Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1928-10-26
Plant Sale Would Be
Bad Business OPP
ponents State In Cit
liens Meeting


HARLINGEN, Oct. 26.-The first
csnnonade against the proposed sale
of the Harlingen water and light
plant to the Central Power & Light
company was loosed here Thursday
night, before a meeting called by the
Harlingen Municipal League. I. E.
Harwell, secretary Of the league,
David z. Traxler, and Judge J. c.
Myrick were the three speakers to
oppose the sale Of the plant.
The arguments against the sale
conferred mainly around statements
that it would be bad business. that
Harlingen would lose her principal
asset, that the city would have TO pay
8 per cent on the sale price of the
plant, and it made no difference 70
the power company how large that
sale price was, and that the city
would lose the power TO regulate
rates.
The last statement brought forth,
at the conclusion Of the meeting, q
denial from Claude Carter tnat
courts would throw out rate con-
tracts, on the ground that, IL they
failed, according TO company figures,
to show a reasonable profit, that they
were confiscatory. He vas drowned
in a roar OF boos and the audience
walked out while he was trying to
talk, after Judge Myrick had arisen
in reply to his question, and asked
him if courts had not held that rate
contracts of public utilities, where
the utilities did not show a profit,
were confiscatory, and hence illegal.
Some of the statements brought
out at the meeting summed up were
these:
That the Central Power & Light
company, If it spreads the price Of
the plant here out over the entire
and pay three, four or five million
for the plant there, and then spread
that cost out over the Valley, and
Harlingen people will pay part Of 1t.
That in Weslaco and Edinburg
there are proposals TO start munich
pal plants again in competition with
the Cent.al Power & Light company.
That the Harlingen plant has in
creased in value $1,000 a day since
the Central Power & Light company
made its last offer, according TO the
offer Of the company.
That, based on the rate Of growth
during the past two years, the plant
in the next few years should be
worth five million dollars or more.
That il it will be worth that much
in the near future, its potential value
to Harlingen is equal to that now.
Harwell opened the meeting, and
during the course of his talk read
messages from cities which WI their
water and light plants urging Har-
lingen not TO sell. He characterized
the cut in rates by the Central Power
& Light company announced recent
ly as only an inducement TO get Har-
lingen people to vote for the sale,
and denied the statement that the
power company could produce cleo
tricity cheaper than Harlingen, say
ing that if il could ii would be only
a fraction of a cent, and would not
reflect in the price paid by the con-
sumner.
He declared that the Central Power
& Light company several years ago
built an ice plant in Harrington, and
cut the rate 10 80 cents a hundred
TO force competition out of business,
and then raised the rate TO so cents.
This is a little trick we can look
for. and it can be easily handled"
he said.
Traxler dwelt particularly on the
expected increase in population of
Harrington. and hence the increasing
value of the plant. He said he did
not believe the tax rate would be cut
IL the plant is sold. IF the plant IL
such a loss. why does Mr.. insult want
it?" he said. He urged putting off
the sale question until next year. and
then having competitive bidding
for it.
Judge Myrick, the last speaker.
said that he would talk on general
principles. He mentioned buying a
house and renting it back. and said
that he knew hundreds of persons
who would pay any price, 81 600, 900
for a $500 house, if they had a guar
antee of renting il back TO the for
mer owner at s per cent on the in