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Show I The Electric Light Muddle 1 It will be remembered that dm- BBJ lng the early part of the year the BBl city council cndcavoied to open tic- BBl Rotations in the Tclltiridc Tower Co. BBl for the purchase of their Logan dlstrl- BBJ tuition system. On January 27 a prop- BBa ' ositlon was submitted to the com- BBj pany but owing to what arc said to be BBl unavailable causes, the Tcllurldc peo- BBJ I pic failed to answer until a few weeks BBJ ago. This reply was wholly unsatls- BBJ factory to the City of Logan and the BBJ i electric light committee. After con- BBJ sldcriug the Telluride's communlca- BBJ Lion the City FJectrlc Light Commit- BBJ tee's presented a lesolutlon to the BBJ city council at its last meeting. Tills BBJ resolution was laid over for consldera- BBJ tlon at the next tegular meeting. BBJ That the public may understand the BBJ situation Tiik Ilici'uiiMCAN liuie pre- BBJ sents the Tcllurlde communication BBJ and the city electric light committee's BBJ - resolution in full, only a synopsis of BBJ wlilch has been published licrctofoic: M ' City Resolution. H ) WIIKUKAS, llcfore Logan City en- BBJ tcred the electric llglitlng Meld It was BBJ given to understand by clicularlctteis BBJ sent among the people and by word of BBJ mouth that the Logan Light and BBJ ' Power company stood teady to sell Its BBJ distribution system to Logan City, and BBl. said company had a market for all the BBJ power it could generate and would BBJ. therefore willingly be relieved of the BBJ matter of dlsti Hinting its power, and, H WIIKUKAS, Logan City has made BBJ thiec oilers for the purchase of said BBJ distribution system tespectlvcly, $20,- BBJ 000, $15,000 and $28,000, (the last olTcr BBJ contemplating the Installation of a BBJ power unit by said company for the BBJ City). These olTcr all being l ejected BBJ and a counter otters Is made which BBJ asks the city to pay for the entire in- BBJ vestment made by said company with BBJ six per cent interest from beginning, BBJ less the net pioceedsof said dlrtrlbu- BBJ ' tlon system, as seen by the attached BBJ letter from .ludgc Story, and said cost BBJ to be ascertained from the company's BBJ old books. BBJ WIIKUKAS, To accept said offer BBJ would cost Logan City anpiolmately BBJ $32,000, whlchamouut the city neither BBJ has nor has power to borrow, and, H ( WIIKUKAS, The market value or BBJ said piopcrty based on the cost of the BBJ city's system is not worth more than BBJ - ten or twelve thousand dollars If it BBJ . . had the cntlte patronage and much BBJ less with a competitor in the Held. BBJ The poles of said company for the BBJ most part worn out, the wire Is small BBJ nnd much of It bare or paitly so. The BBJ transformers of sajd sjstom arc BBJ wiapped to 5,000 oltage and those of BBJ the city to (1,000 voltage so that said BBJ company's transformer and most all BBJ of its other piopcrty could not be used BBJ by Logan city, and, BBJ WIIKUKAS, Said company has BBJ never shown sluceiity in any attempt) BBJ to adjust the conditions now existing BBJ . but have lather delayed matters in BBJ giving the city any satisfaction, and, BBJ If WIIKUKAS. Said company nearly BBJ a year ago loweied the pilco of lights BBJ - from an exoibitant late chaiged BBJ wliilo the people were at their mercy BBJ to the picseut late of twenty cents, BBJ thereby Inviting a light, and, BBJ WIIKUKAS, Many of the cltlcns BBJ arc taking advantage of these low BBJ rates, thereby leaving a double burden BBJ of taxation and higher pticed lights BBJ upon those who ate loyal to the city BBJ plant; which Is Interpteted by the lat- BBJ tcr to be unfair and unjust, and only BBJ i Intended to cause the ruin of the city BBJ plant, and, BBJ WIIKUKAS, An additional assess- BBJ incut on the present rate of three BBJ mills would raise suillcicnt revenue to BBJ install a second power unit, pay the BBJ interest on the electric light bond and BBJ make it possible to seive the people BBJ with lights at ten cents per month a BBJ light, thetufoie, be It BBJ UKSOLVKI), That a tax of six mills BBJ be made for the coming year Instead BBJ of three mills, as at present, for clec- BBJ tiiu light pin poses to be applied as BBJ N near as practicable, as follows: BBJ Interest on u;,(KX) equals $2,400 BBJ Interest on 12,000 equals tiOO BBJ Interest on f.,(MK equals :t00 H (On second unit) $3,300 B Interest on Itouds $3,300 BBS Uunnlng Kxpcuscs 7,200 BBJ Telephone Account 2,500 BBJ Kxtended System 500 BBJ New Unit, freight, etc ii,n20 BBJ A six mill tax on $l,073,UOO $11,820 BBJ 5,000 lights at loo 0,000 BBJ Streetlights 3,300 H AND LTTItTIIKU UKSOLVKI), BBJ That the electric light committee be BBJ and hereby is authorized to lix the BBJ price of 10c. p, lights at anywhere be- BBJ. 'tween ten cents and thirty-lit c cents BBS- each mouth and adjust the price 'for BBS , power as occasion requires. BBl' NOTK:Thl5 increase of three BBS V i mills would call for $5,010 more than BBS . 1 the amount assessed the present year. I Bpjflak Provision Is made aboe to put $3,120 back Into the system. Four thousand lights at 33 l-3c. would cost the people $15900. The same at ten cents would cost the people $1,800. In other words the people would pay $."i,l)10 more In taxes than at present and in the difference between $15,100 to be paid at 33 l-3c. and $1,800 at ten cents they would save $ll,lll. This contemplates the city paying for the street lights Is at present but it also provides for the tlrst half of the expenses of the new unit and $1,500 for extension work being be-ing done. It alsO provides for the payment pay-ment of $2,500 to the Telephone company. com-pany. Judge Storey's Letter. The following is the letter fiom Judge Storey to which the above re-poit re-poit refers: Provo, Utah, March 20, 1W)J To the Honorable Mayor and City Council, Logan. Dear Sirs: The unfortunate delay In replying to your favor of January 27th last, has been occasioned by repeated re-peated absences of our General Manager Mana-ger from this State and prcssmeof other business Imperative requiring his attention. Ucccntly while at I'rovo and upon his being again suddenly sud-denly called away, ho requested the writer to reply to the propositions contained con-tained in the resolutions adopted on January 83th, 1005, by jour honorable body. For convenience, your llrst, second, third, sixth and seventh propositions, wlilch areas follows: "FIUST-That the Telluildc Power Pow-er company shall sell to Logan City Its entire distributing system within the limits of said city, Including all transformer, sub-stations, etc. "SKCONI)--Tlial the Telluildc Power company convey to Logan city the Card power site and all water rights connected therewith and all Interests In and concerning the same, with all land owned by said company immediately surrounding said site. "THIUD-That all the electric lighting business of said Logan City now controlled by said company be turned over to said city. "SIXTH That any and all franchises fran-chises for lighting purposes granted to or held by said Tcllurldc power company com-pany by Logan city be surrended to Logan city and made null and void, and If said company Is not now In control con-trol of all franchises heretofore granted by Logan city forelcctrlcllghtlng purposes pur-poses then said company shall proem e same for forfeiture and cancellation from the poison or company now holding hold-ing same. "SKVKNTII That said company i further agrees for itself, Us successors or assigns, not to again engage In the lighting business in Logan City. These may be giouped under one , head as they embrace the single subject sub-ject of purchasing our lighting system in Logan City. Ueplvlng to these live propositions as one. wo desire to say that on Sept. i 23rd, 1003, our gencial manager wtote the Hon. Lorenzo Hansen, then Mayor of Logan City, saying: "We have never knowingly entered a Held wheio our Industries were not earnestly desired by tho community. We weie labored with longand earn-ertly earn-ertly to Install a lighting system at Logan, and were granted liberal franchises fran-chises as an evidence of good faith on the part of the people who Invited us there. Followlngout thlssame principle, princi-ple, we will return the franchise granted and sell our Installation to the city of Logan for tho ampilnt expended ex-pended and six per cent Interest thereon, there-on, crediting the city on Its purchase thodlvldends which have been paid to tho stockholders, but we do not feel that, after acting In good faith and applying to an Industry the most careful care-ful engineering and economic business methods, that we should lose cither the principal Investment or small Intel In-tel est thereon. In at living at the amount, wo would eliminate all expenditure ex-penditure on our original power house In Logan canyon, as such expenditure is legitimately chargeable to tho present pre-sent power equipment wheio the same water right is used. I cannot say exactly ex-actly what the above amount would be. This could easily be arrived at by an examination of the records. It would, however, be so far in excess of $15,000, wlilch Is the amount I understand un-derstand was once suggested, that arrangements ar-rangements have appMi'd to me almost al-most hopeless. If, howover, you should think it desirable for us to take up negotiations on the terms indicated above, I would be pleased to arrange tho matter accordingly at any time convenient to you." Tho offer contained in that letter Includes a transfcr.to Logan City of all the franchises, property rights and privileges specitied In the lie resolutions resolu-tions above quoted, so far at least as The Tcllurlde Power company and Its prcdece.ssois-ln-lntcre.st have oyer owned oi controlled tho same. This company thinks that Ibis olfor was and Is eminently just nd fair and H Joes not see Its way clear to modify the proposition. In order that you may be more de-'flnltcly de-'flnltcly advised as to the amount mentioned men-tioned lu tho letter of our General Manager we have determined It to be approximately $35,000. This offer Is still open for acceptance by Logan City, payment therefor to be made In cash or paper bankable at par. Your next proposition Is: "FOl'UTH- That In case Logan City should need power to serve Its paltons from the time said business Is turned over to it, to the Installing of the second unit, that said Tcllurldc Power company will sell such power at the same rate per horse as shall be paid by said company to Logan City for power with which to pay for the property herein concerned." This Is a proposition that The Tell-urldn Tell-urldn Power company shall bind Itself to sell power to Logan City In the event the City shall need It without In any way binding Logan City to take any of the power or to pay therefor. The amount of electric energy which this company can produce Is not unlimited. un-limited. Tin's energy It sells and when it lias sold all it can produce it has nd more for sale. Consequently, If It-should bind Itself to supply Logan City with electric power as suggested, It must, In order to be able to comply with such agreement, at all times reserve re-serve from sale and keep on hand such an amount of power as you may require re-quire while, on the other hand, Logan City does not bind Itself to take or pay for any of the power so reserved and held for it. A moment's thought will convince you that this Is a wholly onesided one-sided proposition, requiring our company com-pany to hold for your use fiom three to live hundred horse power of electrical electri-cal energy for which we sire to receive no compensation whatever except In the event that you should suddenly decide you needed some Indefinite amount. While It Is probable that you would not call upon our company for any power, we would still be com-, polled to reserve It, lu order not to leave ourselves liable for failure to perforin our promise to furnish it In case you should need power. The next pioposltlon is: "FIFTH- That said company Install In-stall a unit In the power house of Logan Lo-gan Cltv In Logan canyon, consisting of new machinciy of live hundred hoise power, cither Wcstiiighouse or General Klcctrlc, as to the generator and cither Victor or Lcffcl as to manufacture or tho wheel, at the option of Logan City. To be completed com-pleted in overy way and subject to acceptance ac-ceptance by any competent engineer on whom both parties can agree. A Lombard governor to be Inltalled. That said machinery shall be installed ready for operation by September First, 1005." lu the picamble to your resolutions you say that you find this unit can be piolvlded at approximately $8,000,00, thereby doubling tho capacity of your plant. Wo do not concur In your llnal estimate of the ccst of this unit. Our experience Is that tho total costs of such installations arc usually greatly under-estimated, and wo venture to suggest that the hlstoryof the partial installation of your power plant made by vou to date Justllles our conclusion In any event, this company could not at the present time under any conditions condi-tions undertake to Install your second unit, as tho work It has In hand requites re-quites all the time of Its otllecrs and employes. Your resolutions contain a further pioposltlon that payment of the purchase pur-chase price, (a) of our lighting system In Logan City, (b)--of the power which you require us not to sell but to hold In lcsorve for tho use of Logan City, (c) of tho Installation of your second sec-ond unit shall bo made on the following follow-ing conditions: "FIUST - That the payment bo made In power from the new unit Installed. "SKCOND That two hundred horc power bo delivered at 0000 volt-ago volt-ago to said Tqllurlde Powercompany's power house at tho mouth of Logan canyon. "THIRD That tlu price allowed for said two hundred horse power shall bo at the rate of One Dollar and Fifty Cents ($1.50) per horso per month, and shall continue to bo so delivered de-livered oxcept said Logan City shall choose to pay the equivalent of two hundred horso power or Three Hundred Hun-dred ($300.00) per month In money Instead In-stead of power, "FOl'UTH That a rate of five per cent (5 per cent) Interest per annum shall be paid annually by Logan City on all unpaid part of the principal." This company has heretofore offered to purchase your surplus power at the price per horse power per month spec-lllcdlnyour spec-lllcdlnyour resolutions, subject only to the condition that the amount of power which you agree to sell and which this company agrees to purchase pur-chase should be furnished during the entire year, An Investigation of the power market of this State and of the expense of transmitting, distributing and marketing electric power willcon-vlnco willcon-vlnco you that tho price offered Is ful) value for your product. This Is especially es-pecially truo In view of the fact that our oiler Is to purchase and pay for power for twelve months per year when for at least seven months of that tlmo we, as well as yourself, have surplus sur-plus power which cannot bo utilized. Wo offer Jlo pay you this $18.00 per horso power per annum principally In order that we may have tho use of this power during the four to the months of low water when our output by reason of low water Is necessarily reduced. ;iy imposing the condition that tho power Is to bo furnished "from tho new unit installed" and especially by reserving the right not to deliver power "If Logan City shall , I'hooic to pay the equivalent of two hundred horse power or three hundred hund-red dollars ($300.00) per month in money Instead of power," youi proposition pro-position practically means that you will furnish us with no power during the periods pf low wator. the only tlmo when It Is of practical value to us and we can utlll.o It, and to require us to pay for power to bo furnished by you at tho flood water seasons when it Is of no value to cither of us. While for tho reasons stated The Tcllurlde Power company cannot agree to enter into a contract embodying all the terms contained In your resolutions, resolu-tions, It is sincerely desirous of ad-Justing ad-Justing on ! fair and just basis all matters wherefiom friction results between be-tween It and tho citizens of Logan City. To that end this company leaves open for the present Its offer to soil you Its lighting system and will be pleased, If you so desire, to dlcuss with you as a separatoand Independent Independ-ent proposition the purchase of all or any portion of your power output whenever you are prepared to sell during dur-ing the entlro year. Very respectfully yours, Tin: Tki.i,uuiok Powkic Co. lly Wm. Stouv, Chief Counsel. |