Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1919-10-31
INSTALLATION o. ELECTRICAL
MACHINERY SAID TO BE- IN
DOUBT.
UTILITIES coMPkNY's
PROPOSAL FINDS FAVOR
Mayor Wilson unaitsrahly Opposed
to Buying Juice From Iowa Rail-
way and Light company-ciaims
City Can Produce Electricity at Less
cost-Publie Is Opposed, He Says.

Defeat or the plan Oh the CITY coua-
Gil to install electrical machinery to
light the streets was near Thursday
when 1t became evident that the coun-
Gil was divided between the installa-
ton OF equipment and signing a nve-
year contract with the Iowa Railway
and Light Company to furnish cleo
tricity at cents per k. W. hour.
Mayor Wilson expressed himself as
unaltersbly opposed to entering into
contract with the utilities corpora
ton, but admitted that 1t, would re-
Quire some effort TO secure a favor
able vote in the council on the pur-
chase Of equipment.
The mayor insists that the city can
produce its electricity at less cost than
| 1t can be furnished by the Iowa Rail
way and Light Company and submits
figures in support OF bis claim. The
estimates in the possession Of the may
or were prepared by representative
of the Allis Chalmers Manufacturing
Company. OF Milwaukee, who had sub
mittsd bid on the electrical equip
msnt. but who Is said to now have no
interest in the letting of the contract
Cost Of Producing Electricity.
At present the city has lao street
lamps and the council wants to In
crease this number to AGO. Lights now
are turned off at midnight but when
the now machinery is installed the city
streets will be lighted all night
The annual cost OF maintaining and
operating 100 lights, according to the
mayors figures would be between sA,-
400 and $500 for coal, plus overhead
expenses. In preparing the estimate
on coal, the mayor says, 80 per cent
line loss and 10 per cent loss thru en-
CINE and generator friction was taken
into consideration. The overhead ex-
penses, while not definitely shown,
would be suaall, according to tho may
or. Whether the city produces its own
electricity or purchases from the cleo
trio company. It will be necessary to
employ q uneman and furnish the
lights. AS q consequences these items
Of expense are not considered in the
total cost
Cost Under Contract Plan.
Under the plan for contracting with
the utilities company. the mayor claims.
the cost would be $4,000 annually, and
he fears. so he declares. that at tho
expiration Of the five-year period. the
utilities company would have the city
at its mercy. unless the council had
meanwhile made preparations 70 manu-
facture its own electricity. At the e.
ptration Of the contract the city be-
ing without means Of producing elec-
trtcity, the utilities company might, he
declares demand an increased rate,
and while the matter was being sub
mitted to . board OF arbitration and
the companys books were being audit
ed, the city still would be consuming
company electricity In the end, ne
says, the city undoubtedly would be
compelled to pay an increased rate and
the difference between the contract
price and the advance rates for the
time consumed In hearing the case.
The mayors greatest fear. however
as expressed by himself. is that the
public Is opposed to tho city making
contract for electricity with the cor
poration.
Cost of New Equipment
The new equipment 1t is proposed to
install. the mayor added. would cost
s22, 900 to $4,000. The figures pre-
pared by the mayor and the represen-
tative Of the Allis- Chalmers company.
however, fail to show the cost to the
city in depreciation on the electrical
machinery and the interest on bonds.
With the cost Of installation estimated
at $4,000, the depreciation, at 10 per
cent in electrical apparatus, will be w.
500 annually. The fiotation Of bonds
will be at about per cent interest,
adding another 1880 expense annual
ly to the lighting plant. Adding these
items Of expense to the cost Of fuel, as
submitted by the mayor, the total is
but si,756 less than the cost proposed
by the electric company. In addition,
overhead expense and the wages Of an
electrician and Iipeman must be add
ed to reach q fair total Of operating
expense. 1.
To Proceed Slowly.
Members of the city council. as well
az tho mayor, expressed themselves as
desiring what was best for the city
and careful compilation Of figures has
been made to arrive at a definite cost
Of production Of electricity BY the city
as compared with the price offered by
the utilities company. 1t appeared
likely that no action would be taken
on the bids until the middle Of next
week.