The Owosso times. (Owosso, Mich.) 1897-1926, 1907-11-01
REPORTS ADVERSELY.
Syracuse Lighting Commission
Advises Against City
Light Plant.

|
Omitted From Reports.
| Syracuse has set an example of civic
caution in dealing with municipal own
erssip which other cities would do
well to emulate. Instead Of leaving the
question of establishing a city lighting
plant to be settled by public clamor
the council authorized the mayor to
appoint a commission of representative
citizens to investigate the subject.
| This commission has just made q
unanimous report which covers eight
months study of the case. During this
period experts were examined, and an
investigation was made of the results
of municipal ownership in twenty-five
cities, the members of the commission
| personally visiting those cities which
claimed the best results-viz, Detroit,
Columbus, Allegheny, Holyoke, Taun-
| ton and South Norwalk. The report
considers the establishment Of plant
for both public and commercial light
ing and for public lighting only. 1t
has not yet been printed in full, but
the following extracts are taken from
the Syracuse Herald:
1.-THE investment of taxpayers mon
ey sufficient for such an undertaking
would be justified only after we are
satisfied that the laws designed for
our protection are inadequate or in
effectual or that the public service
commissioners are not to be relied
upon to do their duty.
"We find that the borrowing capacity
Of the city will not at this time permit
the construction of an electric light
plant of sufficient capacity to furnish
light, heat and power for both public
and private use.
1--WE advise against the municipal
ownership of such plant at this time,
even though the bonding capacity of
the city were sufficient for that pur-
pose.
1--WE advise against the municipal
ownership at this time of plant for
the manufacture and distribution of
gas for light, heat and power for both
public and private use.
ut is the belief of your commission
as the result of it's study of municipal
plants which light the streets, parks
and public buildings only that the city
of Syracuse cannot hope at the present
time to secure such service through a
municipal plant at true gross cost
lower than the current contract rate,
making proper allowance for all Gle
ments of this cost on q rational bust
ness basis.
This would appear to be a peculiar
ly inopportune time to inaugurate
municipal lighting project owing to tho
very high rates of wages and prices OF
materials now prevailing and to the
agencies which have reduced and tend
to further reduce contract rates for
lighting service.
"Those cities which established mu-
nicipal lighting systems ten to fifteen
years ago entered the field when plants
could be constructed for very much
less than similar equipment would now
cost and when the rates maintained by
private corporations for arc lighting
were so per cent to 100 per cent high
er than those existing In Syracuse to-
day. When those cities began to sup
ply themselves with light large saw
ing over contract rates was easily ef-
fected. Today they are not securing
the service mvch If any cheaper than
we are in Syracuse under our contract,
and 1t is grave question whether
these municipal plants can even equal
contract rates OF the near future.
us it not, then, the part of wisdom
to await developments, meantime en-
Toying the reasonable rates for street
lighting now in force, and IL 1t be-
comes advisable and desirab BILE to build
municipal plant at some future time
60 reap the benefit of improvements
yet to be introduced and probably Of
lower cost of construction
Believing this to be the case, your
commission unanimously recommends
that the city of Syracuse do not at the
present time construct a municipal
plant for lighting its streets, parks and
public buildings"
In appendices to the report the COM
mission deals with the balance sheets
Of the cities having municipal plants.
The scrutiny has not encouraged the
commission to believe that municipal
ownership has been the success that
its advocates have claimed. Joseph
Bondy's figures are given In many
cases and the figures of the report to
show that the Syracusan, like many
other municipal ownership advocates,
has been misled by surprising book
keeping. Depreciation is generally
charged too low. There Is no sinking
fund; there is no provision for interest
or for lost taxes. In number Of
ways the books are made to show
profit where there Is no profit OF
Columbus, o., the report says:
Eve are led to believe that the true
net cost for arc lights to the city of
Columbus is probably nearly IL not
quite as high as tho present price in
Syracuse making q reasonable allow
nnce for difference in the market price
In fuel.
Your commission has found no in
stance OF a city operating a municipal
plant for lighting its streets and pub
lie buildings exclusively under condI-
lions approaching those of Syracuse at
4 cost per arc light less than the pres
nnt rate in Syracuse, in which the
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