Chicago Capital Asks Newport for a 50-Year Power Franchise

A consolidation involving millions of dollars, and the taking over of all the improvements and important light and power plants in Northern Idaho, together with several plants in Washington and Montana, has been consummated by Byllesby Co., of Chicago, one of the largest electrical and bond houses in the country.

The plans, which when consummated include the acquiring of numerous riparian and water rights on Lightning Creek and along the Moyie and Clark’s Fork rivers, will develop an immense water and light power sufficient to supply every town in the district.

Through the efforts of a Spokane man, Jerome L. Drumheller, who has interested the eastern capitalists in the undertaking, the Pend Oreille Electric Light Co., of Sandpoint; the Northern Electric Co., of Newport; the Flathead Valley Water Power Co., of Kalispell, Mont., together with a plant at Whitefish, Mont., in addition to several others, have been secured, and the new company will be known as the Northern Idaho and Montana Electric Light Co.

C. E. Osthoff, of Chicago, an expert engineer, who represents the eastern people, says: “We have perfected plans whereby we expect to develop an immense water power and light system. A $10,000,000 bond issue has been subscribed and will be taken up entirely by Byllesby Co., who are large bond sellers, as well as electrical engineers of Chicago. We will improve all of the plants as fast as possible, and expect to keep pace with the rapidly growing country in which the power will be used. Extensive improvements are contemplated which I do not wish to discuss at this time, but we expect to develop and acquire additional properties soon, and will be able to develop an immense water and electric power.”

Representatives of the company, Messrs. C. E. Osthoff, civil engineer for Byllesby Co., and H. H. Jones, general manager of the proposition for this territory, have been in Newport this week looking over the ground and preparing to submit to the council a proposal for an extension of fifty years of the franchise under which the Northern Electric Co. of this city is now operating. The proposed ordinance will be submitted to the city council at its meeting next Tuesday evening and is published in this week’s Miner.

These gentlemen state that arrangements are now being perfected to improve the local service and that work will be started on same within ten days. They hope to have 24 hour light and power service inaugurated by June 1st. They estimate that it will require an expenditure of at least eighty-five thousand dollars to complete the improvements that they contemplate in Newport and say that while the present size of the town and its consumption of light and power would not warrant this large expenditure it is their belief that the town will grow to the point where it will be warranted and that the power and light service they expect to install will be a large factor in such growth.

The gentlemen of the council are already familiarizing themselves with the features of the proposition and will doubtless give it their best attention to the end that the best interests of the town at present and in the future may be conserved.