Evening journal., 1911-09-27
HAS REDUCED THE PRICE
OF GAS AND ELECTRICITY

aud received very prompt and de-
| tailed answer. In view of the fact
that my correspondence was start
ed in my official capacity in an effort
to secure information which might
prove of value to the citizens of Viii
mington, and since it seems that the
information secured Is at least ex-
tremely interesting, / submit here
with the replies in question for the
careful study and analysis of those
who are really seeking a solution of
the problem which confronts us.
Before closing. permit me to sug-
gest few questions which might in
terest us
!. Do not the rates paid by Hol-
yoke for its street and other lighting
seem rather favorable when compar-
ed with ours? Look It up.
II. DO not the low rates for power
in the New England city rather en-
courage the establishment of new in
dustries and the enlargement of old
ones? Contrast with Wilmington.
Ill Is not municipal gas and
electric plant real asset of the city,
The plant in question seems to be run
by the people and for the people;
and don't forget that il is owned by
the people and the people receive the
benefit of all profits that may accrue,
". Note the amount Mr.. Kenney
states has been put into the plant
from its own earnings; and don't for
get that the rates are pretty low when
compared with ours.s
V. Would municipal ownership
~. ataaHt
plants, but by the establishment of
new ones) be worthy of consideration
under our present circumstances ?
Give us a City Comptroller willing 20
do his duty and a little more, and we
might even give Holyoke something
to think about.
Yours truly,
Charles r. Kenworthey.
The following is the correspond
ence:
Auditors Office. City Of Holyoke,
Massachusetts, ID. W. Kenney,
City Auditor.
sept 10, 1911.
Charles r. Kenworthey, City Auditor,
Wilmington, Del
Dear Sir: About 1897 the city of
Holyoke voted to purchase the gas
and electric plant from the Holyoke
Water Power Company, private cor
iporation. Neither the city nor the
corporation agreeing upon the amount
to be paid a special commission was
lappointed by the courts TO determine
the value of the plant. IL took about
five years of litigation to arrive at a
decision, the plant I'm the meantime
being operated by the Holyoke Water
Power Company. As a result of the
commissions findings, the city paid
S720, 100000 for the plant and in addi-
ton it cost us about S111,000.00 for
Litigation expenses and VIC received,
so far as the electric end was con-
cerned, a practically dilapidated
plant; the gas end was in fairly
good condition. The coss Of gas to
the public when we took the plant
over was S1.35 net Tie electric
rates / cannot quote because the
amount used was hardly noticeable
Electric power was not being sold at
all. The city paid 10000 a year per
light for its street lighting.
Since the city purchased the plant
il has put into it. including the pur-
chase price, St,OS4.000.OO from bond
issues and $67S. S.599.23 from its own
earnings, making a total of Sligo,
b99.23."
II has reduced the cost of gas tc
Si.OO per thousand net electric lighi
six cents net, power from one ano
one-haIf to two and one-half cents
We thus furnish the consumers the
cheapest electric light and power tha
1 know Of I'm the east. and possibl,
In the country. The city now pays
instead of $4,000 per light $500
per light. and for incandescent light
and power two cents. The plant als'
pays all its own fixed charges meeu
its bonded indebtedness, which IS pro
vided for by serial payments, its In
terest account, besides maintaining
Eve per cent depreciation fund.
Our electric plant is wholly mod
ernized and we find Il difficult to keel
pace with the demands. We. expec
next year to put about S125,000.0'
into the gas plant which VIII brinl
that up TO all modern requirement.
and enable us to sell gas for 20 o
so cents. In this state, municipal ligh
plants are under the strict supervis
ion of a State Commission so we ar
subject at all times to whatever re
quirements the commission in IL
Judgment deems proper to impose.
II this brief explanation is not sat
isfactory. I have no doubt persona
letter to Mr.. W. II. Snow, manage
, of the plant, will secure for you what
ever additional information you de
sire.
Very truly yours
d. W. Kenney, City Auditor
{ The following letter was receive
from Mr.. Snow.
= Mr. Charles R. Kenworthey, Whining
ton, Del
Dear Sir: Yours of the 22nd in II
D data on the Municipal Gas and Ele,
! trio plant in this city is at hand.
Answering your questions in n
order they were asked:
"a What was the capitalization
, your gas and electric plants at n
time they were acquired by the city
There was no lighting company her