The Oskaloosa herald. (Oskaloosa, Mahaska County, Iowa) 1885-1919, 1913-02-06
BY MUNICIPAL OWNERSHIP
SEN. FRANCIS CONFRONTED BY
DISCoURAGiNG FIGURES.
His Home Town Had Electric Plant
Given It, Run II In Debt and
Sold For Song.

Des MOineS, Ia, Feb. 5.-When SEN
ator Leslie E. Francis of Spirit Lake
arises before the Public Utilities
committee of the Senate to champion
the cause of home rule" of city util-
ity plants, Oh the theory that politi-
cal corporations are capable of sue.
cessful business management as pre-
vided in his measure, he will be con-
fronted by discouraging figures from
home.
Members of the subcommittee on
the draft of a bill have been making
a careful investigation into the oper.
alton OF municipal plants in Iowa,
with a view of being able to solve
correctly the problem of how extern,
IsiYe should be state supervision, and
they have found that nowhere in the
state was there Il more dismal failure
of municipality owned plant than in
Spirit Lake.
1t is found that the Spirit Lake
Electric plant was built in 1884 by
B. f. Stevens at cost of $4,000. In
1890 Mr.. Stevens left for the West
and, wishing to do something for the
city where he had lived so many
years, made an absolute gift of the
plant to the city of Spirit Lake. This
plant was secured without the eX-
penditure of cent and consequently
there being no bond issue, there was
no interest to pay. The municipality
undertook the management of the
plant. 1t commenced to lose money.
Hundreds and hundreds of dollars
were sunk by the city in operating it.
1t was an elephant on the city pay.
roll. The council was in despair
when in 1909, an ambitious young
man by the name of Harry Wiltse APP.
peared and offered to buy the plant
for $1,000, and furnish the city free
street lights for five years, The coun'
Gil grabbed at the opportunity. Wiltse
had no money, and had to float notes
among his friends to raise the 81 900.
He commenced to make the plant a
success. He paid off the notes; put
IS, 900 worth of earnings back into
the plant in improvements; furnished
the city free street lights and made
"a good living for himself and family,
Last August he sold the holding to
Jim Ehret for $4,000, the purchaser
agreeing 10 Iulllll tne COuLTdCl WIFI
the city. So in practically three years
Harry Wiltse made $4,000 out OF
that which had run the city in debt
and during all the time the rates for
electricity to private consumers has
not changed. Besides this WiltSe be
gan a thousand dollars in debt, where
as the city had an even start.
Senator Francis will accordingly be
confronted with the necessity of eX
planning to the committee why, il
cities are as he says competent to run
their own utilities, his home town
failed with the same plant of which q
private individual made an excep
tional success.
A rather new and interesting plan
of permitting cities and towns to en-
ter utility businesses is outlined in d
bill just introduced by Representative
Sidey of Greenfield, which would give
municipalities the right to buy power
from power companies outside Of
their corporate limits, and to resell
il to residents of the city. In .
phrase this would permit cities TO be
come jobbers instead of manufactur
ers of utilities.