Newport Council Digs In Against Electric Company's Meter Rates

ASK FOR FRANCHISE Northern Electric Co. Wants Steam Heating Rights. Means Better Electric Service. At the meeting of the town council, held Tuesday evening of this week, considerable time was taken up by the electric light controversy. There were present at roll call Mayor Appel, Councilmen Bennett, Caldwell and McDonald. After the reading of the minutes of the previous meeting and getting down to new business, a communication was received from Mr. Beckwith, superintendent of the Northern Electric Co., in which he accepted the meter rate for street lighting, all-night service, as specified in Ordinance No. 80, recently adopted by the council. This action of the electric company rather took the council by surprise. They were willing to make a contract on the flat-rate terms provided in the ordinance, but realized that to pay a meter rate of 15 cents per thousand for street lighting would be calculated to put the finances of the town on the wrong side of the balance sheet in a very short time. Finally it was agreed to receive and file the petition. Mr. Beckwith asked for immediate consideration of the proposition. He stated that the company was at present installing meters for private consumers and would do the same for the town; that they could not accept the flat rate, but were willing to do business on the meter rate according to the ordinance. Mr. Sherlock, city attorney, speaking for the council, said that the passing of the ordinance did not place the town under any obligation to make a contract and that the council would not accept any but the flat rate. Mr. Winston, of Spokane, one of the members of the Northern Electric Co., desired to be heard. He made a statement concerning the condition of the business of the company: that the plant had never paid a cent in dividends; on the contrary, it had been a continual drain on its owners; that the company would sell to the town for 75 cents on the dollar; that the company would only ask a high enough rate to permit it to continue business with the hope that the town would grow to a point where the business would be remunerative. The matter was left to rest for a time and other business of the evening taken up by the council. Bill of J. P. Berneck for work on Fourth Street grade, amounting to $1,148.30, was read and warrants ordered issued for that part of the amount due from the town. The clerk and city attorney were instructed to draw up the assessment roll for the payment of said grading. The work has been approved by the street committee. Ordinance No. 81, providing for the grading of Union Avenue from Fourth Street to Pine, came up for third reading and was adopted. Arrangements were made to have the street committee take the work in charge, have specifications prepared and advertise for bids. An ordinance was introduced granting to the Northern Electric Co., its heirs, assigns or successors a franchise to operate a steam heating plant within the city for a period of 25 years, and to lay the necessary pipes and conduits in the streets. It was given first and second reading and referred to the committee on judiciary and legislation. The Northern Electric Co. asks this franchise for the purpose of installing a central plant from which to furnish steam heat to the public. Systems of this kind are numerous in the East and give very satisfactory service. In connection with the plant the company expects to improve its electric service, and give at least 20-hour service, utilizing the exhaust steam from the electric plant for steam heating purposes. If the franchise is adopted the company would at once begin the installation of the system, with the hope of having it in operation by January. The bills of the electric company for service in street lighting for the months of June and July again came up for discussion. These bills had been cut by council because of failure to furnish all-night service. A proposition was made by Messrs. Winston and Beckwith that if the council would pay these bills in full, the company would furnish street lighting for the month of September, all night, for the sum of $83. This was accepted by the council. During the coming month an effort will be made by both parties to this controversy to get together on the question of rates. There is no disposition to fix the rate at a point which means loss to the company, but the council desires to get the best possible service at a low rate, and therefore an effort will be made to get at the cost of production and determine what is a fair rate.