The Hays free press. [volume] (Hays, Kan.) 1908-1924, 1915-07-03
CITY LIGHT PLANT PAID.
CLAY CENTER MADE A PROFIT OF
$4,000 IN SEVEN YEARS.
A Private Company Refused a Liberal
Franchise, Then the Town Went
Into Business and Re
duced the Rates.

Into Business and Re
duced the Rates.
CLAY CENTER, KAs., June 26.-Clay
Center is one town which has proven
that, with good management, munic-
ipal electric light and water works
plant is a good investment In 1903
Clay Center, after struggle with the 4
privately owned plant, voted S25, 600 in
bonds and erected municipal electric
light plant, joining it with the wafer
works plant which the city already
owned. At that time Clay Center citi-
zens were paying to the private COM
pany fifteen cents kilowatt for their
electrical current.
It might be said here that most of the 1
people of Clay Center did not desire to .
erect municipal electric light plant, and I
the city before going into the electrical
business offered the private company a /
franchise which would permit them to I
charge twelve cents a kilowatt But the
private company refused such franchise,
insisting that the city grant a franchise
permitting the charge of fifteen cents, F.
up to a maximum of eighteen cents.
Clay Center voters refused to grant such
franchise and, by large majority,
feeling they were forced to, voted the
bonds to erect the municipal plant,
which was at once put up.
TOOK OUT S25, 600 FOR IMPROVEMENTS.
Clay Center's plant cost $25, 900, for
which bonds were voted and issued.
However, that sum would not pay for
all the work which it was desired to do
and, just as rapidly as the plant showed
/ earnings, those earnings were spent on
| lettering the plant. In all, fully SIS, 900
more was spent. Wires were extended
to take in all the city, parts of the city
being given electrical current where it
had been supposed there could be no
possible return on the money invested.
New pumps were bought for the water
works plant. The city was given
''white way" in the business part of
town, making Clay Center the best light
ed town of its size in Kansas. Every
street intersection in town was given q
light. These things were accomplished
from the earnings of the plant, with the
exception of a small appropriation by
the city, fully S25, 900 being spent in
that way In addition to that, the city
for nearly six years was given its street
lighting and water for fire protection
free of charge.
In addition to- that, the city plant at
once reduced the price of electricity,
charging the same price offered and re-
: fused by the private company and Civ
ing in addition 10 per cent discount.
/ That was the price which the city had
been willing to pay the private COM
| pany. January l, 1915, a further re-
{ duction was made in the price of cleo
, tricity, to ten cents kilowatt for resi-
dences, with sliding scale downward
to power users and other large users of
electricity. Ten per cent further reduc-
ton is made on bills paid by the 10th Of
the month.
FORCED PRIVATE CONCERNS OUT.
From the start the city electric light
plant made profit, although at first
, the profits were not large, as the PR.
vate plant continued in business and the
d. business was split with that concern
Finally the city was able to force the
private wires off the streets of the town
and obtain all the business for the city
+, plant. From then on the profits of the
city plant have been very large, so thai
} since the plant was erected, in 1908, VI
to the present time, it has entirely PAID
+ for itself. All Indebtedness has beer
; cleared up. At the present time therc
is remaining, of the S25, 900 bond issue
z only S12, GOO outstanding, the rest hav
P ing been paid. The city council has al
ready passed the ordinance to make the
L payment and when the interest come.
e due, July 1, this S12, 900 viii be paid
/ That viii leave the plant free of debt
It viii mean that since the plant wa
3 built in 1908, it has made clear, abov.
{ all expenses, around $50, 600, of whicl
i SIS, 900 has been spent TO retire tn
: bonds and SIS, 900 has been spent in i'm
: proving the plant.
TOWN TO CELEBRATE.
u It is wonderful showing. Clay Cen
e ter offered a private company q fran
chise of liberal provisions which wa
refused. The city then erected a plan
= of its own, cut the price Of electrica
: current much below where people ha
= expected IT ever TO be cut, and in sevel
= years entirely paid for the plant, mad
e improvements equaling the origina
: cost, gave the city better street light
- ing than any other town of its size /
= Kansas. What. Clay Center canno
= understand is-wlat was it that cause
a the private company to turn down sue
= a good thing as this electric light plan
= has proven to be- The town also Won
- ders what the private company think
= = about itself now, when it contemplate
- what it lost in refusing this good thing
Now that the plant is entirely free Q
debt, it is believed the price Of eleC