Omaha daily bee., 1908-03-21
BONDS FOR POWER CANAL
nSvNSS to Develop Municipal
:, wv Plant in Omaha.
REAL ESTATE EXCHANGE BOOSTS
Wants City TO Vote on This PROPOSE
tiOn I'm. MRy-Executive Commit
tee Acts on Report of
investigators.

The city OF Omaha will be asked to vote
s. OOO,O 900 issue of bonds to build a power
canal" and install a municipal plant by the
Omaha Real Estate exchange, which
claims that electric power can be fur
nished for one-half the price now secured
by the private plants generating electricity
by steam power.
This was decided at an executive ses-
sion of the exchange held in the Young
Mems Christian Association building Thurs
day evening, when the reports of c. f.
Harrison and d. c. Patterson were heard
on the practicability and feasibility of the
natural water power developments ad-
jacent to Omaha.
The special committee OF the exchange
will ask the city council to submit the
proposition at the election in May, and
| allow the people of Omaha TO vote their
pleasure on the question.
Members of the committee which will
| ask the council to submit a proposition
and probably secure a petition signed by
5000 voters, are: w. T. Graham, president
of the exchange; Harry Tukey, secretary;
F. D. wead, ID. c. Patterson, c. F. Harri-
son, John f. Flack and Byron Hastings.
Work of Years.
| For several years the real estate dealers
have been securing facts showing that the
| proposition of q water power development
which would furnish cheap electricity, was
not only an engineering possibility but a
commercial proposition, which would in
| sure power for not more than 1 cent per
kilowatt hour whereas 1t costs from
cents up to furnish the power with the
steam plants
Mr.. Harrison has investigated the sub
ject fully from a commercial STANDPOINT,
after engineers furnished reports saying
that any one of three or four projects
were practicable. He visited every city
of Importance in the United States and
went into the cost and market for power,
then he wrote to city officials Of Cana
dian and European cities, and had long
report on his Investigations to give the
exchange
Mr.. Patterson compiled his report from
the reports Of half dozen engineers who
have looked into the proposition of develop
ing water power from either the Platte or
Loup rivers and declared either the Co
lumbus.Loup river" scheme or the FIRE.
mont-Linwood canal to be practicable.
City Engineer Quoted.
City Engineer Andrew Rosewater was
Real Estate exchange as saying that a
canal could be built from Fremont to
Florence which would furnish both power
and excellent water.
| But the Real Estate exchange will not
decide as to which project is the best.
| The position taken by the committee is
simply that the water power exists back
of the city, which needs cheaper power
than steam can produce The Seymour
park project. Fremont-Linwood canal or
Loup rlver-Columpus plan will all be con-
sidered. but the city will be asked to put
upward of $5,O0O,OOO into one or the other,
and the Real Estate exchange and its en-
gineers expect to be able to show that any
one Of the projects will furnish power at
half the cost of steam-made power, pay
| interest on the bonds and leave a surplus
each year for the retirement of the bonds
| in other words, that municipal power
canal win pay for itself.
Report of the Exchange.
The report of the Real Estate exchange
committee. quoting engineers, was as fol-
lows:
From the many reports of engineers in
| our possession we are able to satisfy any
candid man that not only is such devel-
| opment commercially practicable, but
highly profitable. and we quote just enough
from these engineers to indicate the real
situation"
! In 1892 Mr.. ]. T. Tanning, then engineer
in charge of the water power at Mime
apolis, reported follows on the Platte
canal project:
We would emphasize that the physica;
| conditions supplied for this power by
ture, and the Typographical condidtions of
| the country over which the canal will ex-
tend, are favorable for the building of
] this power; the engineering constructions
! are comparatively easy, and in accord with
/ ample precedent; the demand is almost
! certain for the power created, and the in
vestment offers the elements of safety
| fair, increasing remuneration for the use OF
| the invested capital.
! In May 1906, Engineer Hough of New
| York, who is now building the Penn
| sylvania railway underground tunnel under
the city OF New York, after an examination
Of the water power project in his report
said:
II may be interesting TO note that with
| one-half the power sold the esrnings will
| pay all the operating expenses, per cent
on the cost Of the work and per cent on
| S6OOO,OO0 of stock
! Engineer studevant of Chicago. in No
vember, 1906, in his report said:
! From my acquaintance with all the con-
ditions affecting the construction and the
prise entirely feasible and practicable, and
| the securities issued for It's completion win
be a safe and desirable investment.
Go Clear TO Switzerland.
! We take from the report OF Prof. Hill
gard of Switzerland, the following figures
affecting the commercial feature of the
! project:
The estimated net earnings would be
S35O,0OO after deducting all expenses of
| operation and interest on cost.
And from the report of c, 7. Main of
Dean & Main of Boston. made in December,
/ 1906
The estimated cost OF operation main
| tenance and interest on cost is $4O4 25O per
| year. Substracting this amount from the
/ gross income leaves s446, ,1O66O estimated
/ profits. available for retirement Of bonds
and dividends on stock.
In 1907 w. S. King. engineer for the
Union stock yards. in his report on this
project used the following language:
II only half this power was sold the in
/ come would be 900 and after deducting
/ operating expenses and interest on the cost
OF the development il would leave net earn