Frostburg mining journal. [volume] (Frostburg, Md.) 1871-1913, 1908-07-04
REASONS FOR FAILURE.
Some of the Municipal Lighting Ex.
periments That Have Failed-Ths
Causes and he Losses.

periments That Have Falled-Ihs
Causes and he Losses.
Modesto, Cal. purchased its cleo
trio plant in $780, but has since shut
down its generating plant and leased
the distributing plant A well inform
ed citizen says:
"The city was able to buy power
cheaper than 1t could generate it.
Moreover, new boilers were needed.
the city had provided no renewal fund
and the people disliked the idea of
bonding. The waterworks also were
leased to private parties"
The mayor of Pittsfield, Ill.,, assigns
the following reason for the sale of the
electric plant formerly owned by that
city:
Cheaper to pay the Pittstied Flee
trio company than to do 1t ourselves.
We ran it ourselves for several years
and have had it run by contract at
least five years, saving money by con
tracing it to outsiders"
The people of East Chicago, Ind,
thought that they could save money
by running the electric plant them
selves. They bought 1t In 1900 but by
1903 1t was in the hands of receiver,
and as the city was unable to redeem
the plant it was sold In 1907, together
with twenty-five year franchise.
The town of Lowell, Ind, purchased
In 1901 for $4,000 the electric light
plant which had been Installed two
years before In 1907 the plant was
sold for $780, the difference between
this and the purchase price represent
ing n depreciation of 10 per cent IL
year The purchaser installed a new
plant, as the old one was worth only
about $1,000 as junk. The reasons as
signed for the sale are that the plant
was being run at n loss and was in
very bad condition, while the town
was so heavily bonded that 1t could not
install new plant. A twenty-five
year franchise went with the plant.
According to the mayor, the electric
plant at Mentone, Ind, was purchased
in 1899 from a private company for
$4,000 and was sold in 1908 for 5000
because 1t was closing proposition"
Another correspondent assigns poor
service and lack Of management as
the reason for the return to private
ownership.
The electric plant of Lyons. Ia. in
stalled In 1889 at n cost of $4,000,
was sold for SIS, 900 in 1902 when Lyons
was annexed to Clinton because better
service could be obtained from com.
pany
The municipal electric plant of Som,
erset, Ky, installed in 1893 ut cost of
$4,000, was sold or leased to a private
company after being in operation about
two years.
In 1903 the city Of Langdon, n, d.,
purchased the electric plant from its
owners and spent $4,000 in improving
it. AS 1t could not be made to pay it
was sold In 1906 for $4,000, entaiIing
loss of $500 in three years, not in
Guiding the loss III operating, which
amounted to about $4,000 year.
The borough of Emaus. Pa. installed
an electric plant in 1890 and sold it five
years later at about one-third of its
cost. The borough clerk states that
the reason for abandoning the plant
was chiefly its heavy expense, the
lights costing considerably more than
the borough could get them from a
private company.
Some years ago the city Of Dayton,
Tenn, purchased or leased an electric
plant, but was compelled to retire from
the business because the expense of
running 1t was about three times the
cost of contracting for lights from
company.
Kent, Wash, purchased Its electric
plant from private company In 1892
and sold it ten years later for about
half what it paid for it. The mayor
assigns as the reason for selling, Gould
not make 1t pay"