Milford chronicle., 1952-01-04
Those FuVoFing The Rebuilding
Of Power Plant


OF Milford concerning the presen
Power Plant.
1t has been the contention NJ
many citizens over the years that
current can be manufactured at :
lower cost than which it is now
being purchased, and at the same
time pay and amortize an electric
plant and its equipment.
In support of this contention the
Fairbanks Morse Co. has come for
ward with a proposal to install
such equipment as will be needed
to supply the city's needs, payment
for which will be made out Of the
savings over and above the cost of
purchased current. This is not a
\ word-Of-mOuth proposition, but a
printed proposal, copies of which
will be made public at the Citizens
Meeting this Friday night; it is a
proposal to which the city solicit
tor, Tunnel and Tunnel, has CIV
en- approval as to it's legality, and
one in which no one has been able
to find the Often-referred-tO "jok-
ers" in the small print.
1t is emphatically stated at this
point that although the Fairbanks
Morse Co. has been the only one
so far to make a concrete offer,
before any contemplated contract
is signed for the manufacture of
current, competitive companies will
be asked for bids on specifications
Of this proposal, or for the sub
mission of alternative proposals
which they think may be more at
tractive to the City of Milford.
The Fairbanks Morse proposal.
in essence, is this: The City has
been paying, supposedly, $.O15 per
kilOwatt for its current delivered
to the city switchboard. Fairbanks
Morse proposes to deliver it at the
same cost as the city is presently
paying, and out of the difference
between this figure (.O15) and the
actual cost Of producing current, /
pay for the equipment which it in
stalls. There is no obligation for
the city to pay for the equipment I
except under these terms-that is. /
the actual savings. There are no
bonds to be issued by the city, and |
70 liens against city property other
than the actual equipment itself.
We quote in reference to this
statement the first sentence of
ga of the Fairbanks
Morse proposal: Notwithstanding
any other provision hereof, it is of
the essence of this agreement that
no Indebtedness or other Obliga-
ton or duty shall be created or in
ferred hereby which may require
payment from taxes or general
funds, or constitute an indebtedness
within the meaning of, or be in any
wise in cOntraventiOn of, the Con-
or Laws of the State of
Delaware" " Contained within this
proposal is the fact that payments
are not to be made through I'm.
creased City tax rates and/Or i'm.
creased electric rates. The Plant
committee has long been aware ,
nat street, sewer and other i'm
1rovements are needed in the City.
The Committee has had no inten-
ion of burdening taxpayers with
added expenses but has instead en-
1eavOred to put into operation a
plan whereby extra revenue can be
lad to bring about these improve ,
nents.
AS to the cost of the equipment: .
t has been loosely quoted around
he community that the cost will
'e $75O,O00, $1,000,0OO and even 81 !
100000. How these figures can be
,iven is beyond comprehension.
FOUR Plant Committee themselves
an give no definite figure, nor can !
he company with which negOtia-
ions have been made. Let it suffice 4
o say, for the present, that what
yer the cost (and there is reason s
o believe that it will not even e
lOsely apprOac ch the 100000 v
lark) it must, according to any U
ontract entered into, be paid from Il
he savings in the manufacture of 5
If Fairbanks Morse, or
ny other company with which the Il
Ity may contract, believe the saw a
lgs are sufficient, they must be fl
lfficient for them to receive pay p
tent for their equipment. We re-
eat, the City itself will not be OBJ "
gated n,
Another argument often advanc- OF
by opponents of the proposal is
So the equipment will pay for it.
by that time it will all
worn out and Wen be right back
here we started. Your plant COM
ittee feels that this is simply not
ne. 1t is hardly conceivable that.
re the mythical One-hoss-shay"
! the equipment will crumble to y
list just as the final payment for 81 81
is made. But even should, as %
me direly predict, we finally own -! ~
worn out plant, is not a worn It,
It plant of more value than a set
receipted bills from Delaware an
'wer and Light Co.? We feel that ye
is. pl
Moreover, we feel that during M
e period when we are paying for VI
e plant a good portion of the uI
)ney being spent will be spent at pc
me, employing the services of 10
cal citizens, instead of being al
allied in full to the home office in
Delaware Power and Light Co. til
rs fact has been sneered at by a ke
" who say that this is a bloated tlI
lse OF pride of ownership. We en-
Id no brief for production of re
rrent locally, except on its own
'rlts; but we believe that mem Iol
n should be made that an elec- ch
plant is in truth another small DO
lustry in the city which will add INT
the general prosperity of its citi- Se' e'
Is. Ell
We hope that the foregoing has yle
IN OF some value to the reader we
forming an opinion on the pres 70