The Providence news. (Providence [R.I.]) 1891-1906, 1901-05-20
MUNICIPAL
OWNERSHIP.
Chlcago's Electric Plant Has
Mada Large Profits.
IN OPERATION THIRTEEN YEARS
Nearly S200ro0 Saved Last Year In
Two Years Frat Worth Over n Million
viii Have Paid for Itself.
IN OPERATION THIRTEEN YEARS

Chicago, May 2o.--opponents OF the mu-
nicipal ownership of public utilities have
relied az their strongest argument upon
the assertion that no matter how aHur-
ing the estimates OF financial profit
might be of such a system. actual fig
I lres always show I losing result.
Municipal management. they -asserL- IL
never as effective as that OF private indi-
fiduals or corpora tions: political iobbery
gets I'm, and when the balance sheet Is
made mp II IS bound 10 show that the
public service done BY public officials is
I not as economical as when the same
work is done by private enterprise
These arguments have recently receiv-
I'd serious setback through the report
~ Edward B Ellicott, city electrician OF
Chicago, setting forth i'm detail the fnan-
ial results OF lighting the streets OF Chi
cago under municipal management for
be last thirteen years.
PROFITABLE OUT THERE.
No one ever asserts that the municipal
government in Chicago is OF an ideal
character or that results which can be
obtained In that city are impossible else
where.
IL Is interesting, therefore, 10 note that
ne figures ia MIR. Elicotts report show
not only that the work Of lighting the
streets OF Chicago has been done at a
tost far below that which would have
been charged by private contractors. but
hat the saving has been so great that
"a two years more the city will own free
and clear a lighting plant worth at the
smallest calculation nearly million
iollars.
The city has never issued any bonds
IN account OF it's lighting plant nor in
'urred any other form Of indebtedness.
Each year every dollar that was needed
Tor building or increasing the plant or |
paying the running expenses has been !
pat In the budget and paid out OF the |
annual tax levy.
Year by year these payments have been |
looted mp, and against this total Mr. FL /
icott has charged the cost OF the lights |
furnished IL they had been contracted /
or and the interest allowed at iia per /
'ent a year I'm making up general bal
.nce sheet on the excess of these pay
nents which represented the cost OF the |
liant.
The amount expended for renewals of
liant, Mr.. Eliicott says. have more than
,cpt pace with the natural deterioration
nd the entire OUTFIT Is now I'm better CON
itlon than IL ever was before.
The result of the last years operation
vas 10 effect saving OF Sl92. 600 on what
ented lamps would have cost, and fig
red on this basis the plant as a 10 per
ent investment. would be worth 81 OPS
10. In his calculations Mr. Ellcott car
les IL at only 1921 .000. although IL actual |
= inventories 81 .350.O O00
During the year l900 Mr. Ellicott
lys the city operated an average OF
t1 arc lamps at a total cost OF S265 l29.
hich includes an SlS.7j0 interest charge
nd over $4,000 on account OF deprecia-
on, while to have rented these lights at
le lowest price quoted TO the city would
ave cost A5SG2l.
PLANTS PAID FOR is SAVINGS.
In two years more the city Of Chicago
lould not owe itself one cent on ac-
lunt OF the plants that Il has built on
,luable property il has acquired I'm con :
ructing the plants, for IL will have
we'd enough over and above what il e
ould have paid for rented lights to !,
lid and operate the plants as they now q
list.
This is a practical business statement
the results obtained by the city. and 4,
ould receive more consideration than I
g theoretical statements of private :
operations. which have never In a sin -
e instance published the figures show
9 the itemized cost OF producing an arc II
mt under private control" -
The plants which the city OF Chicago
$ thus nearly saved out OF it's munici- Il
J lighting consists OF more than 195
les OF conduit and cable system. three u
wer plants, with a capacity for fur
'hing 400 lights; 1000 arc lamps and ty