,
that outside agents will be allowed to
run lines into this city and eventually
prove disastrous to the municipal
plant.
Good Investments
The bonds are considered good in
vestments by most financiers. The
chief objection that has been made to
them is the fact that they have five.
year retirement clause, which makes
1t optional with the city whether they
will continue them over the full length
of time allowed or call them in.
This clause is inserted. officials
state, because the returns on the plant
within the next few years should be
such that it would be possible to re
tire the bonds at an early date.
Six Per Cent Limit
State statutes prevent the city from
offering more than six per cent or
the bonds and likewise prevents any
premiums for sale. Numerous attor
neys have advised clients to buy the
bonds in small quantities as an in
vestment. and have pronounced the
issue legal in every respect. it is said
Small sales over the counter are
not progressing fast enough to taks
care of the bills that come In will
the installation of the turbine. Off
cials state.
Efforts to interest local banks prob
ably will be made, it is announced
1t is expected that this may pave the
way out of the present situation