Hutchinson gazette., 1901-11-21
City Ownership.

City Ownership
This Office is In receipt Of a tabu-
lated statement which was furnished
by parties interested In this city in
having the city purchase the city
water and light plant, relative to the
cost of such plants In other cities In
the United States which have ac-
qulred title to the plants, either by
purchase or by building their own,
The information In this table Is fur
nished by u bureau OF information
whose business 1t is TO gather such
statistics, upon much the same plan
as Dunn and Badstreet operate, and
various other institutions that gather
information pertaining to their par
tlcular trade, or industry, In this
table are listed flfty-seyen different
towns In twenty different states. The
largest Of the towns Is OF about II, 600
population with watcr works costing
the city approximately 5000, 900 and a
light plant costing nearly 100000,
The smallest Is a town Of 8, 35i pop
ulatlon and n water plant costing
S25S, ,OCO. The average size Of the
ilfty-seyen cities enumerated Is 10, 704,
and the cost average Of the water
works In each town Is $347, S45 10. The
average cost Of the light plant In
twenty-sevcn towns scattered over
twenty states Is given at $751; ,000.,
the towns averaging 10000 popula-
tlon. These seem like high figures
for the cost Of such plants, They are
undoubtedly much more than the
city Of Hutchinson will be willing to
pay for plant here, But however,
the figures In this information giving
gross annual revenue, operating and
maintaining expenses and net profits
for the years Of 1899 and 1900 in thirty
six of these towns with an average
population Of $500 show net profits
ranging all the way from 100000
to Sll, 10000. The city showing only
$1,000 in net profits Is Newton, Kan
sas, which has population Of con-
slderably less than Hutchlnsodn, 1t
being only 6,0l7, and with the gross
annual earninsg only $l5,OOO.0O. EN-
p)ria, a little smaller than Hutchlu-
son, population 1923 made $14, 900. 90
in net profits on her water works,
with the gross earnings $40, 10000
According to the figures here shown
the average gross earnings on the wa
ter works Of these towns was $780,
243.22, The average cost Of operation
and maintainance was 81, ,OO5.25. The
average net annual profits were $685.
253.1l.
The cost Of the waterworks plant
in Newton is given at $21O, 900 and in
Emporia at $2l2, 200. The whole wa
ter, light, and gas plant Of this city
has been listed for taxation at only
from thirty-iive to fifty thousand dol
lars, which being considered one-third
of actual value would make the esti-
mate Of the company on it for pur-
poses Of taxation only from 100000
to $4,000 If they would sell at
those figures it is needless to say that
the city would take the plant, But
the chairman Of the water and light
committee. Stated that in their nego-
tiatlons with the representatives Of
the company In trying to get them to
set knock-down price, they were
very reluctant to do so. In fact would
not do so. But finally said they would
take $400, 100000 There Is cOnsldera-
BILE difference between that amount
and the price at which 1t was listed
for taxation, but they admitted the
plant is not now worth those figures.
They did argue, however, that in
course of time before the lapse Of
their franchise the plant would grow
into that value.
The belief Of those Of the council and
others who have examined most care
fully into the matter, is that the plant
is worth at reasonable figure,
about or somewhere in the range of
1925, ,OOO What they will think, or
what the company will want, after
the expert engineer makes his report,
can only be determined by waiting.