The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1943-07-06
IRON OUT THE RUMPLES

this size. the discussion, pro and con, is an
indication of healthy interest in our eco
homie structure.
1t should be borne in mind that even
Representative Papy is in favor of the pur-
chase should it be made under a contract
that conserves the city's interest to the "
most, but there are several provisions to
which he objects in the present proposed
contract.
For instance, if you ride in your own
automobile, you don't pay taxi fare be-
cause the car belongs to you. yet the city.
should the purchase be concluded would
own the company. subject to its indebtdt-
edness, but would have to pay for the cleo
tricity it would USE And don't overlook the
fact that the owner of the car may still owe
several hundred dollars on it. so, in extend
ing the reasoning embodied in the contract.
he should pay fares TO the man or the COM
pany that holds the notes against his car.
Another apt illustration is that of man
who buys home with mortgage on it. and
is required to pay rent to the MORTGAGE.
A representative of the fiscal agents.
who are handling the proposal, asserts that
they have binding contract against the
city. Whether or not he is a lawyer. he
should know that no contract is binding if
it conflicts with the laws. constitutional "
otherwise, of a state or the nation.
The state supreme court said explicit
ly about the ordinance. through which the
purchase was to have been made. insofar
as il authorizes the city to acquire the con-
trolling capital stock of the Key West Flee
tric Company" violates the state cOnstitu-
tional prohibition against any county or city
becoming stakeholder in any company, as
ISOLATION or corporation.
So the city cOuncilmen need not enter
tain any fears that they are hOgtied by a
contract
But, aside from the conflicting opin-
ions. the big thing is that the acquisition
of the company would prove Of iEestimable
benefit to Key West. Many municipal utili-
ties throughout the country have relieved
the pressure on taxpayers pOcketboOks
through the reductions of rates for water
gas or electricity. Their success proves that
Key West could be successful too in owning
and operating the Key West Electric Com
pany.
1t should be borne in mind that the
Stone and Webster corporation, which owns
the local company is not selling because It
wants To SELL 1t is obliged TO take that
course in conformity with the federal Law
against holding companies. The Key West
Electric Company, during the lean years o!
the depression, was a paying concern, and
today its net earnings are high.
The Citizen believes that a basis car
be set up that will prove satisfactory to both
sides Of the question. PROFESSIONALLY, as
The Citizen pointed out at the time, Key
Westers generally should have been inform
ed about the meeting, with an adjournment
TO the unreasonable hour of o'clock in the
morning, that was held to consider the
adoption or the rejection of the proposed
contract proffered by representatives n
the fiscal agents. The agents even insisted
on naming the commission and so arrang-
ing their rotation in office they would have
been able to serve. should they have lived
long enough till the indebtedness would
have been liquidated.
As the city was buying the company.
the man To have done the appointing was
the mayor, with confirmation by the coun-
cilmen, if they saw fit. or rejection. if-the
appointees did not meet with their approval.
Key West should purchase the com
pany, and the best and quickest way 10 at
tain that end Is TO iron out the rumples in
the texture of the proposed contract.
In advocating the purchase OF the COM
pany. The Citizen does not mean the citv
must tie itself down to negotiating through
the John Nuveen company Let the city
buy TO its greatest advantage.