The Butler County press. [volume], October 31, 1924, Image 5

About The Butler County press. [volume] (Hamilton, Ohio) 1900-1946

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By B. P. PRIMMER, Attorney
S. M. Goodman, in a speech before
the so-called citizens' committee
Thursday evening, October 25?, at the
Y. M. C. A., said, "We don't care
whether it's right or wrong, we're
going to put over the sale of the city
electric property November 4."
This proposed sale is a gold brick.
It is a shell game. The ordinance
only has this to say about street
lighting, "The bidder (the Union Gas
and Elective Company) will submit
a bid for the lighting of the streets
and public ways of Hamilton." It is
absolutely silent as to price, terms,
conditions, etc. That means that
while they would put the purchase
price under one shell and you look
for it there, however, it will be under
the other shell termed street light
ing. It is like putting the purchase
money into one end of a sack while
the other end is open. The sale of
the electric property on the terms
proposed is like stealing candy from
a baby.
All the many pages about sinking
fund and lower taxes devoted by
those attempting to put over the sale
can be reduced to these facts: If you
vote to sell you cannot pay off the
$650,000 electric bonds until they come
due, and you must pay the interest
on them until they come due it will
take all of the $600,000 cash now on
hand and what interest it may earn
and more to pay off the $650,000
electric bonds, so a vote to sell does
not help the sinking fund or lower
the taxes. The other electric light
bonds are not all due and cannot be
paid off until they come due. Also
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Electric Light Truths
1
Bryan in his great Chicago speech
in 1896 said, "The humblest citizen
in all the land when clad in the
armour of a righteous cause is strong
4tt- than all the hosts of error."
SAND-GRAVEL-CE^ENT
The Hamilton Gravel Co.
Phone 3708
COUNTRY" CLUB
DO vor WANT I.OW PUR FS?
—The most effective way to
bring them about is to trade
with the concern whose policy
it is to maintain them.
these bonds issued until 1921 bear
about 4% per cent interest. Would it
be good financing to' sell the electric
plant that is earning you now about
25 per cent on your investment to
pay off bonds that only bear 4V& per
cent to 6 per cent? Would the bank
ers call that good fianance? Would
they carry on business like that for
their banks? If you pay $57,000 per
year for street lighting and you re
ceived $565,000 for your electric
property your street lighting would
amount to more than 10 per cent on
the sale pi'ice. The profit on street
lighting to the U. G. & F„ Co. would
be over $40,000 per year and we would
be paying at the rate of about 6
cents per k.w. for street lighting.
On December 31, 1921, the outstand
ing electric light bonds amounted to
$283,000 the interest on these bonds
since that time would amount to
about $38,205, making a total bonds
and interest of $321,205. In three
years—1921, 1922 and 1923—there
was turned over to the sinking fund
trustees from earning and profits of
the electric light plant the following
sums, $20,000, $40,000 and $88,000,
or a total of $148,000. Now let us
do for the electric light plant what
they propose to do for the Union Gas
and Electric Company, add $57,000
per year for street lighting for three
years—1921, 1922, 1923—or $171,000,
which added to the $148,000 turned
over to the sinking fund trustees
would make $319,000 earnings and
profits for the electric plant in three
years, or within $2,205 of all the
bonds outstanding in 1921 plus the
interest on them since that time. The
money derived from $650,000 bonds is
sued since 1921 has not been used in
the electric plant.
Yet in the face of these facts some
of these people trying to put over the
BetU'i' Bread eannol
be baked regardless o
price! All loaves wa
paper wrapped. 1%
lb. size, 7«/2C.
1-lb. Loaf
III
ALL WOOL
O'COATS
Biggest selection and great
est values you have ever
seen. Every overcoat bears
the Union Label.
DUNLAP TAILORS
18 So. 3rd Street HAMILTON, OHIO
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sale, say the electric plant is losing
money. Your taxes will be higher if
you vote to sell. You will have less
money for other things.
Here are some of the arguments
they give you for selling: That the
plant is losing money that it is worn
out and obsolete. That you had bet
ter hurry up and sell before the U. G.
& E. backs down. If you were trying
to sell your property would you hand
out thfet kind of talk? Who is pay
ing for the large amount of literature
being sent out by mail urging the
sale? Who is paying the fabulous
sums being spent for newspaper ad
vertising and space? Who is paying
for the large number of solicitor and
canvassers out soliciting votes for the
sale? Why is it that the newspapers
will only carry the one side of the
issue and will not publish the facts
against the sale even as paid advei-
tisements Large sums of money are
being used to put over the sale. If
there was real merit and truth in their
side they would not be spending
money so lavishly and they would be
fair enough to let the people get both
sides of the issue. The many pages
of advertising and 300,000 pieces of
literature distributed, telling about
the bankruptcy of the city and the
condition of the sinking fund and-al
leged lower tax is not pertinent to
the issue. The sale would not give
you more money for other purposes,
but less money it would not lower
taxes but make them higher.
Judge Walter S. Harlan in deciding
Mr. Koehler's tax budget suit said,
"As to the reason which actuated the
legislature in passing this amendment
in 1923 the court is not advised. But
it would seem that at least a large
contributing influence was the lobby
of the privately owned utilities who
sought by the enactment of this stat
ute to completely hamstring cities
that owned utilities yielding profit
able revenues."
We can show that you should vote
"No" on the electric light ballot from
he mouths of some who are now ad
vocating the sale.
Froelich & Emery, in their first re
port, said, "The results of the city
electric service has been generally sat
isfactory the present physical con
dition of the power plant equipment
is good the equipment has been well
maintained the present electric dis
tribution system has been maintained
in good physical condition, and the
street lighting system is modern and
fficient and well designed."
Ex-Mayor Koehler in July, 1923, be
fore city council said, "The electric
light plant has not cost the tax pay
ers one single cent, produced a net
profit, took care of its own obliga
tions, sinking fund requirements and
nterest charges in addition to that
it has furnished, without cost to the
taxpayer, street lighting for which
no tax levy has been made."
In their first report the Toledo
engineers, Froelich & Emery, after
oing thoroughly over the books of
the electric department, said, "Dur
ing the period from January 1, 1908,
to December 31, 1921, the electric
plant turned over to the sinking fund
trustees $225,897.65 and spent $110,
147.85 out of the revenues for new
equipment and extensions to the dis
tribution system the value of the
street lighting for which payment was
not made from 1908 to 1921 is esti
mated at $441,155 the interest re
quirements on the bonded indebted
ness during that period was $150,
667, making the net operating profits
during that period, after deducting
interest requirements, $628,267.25.
Mayor Kelly in an article given out
by him July 1, 1924, said, "Had the
street lighting been paid for from the
time the plant was built, up until
the present time, there would have
been such an amount of revenue turn
ed over to the sinking fund trustees
to have cleared up the outstanding
debt."
In the pamphlet issued in the name
of The Taxpayers' League of Hamil
ton, alias The Unio* Gas and Elec
trie Company, it says, "There is no
question but what the owning of a
municipal plant has been a boon to
Hamilton. It has kept down the rates
during the past.
In conclusion, we have had a lower
price for electricity here because of
the city owned plant the city elec
tric plant has always paid its own
way and paid interest on the bonds
and the bonds themselves as they
came due, and has furnished the
street lighting free of charge to the
taxpayers. We have gone through
the pioneer stages in the production
and use of electricity, and have made
and saved the people money. We
should not now sell this valuable
property for a mere pittance and turn
it over to a monoply. The people
have voted bonds to "enlarge, im
prove, repair and extend" our plant
The bonds have been sold and more
than $600,000 is now on hand to do
the work. We can add equipment to
the present electric plant to meet our
needs for many years to come, we can
add pumps to the water works to be
run by electricity, and we can make
all the improvements needed to the
distribution system, and the total cost
will not exceed $400,000, thus having
more than $200,000 left to turn back
to the sinking fund trustees. It is
cheaper for us to run the water works
and electric plant together than to
sell the electric plant and run the
water works alone. The electric
plant in 1923 made an operating pro
fit of $145,000. Why does the U.
& E. want the electric plant? To
make money. Why should we keep
it? To save money.
Vote "No" ton the electric light
separate ballot*
THE BUTLER COUNTY PRESS
Toledo, Ohio, October 22, 1924.
To the Butler County Press:
An article appeared recently in the
Butler County Press, signed by Ben
jamin F. Primmer, who does not favor
the sale of the municipal electric dis
tribution system. ^Mr. Primmer has
made a statement that the elecfric
light plant has been operated at a
profit and furnished the street light
ing, estimated at $750,000, free of
charge to the taxpayers. This state
ment is not true.
The records of the electric light
department show that during the
years from 1905 to 1911 $40,626.47
was paid to the electric light depart
ment for street lighting. This amount
of money was collected by taxation
to pay for street lighting. The rec
ords of the plant prior to 1905 are not
available, but without a doubt a con
siderable amount was paid during the
first ten years of operation for street
lighting by taxation.
The statement that the plant has
always been able to pay its own wfay
is also untrue. The interest on the
bonded indebtelness of the electrici
light department from 1894 to 1910
was $75,239.08. During this period
not one cent was turned over by the
electric light department to the sink
ing fund trustees to meet this ex
pense. This also was collected by
taxation. During this same period
35,000 of bonds- became due. These
bonds were not paid but refunded by
other issues to reduce the burden of
taxation on the people of Hamilton.
Mr. Primmer quotes from the en
gineers' first report that the present
electric distribution system has been
maintained in good physical condition.
That this statement was made is true,
but Mr. Primmer endeavors to use
the engineers' report to state his posi
tion in this matter. He fails to state
that in the following paragraph on
the same^page of the engineers' report
the following statement is made:
Due to increased demands for elec
tric energy, the present system is in
adequate to meet the present and
future needs." He also fails to state
that the engineers estimated the
minimum cost of improving the elec
tric distribution system at that time
to be $105,770.
Statements also have been made
that the present generating plant can
be enlarged by spending $400,000.
This estimate provides only for the
installation of one 3000 k.w. gener
ating unit. The present requirements
of the city of Hamilton are nearly
3000 k.w. In the event of repairs to
this one 3000 k.w. unit, the old
equipment would have to be put into
service, and the energy which these
old, obsolete units could not generate
would have to be purchased, as is
now being done. Approximately
2,000,000 kilowatt hours of electric
energy had to be purchased during the
year of 1923.
If the city of Hamilton is going to
continue to generate its own current,
it must build a modern, up-to-date
plant which will meet the present and
future requirements of the city. The
estimate of the engineers still stands
that to put the electric plant and its
distribution system in a condition
that will meet the requirements, $896,
151 must be spent at a minimum.
The average sinking fund require
meiits in the next five years, if the
1,
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Froelich & Emery
On Sale of Electric
Distribution System
new plant Is built, will be $114,043.
The total amount of bonds that have
been retired and the interest that has
been paid since 1894 is $369,261.17.
This means that the new plant must
provide nearly one-third as much
money per year for bonded indebted
ness in the next five years as has
been met in the last thirty years.
We cannot recommend that the citi
zens of Hamilton risk an investment
of nearly a million dollars to save
approximately $10,000. It is not good
business judgment in the face of com
petition»that exists today. Very little
mismanagement on the part of con
stantly changing city administrations
would be sufficient to turn so small
a prospective profit into a tremen
dous loss.
We recommend the sale of the
electric distribution system and advise
the people of Hamilton to vots "Yes"
on November 4 on the referendum
ballot.
Although the United States su
preme court has repeatedly held that
a commodity is not in interstate .com-
1 Sr
Respectfully submitted,
THE FROELICH & EMER r'
ENGRG. CO.
By T. H. Froelich, President.
WOULD ENJOIN
LABOR FROM
CEASING WORK
Indianapolis.—A score of cut-stone
contracting firms in the Bedford
Bloomington limestone district of this
state have asked the federal district
court to enjoin members of the Jour
neymen Stone Cutters' Association
from ceasing work at anti-union
plants, and to enjoin officers of the
union from calling strikes at these
places.
The contractors also ask that the
unionists be enjoined from inducing
any one not to handle the non-union
product, and from even suggesting
that their product is non-union.
PET
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merce until it is actually placed in
transportation, the contractors insist
that a stoppage of work would be an
interference with interstate com
merce.
REPUBLICAN CANDIDATE FOR
Prosecuting Attorney
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POLITICAL ADVERTISEMENT
HENRY H. HAINES
REPUBLICAN
Candidate for
Common Pleas Judge
Because of his extensive experience and training Henry H.
Haines is eminently fitted for the office of Common Pleas
Judge.
for more than 20 years he has been a practicing attorney at
the Butler County Bar. He served as Referee for many years
under the National Bankruptcy Act, to which office he was ap
pointed by the United States District Judge. He decided all
Bankruptcy litigation arising in Butler County. He is a mem
ber of the law firm of Giffen and Haines.
Look for the name—
HENRY H. HAINES
Which appears on the separate Non-Partisan
Judicial Ballot
The Republican Executive
Committee of Butler County.
Mr. Boli is a candidate for his Second Term
and upon his record is deserving of it. He has
performed all the duties of his office in a faithful
and conscientious manner.
Matters now pending and many more to be
investigated are of the greatest importance to the
citizens of the county. Is it wise now to make a
change?
Continue a clean, honest, efficient, capable and
fearless administration of this important office.
R0YG.FITZ
Republican Candidate
FOR
RE-ELECTION to CONGRESS
Congressman Fitzgerald is the author of the Work
men's Compensation bill for the District of Columbia and
in addition to this great humanitarian measure, his reso
lution to prevent the exploitation of Child Labor in the
United States was the first introduced at the recent ses
sion of Congress. He has been characterized as one of
the hardest working members of the liouse of Repress!**
tatives.
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Washington.—The retail food in
dex, issued by the United States bu
reau o flabor statistics, shows an in
crease of about 2 per cent in the re
tail cost of food in September, 1924.
BOLI
-ELECT
Congressman
ELECTION, NOVEMBER 4, 1924,
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