The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1902-08-01
WATER POWER.
Company Formed to Develop the Power
at Cashawa Falls.


Lazarus Silyerman the owner of the
water power Of Cashawa Falls has
been in the city several times the
past summer accompanied by experts
and capitalists bent on developing
this valuable power.
His efforts are now maturing and
in few days the Ely Hydraulic &
Electric Co. will be incorporated pro-
vided tue company receives assur-
ances Of returns from their invest
ment in the shape of a market for
their power.
The promoters of the enterprise
presented a proposition to the city
councilat a special meeting Wednes-
day evening and should the city see
fit to accept. the plant will at once
be put in and power guaranteed by
January l. 1903.
The proposition is that the city
contract for 300 horse power at $40
per horse power per year for a period
of twenty years. payable at the rate
of 81 900 on the first day of each and
every month. For this the concern
bind themselves to furnish the city
with the designated power on con-
tinuous service covering "a hours each
and every day.
The council have taken the matter
Id flyi h n
figuring is being done. The develop
ment Of this magnificent power
would certainly prove Il benefit to
Ely and vicinity, as institutions of
various kinds could eliminate from
their cost sheet the matter of fuel,
which in itself is large Item of eX-
pense.
The present electric system of the
city is not what it should be by any
means and considerable more electric
energy could be disposed of, providing
the city had the power so to do. The
cost per horse power at present
amounts to something like $50 per
new dynamos to handle the business
as it now stands. This will mean an
expenditure of all the way from
twelve TO fifteen thousand dollars.
Taking this into consideration, it
stands to reason that some close tigur-
ing is necessary.
At present. 300 horse power is about
a hundreA more than is needed but it
is argued correctly that only a few
years will suffice to bring the energy
used over the contract figures. The
day service would probably also be-
come popular but with the present or
even with new machinery it is doubt
full whether it would pay the city to
deliver power during the day.
From business standpoint some
think the company is asking too
much and figure that 6 per cent on
the investment is good legitimate
basis. The contract with the city
would insure the company 6 per cent
on an investment of 100000. Those
who are in position to know, figure
that a plant to furnish 300 horse
power can be installed for $4,000 at
a fair estimate, thus paying at the
rate of 24 per cent an the investment.
Then again, there arises the point as
to whether the city should bubble
over the company's profits as the
horse power delivered would be at a
20 per cent less cost than now.
An argument used in favor of the
agreement is that even at the con-
tract price of $4,000 a year, the city
would save 20 per cent of the present
cost besides the worry and trouble of
maintaining plant. Again. should
the city put in new plant it is esti-
mated the present cost will be cut 30
per cent,
Be that as it may, the city council
must do something and do it quickly
as the machinery at present at the
plant is no account and new machin-
cry must be ordered several months
ahead in order to insure delivery on
time.