Reveille
April
Special Edition
1999
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Reveille April |
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Published by International Press Service
for the Veterans for Good Government
Box 4072, Chattanooga, TN 37405
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TAWC running ‘scare campaign’ |
Capital gains tax
savings for water company
may be an underlying factor in negotiations
In the 15th Century a fellow named Niccolo Machiavelli from Florence, Italy, wrote the handbook for cold political power, how to divide and conquer, how to use misinformation. It has been a guide for the ambitious without morals since, those who believe the end justifies the means and there are no rules of integrity. Adolph Hitler read the book. So did Joe Stalin and many, many others.
The Tennessee American Water Company managers must have a copy on their shelf.
Their campaign to prevent the City of Chattanooga from purchasing the water company under imminent domain is a masterpiece of propaganda. They have orchestrated letters to the editor, harassing phone calls to city officials, spreading half truths.
The mayor and City Council members must be commended for their courage in standing up against this barrage. They took the course they think best for Chattanooga now and in the future. And they've stuck by their guns.
Much has been made of a report commissioned in preparation of a buyout of the waterworks, that this hasn't been turned over to TAWC. No one expecting court action gives his opponent all his information prior to the hearing. All this will come out in the course of litigation. No one makes an issue of the company lawyers not opening its files for the city.
TAWC conducted a scare campaign telling the union members they would suffer under city management, that their benefits and actual jobs were in jeopardy. They want workers to believe they are better off working for a stockholder in Hong Kong or Tokyo than for the government they elected. The local worker can walk into City Council or show support or displeasure at the ballot box. He has no friend in Baltimore in the office of a water company operating all across the country.
Union members were recently told my their leaders that, while TAWC originally entertained the idea of a uncontested sale, they now have an ulterior motive for pushing to a forced sale. They say an outright sale leaves heavy tax liabilities. A resisted sale saves them on capital gains. TAWC doesn't broadcast.
Chattanooga is one of the few cities which doesn't own its water company. It's surprising no one initiated this action years ago--except they avoided the same heat city officials now have to take. It's on TAWC's speculation list to sell Chattanooga water to Atlanta and other cities. If there is a profit, which there obviously is, why shouldn't the people of Chattanooga enjoy it instead of stockholders around the world?
It's not a matter of the city taking over a private business such as a tire store or a machine shop. It's a matter of the city taking control of a monopolistic utility, where no competition is present. The city answers to the people. TAWC answers to its stockholders in the profit and loss column.
A fair price will be given for the purchase and TAWC will walk out smelling like a rose. Consider the possibility that TAWC's fight to keep the water rights isn't because they love Chattanooga or their union members, that instead they want to save on capital gains taxes.
Some shout for a special ballot. If City Council put every agenda for a vote, nothing would get done. They have looked soberly at the situation and decided this is best. Instead of people throwing insults at them they should give them cheers. Their decision will be enjoyed by generations to come.
Committee formed to provide information
combating water company misinformation
A group of volunteers have stepped forward to work toward getting the word out to the public and overcome the negative information spread by the Tennessee American Water Company.
The Citizens Water Committee has as its objective to be “A Citizens Advocacy Group to Promote Local Control of Chattanooga’s Water Resources.” Membership ranges into all levels of business leadership to just those who believe in the change.
Heading up the group as co-chairmen are Pat Brock, JoAnne H. Favors and Olan Mills II.
Lending their names to support the mayor and City Council are (in alphabetical order): Roy Anderson, Sandra Bowers, Janice Boydston, Pete Chaney, Al Chapman, Carter Clements, Herb Cohn, Pam Collins, Allen Corey, Stephanie Crowe, Danny Daniel, Jackie Davidson, Betty and Harry Dolfi, Charlotte Durdin, JoAnn Forman, John Foy, Todd Gardenshire, Bob Graham, Zan Guerry, Margaret Hardin, Frank Harris, Tim Hennen, Anne Hennis, Jean Hester, Katherine Holland, Eddie Holmes, Jimmy Hudson, James Hunt, Rose Ingle, Bess Ingram, Carolyn Jackson, Jon Keene, Jim Kennedy Jr., Paul Lappin, Grant Law, Tim Lawson, Warren Logan Jr., Gerald Mason, Ben Miller, James Mizell, Todd Moreland, Joe Preful, Scott L. Probasco Jr., Hugh Reece, Alan Richardson, Kurt Schmissrauter, W.L. Schultz, Charles Shaw Jr., Frank Schriner, Fred Skillern, Daphne Sloan, Sam Smartt, Gordon Street, Stanley Thurmond, Frank Varallo, Robert Kirk Walker, John Weathers and Harold Wilson.
Veterans for Good Government endorses the purchase of the water utility by the City of Chattanooga. This is a step toward continuing the progress and prosperity the city has enjoyed.
All issues considered, this is undoubtedly the course to follow.
The Tennessee American Water Company has been paying tax on a value set at $66-million. Now they think their value approaches possible billions. Wonder if they would like to pay back taxes on their own estimated value?
Estimates by the city show the people of Chattanooga would have realized a 25 percent savings on water bills if the utility had been city owned.
And the cash flow that leaves the city and county for water bills comes to 26 cents on every dollar.
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One of the most charismatic civic leaders in Chattanooga and Hamilton County, Dalton Roberts has worked as a musician in honky tonks, served as County Manger and held the office as Hamilton County's first County executive. Among his other talents is writing. The following apeared as his weekly column in the Chattanooga Times-Free Press on Apr. 20, 1999.
Water tide may be turning
By Dalton Roberts
City fathers and mothers are perking up these days. There is an observable swing of public opinion supporting their plan to acquire the Tennessee American Water Company. It may not be a monsoon but the tide appears to be turning.
It was predictable from the start. The antis always come out on any issue with more bombast and fury. But the hotter the fury, the quicker the exhaustion of energy. On any issue there is a limit to the amount of energy you can pump into it.
The biggest TAWC energy generator was the pro-private enterprise argument. Chattanooga is about as pro-business as any town. Saying "government shouldn't compete with private enterprise" is supposed to end any debate about any government buying a business.
Problem is, TAWC has never competed with anyone. It is a monopoly. Who better to remind us of this than a businessman like Pat Brock who gathered with a large number of city supporters in a news conference at city hall. His persuasive statement was supported by other respected businessmen like Olan Mills, Zan Guerry, Frank Varallo, Joe Prebul and several who did not speak to the media.
We all know non-competition with free enterprise is a sacred cow and this one grazed with gusto before the businessmen on the city's support committee gave it a good veterinary examination. It turned out to be mostly bull.
Councilwoman Mai Bell Hurley really drove this point home in a speech before a community group. She said, "I know of no other manufacturing process that pays nothing for its raw materials and distributes its products along public rights of way with no franchise and no fees."
TAWC publicists called the support committee "a public relations stunt." Some stunt. Look at the list of members and you'll see a powerful cross-section of respected activists and leaders from all walks of life.
Note the increase in pro-city letters to the editors. One especially effective one said Chattanooga wanted a strong businessman as mayor and they got one. On the water issue, it added, the business he is advancing is the people's business.
Pete Chaney, colorful editor of several publications for veterans, charged that TAWC was using scare tactics with their union members, telling them their benefits and jobs are in jeopardy. "They want workers to believe they are better off working for a stockholder in Hong Kong than for a government they elected," he said.
Councilwoman Hurley revealed that the city offered TAWC a negotiated settlement which would have allowed their continued management and they refused. Chaney thinks they refused because "an outright sale leaves heavy tax liabilities (while) a resisted sale saves them on capital gains." I am not a tax expert but now that Chaney has placed this interesting observation on the table, TAWC's response will be equally interesting.
Having handled my share of hot political potatoes, I am impressed with the mayor's calm hand under pressure. Many carefully stacked truck loads of criticism and abuse have been dumped on him since this issue hit the table. Instead of lashing out, he has patiently repeated the fundamental reasons for his actions. Even the most complex issues shake down to a few bedrock basics and he has stayed with those from the beginning.
Equally impressive is the council's resolve to stick by its original vote. Sometimes important local issues get sidetracked by the dissention inherent in a body of people with different agendas. Council members have kept their hands to the plow on this one despite the harshness of the criticism. .
Today most politicians won't stick their nose above the horizon on any issue without a poll telling them it's a winner. The politicians we remember with respect are those who had the guts to tell us things we didn't always want to hear. Not the poll takers, but the risk takers, the foundation shakers.
In good times we tolerate the timid who must poke a thermometer in every issue before shifting their little lily-livered brains into gear. But when hard times come, we want the truth and have no time for those who are afraid to tell it.
One of these days the good times will cease to roll. We will have to go full-blast after jobs in a more competitive national atmosphere, like we did in the seventies and eighties. When that day comes -- and it will come -- ownership of our water will be an important asset. The present city leadership will be remembered with respect and appreciation.
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A member of the TAWC union complained that DON EAVES wouldn’t talk to him about the buyout. No City Council member is more open to the people, or more vocal in his opinion than “Honest Abe” Eaves. But can you imagine getting phone calls at home at all hours of the night? Don said he only asked if the caller worked for the water company. He had a right to know who was calling and, whether or not the caller might be unduly influenced.
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The city is going to buy the water utility. No question. Just a matter of how much grief TAWC wants to cause the people.
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Want to show support for city ownership of its water utility? You can by filling out the coupon below and mailing it to:
Citizens Water Committee, 430 Chestnut St., Fourth Floor, Chattanooga, TN 37402
Attn: Gari Cruze
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