The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1922-10-24
VALUATION OF PLANT
AT HAGERSTOWN TO
BE REPORTED SOON
Especial to The Palladium)


HAGERSTOWN, Ind, Oct. ga
report by the appraisers of the local
municipal electric plant. establishing |
its valuation, is expected to be made
to the Wayne circuit court within the
next day or TWO. 1t has been reported
here that a valuation of approximately
$4,000 has been agreed upon.
1t is understood that the appraisers,
y. H. Johnson, William Bailey and
Clarence Kleinknecht, all of Richmond,
would have submitted their report
Monday had it not been for a disagree
ment over a technical question involv-
ing the valuation, which question, it is
said, has been referred to Judge Bond
for an opinion.
It is the general belief that as soon
as valuation for the plant has been
established the town board will adver-
tise for purchase offers for the prop
erty. And when this action is taken
it is probable that petition will be
circulated for special election to per-
NIT the taxpayers to determine what
disposition shall be made of the plant.
Not Profitable Investment
The plant has not been a profit
able investment for the town, and,
apparently, its efficiency has been re
duced to considerably below standard
through mismanagement For the
past two years, as town officials ex-
plain it, the affairs of the plant
have been brought to the point of
decentralization
Since Aug 9 of this year, three
restraining orders involving the adj
ministration of HagerstoBn's munic-
ipal enterprise have been issued and
two of these orders are still opera
tive. Robert Ashe, president of the
Liberty Light & Power company, who
contends that he has acquired a con-
tract to deliver current from Rich
nlond TO the corporation limits of
Hagerstown, has secured a restrain
ing order to prevent the town author1-
ties from interfering in any way
with rights he holds under contract.
And the town of Hagerstown holds
a restraining order which prohibits
Ashe from distributing his current
within the town limits.
Bond Cancels Lease
Last August the town board can
celled lease given to Robert Cass,
in November. 1920, and expiring,
November, 1923. The board justified
it's action with the charge that Cass
had violated various contract agrees
ments. Immediately the affairs of the
plant were involved in litigation. The
first court action was a temporary
restraining order against the cancel
lation of the Cass contract
1t is asserted by town officials that
Ashe. not Cass, was the moving spirit
behind the first injunction. In Septem-
Der a special judge upheld the towns
right to cancel the Cass contract by
dissolving the temporary restraining
order. However, during the life OF
the temporary injunction, Ashe had
rushed through a service line from
Richmond and was serving the town
with current from the Richmond mu-
nicipal plant
But when the temporary order
against the breaking of the Cass con-
tract was set aside the town board Sc
cured temporary order against the
distribution of current within the town
limits by Ashes company. The town
resumed operation of their plant La
ter, Ashe made the announcement
that in March of this year he had en-
tered into an agreement with Cass
whereby the Liberty Light and Power
company was to deliver current to the
corporation limits of Hagerstown for
a period of ten years, and he followed
up this statement by securing tenn
porary Injunction against interference
with his rights under that contract.
Never Been Notified
Hagerstown officials assert thai
they had never before been notified
of Ashes contract with Cass and they
also contend that inasmuch as Cass
only held a three-year lease on the
property he had no legal right to enter
into any agreement concerning it fol
a period of 10 years. One of the
towns legal representatives also has
made the statement that last July
four months after Ashe asserts he con
tracted with Cass, he (Ashe) made {
statement before town officials tina
he never met Cass
Representative of the town govern
ment assert there is no hidden motive
behind their opposition to the Ash
company bringing in an electric serv
ice without holding any contract 70
the same with the town. Apparent.
they are frankly skeptical concerning
the contract Ashe has said he entered
into with Cass last March If, how
ever, Ashe wants to make a bid TO
the purchase of the plant, after it
valuation has been established AM