“k
a
I THE ESTABLISHMENT OF THE PLANT.
In 1892, by reason of dissatisfaction with the
kind of service and rates of the electric carn-
pany by which the city was then supplied;
from which there appeared to be no relief.
South Norwalk. following its characteristic
spirit of indepmdence, took the matter in its
own hands and established the first electric
,_ plant under municipal ownership, in the state
, of Connecticut. and thus became one‘ f the
pioneer {unfit lfi'e‘hdiledsifléi f0 e barlr‘
in the business of supplying electricity for pub-
lice service and later for all commercial pur-
' poses.
A SUCCESS FROM THE START.
At that early date the conduct of such un-
dertakings by municipalities was looked upon
with misgiving and wise heads were shaken at
the doubtful prospect of such a bold venture.
The possibilities of political disruption and
the questionable methods of transacting a pure-
ly commercial business on a stable and perma-
nent basis under such a changeable form of
cbntrol as has been the general rule under
municipal government. which is of such an
administrative and legislative character as to
be almost wholly devoid of the elements ne-
cessary to the maintenance of mercantile busi-
ness. argued strongly for unsuccess. This was
the outlook that confronted the South Norwallr
Electric Works as it entered its career. But in
this instance. unlike many dthers. success
crowned the venture from the start. though not
without opposing influences. and soon the
. fame of South Norwallt became known from
deem to ocean as the possessor of one of the
beat and most profitable municipal electric
’ plants in this country. ,
. .
prion A LITTLE ACORN A cam OAK
crows. 5 ‘
From a small street lighting plant of about
too horse-power capacity during its first six
years “of existence. then branching out into
' commercitil’ bum with but sia’patrona on
its lines. and ti: ughvlburdened‘wiih litigation
and blttir appellant by” its soil-y “mllfililm
it actually thrived end his bad tube. a 5 ’
W
OUTH noawALx ELECTRIC
WORKS. STATE STREET
have steadily increased. Thus by inverse ratio
its debt has been constantly decreasing. and
at the present rate should be entirely paid from
profits within the next couple of years. unless
the demands force another enlargement in the
meantime. or unforeseen conditions prevent.
AN ELECTRIC SERVICE NOT DANGER-
.OUSu'g‘O LIFE.
‘ ‘5
i
.a‘iThe novice aupplifil. except for street light-
"ing. which is high tension and entirely inde-
pendent of the commercial service. is by the
direct current two—wire system at no volts
working pressure. 'which was selected as be-
ing not only readily adaptable for both light-
ing and power served from the same mains.
but what is vitally important. is free from dan-
ger to life and also the simplest and most
economic form to operate in a condensed terri-
tory such as South Norwalk affords within its
compact area. This class of electric service.
however. is not original to this city as direct
current distribution prevails in the ‘hrgest
.cities of this country and Europe. but is sel-
dom obtainable in places of this size. thereby
giving South Norwalk unusual advantages in
this respect. Its system of two-wire distribu-
tion is also designed so that it may be con-
verted to the three-wire no-volt method.
should local conditions ever warrant such a
change. which may never occur. as many elec-
tric plants in this country and the great ma-
jority of those‘lbroad have adopted a similar
voltage to that of South NorWalk.
The electric generators are driven by both
steam and Diesel oil engines. this being the
first electric plantin this state to adopt the
latter type of high economy engines.
ORIGINAL INVESTMENT SAVED IN
STREET LIGHTING.
Aside from the profits of the commercial
service. the street lighting service alone has
saved the city more than the original cost of
the plant. as the difference between the pre-
dominating rates paid for. street 5 lighting
throughout the country and those which South
Norw‘lit has paid to its municipal plant up to
‘ the present limo.
e
n '3' .
a
No " poclrxca-ausmssc MANAGW
nan? ONLY.
gunnery-l to, e ‘ilvmr
slimmer.“ in r em."
rowan; being conducted on a ”amniotic“-
" basis. entirely devoid of politi ‘ . :- .
to
her for a three-year term. These commission-
ers who serve entirely without compensation
of any kind—unless generous kicks from
thoughtless persons may be so considered--
organize as a board with a president. treasur-
er and secretary. having full charge of the
plant. the city's fire alarm system. its police
telegraph service and supervision over other
electrical matters in the city’s interest. As
their representative and supervisor of manage-
ment and operation of the plant had its ad-
juncts. they appoint a general superintendent.
During the nearly nineteen years' history of
the plant. there have been only seven changes
on the electrical board. three by resignation.”
one by death and three following a change in
the city chgr‘ter.
n
COMMISSIONERS ENVIABLE RECORD.
The present commissioners are Frederick
Hunkemeier. president: Thomas Robins. trea»
surer. and John R. Spencer. secretary. all fa-
miliar with mechanics and of proven practical
business ability. The present general super-
intendent. Albert E. Winchester. a fonnei
member of the Edison engineering staff. exper-
ienced in central station building. was the de-
signer and original organirer of the plant who.
upon his selection for such responsibility. vol-
untarily gave his services without charge.
though. unexpectedlfiwhen his work was fin-
ished. as he thought. he was presented with a
generous token. not as compensation. but of
the city's appreciation. lie then became one“
of the plant's earliest counulsaioners. but after
having served in this capacity .for nearly ten
years. and a large part of this time.” general
superintendent also. taking so much of his
time that he had to give up his other business
and life opportunities to guard the struggling
little municipal enterprise. He resigned from
the position of commissioner to give his whole
time to that of general superintendent. Thus
he has been constantly connected with the
plant since its earliest projection. In bringing
the plant safely through its early struggles
and establishing it on a firm. prosperous basis.
the former commissioners deserve the highest
commendation for their careful judgment. their
remarkable foresight and earnestness of pur-
pose. which has produced such great results.
But no less honor is due the present board in
having so splendidly negotiated and completed
the plant‘s last enlargement at a coat of about
$30,000. all of which they have provided for
from the plant‘s net profits of 19:0 and part of
those of the present fiscal year. without adding
one cent to the plant’s debt. but upon which
they also paid $7,000 since entering their 0f—
tice as men unfamiliar with this line of busi-
ness. Of such a record the past and present
commissioners have just reason for feeling
proud. for the city is certainly proud of it. and
of them. '
u
PLANT user LARGELY Lrouroa'rao.
That such a record of «defiance. no party
gained. ‘has been continually maintained and
augmented. will be recognised by .a glance at
the following facts:
Total investment in p ant to date. as-
elusive of all replaced apparatus. a
I
OV" dhlolfie‘poe‘o‘salte‘lehh‘fiotslleau'a’m
Total .debt. unliquldated bonds an .1
Total surplus. or paid up equity in
film.” terse-uruuiasu’lmtonun- 1M5”
w , , t
.
a "a
a.
i convict; ar cow, coir sacrifices.
‘
r
Municipal 1" Electric Works, Worth $500,000
the plant is doing, the following deductions
have been transcribed from its annual report
of row. exclusive of the last enlargement.
which was not then completed:
Net income for the year ..... . . . . $64,766.59
Total cost of operation. including
repairs. fuel. insurance. salaries. in-
terest. supplies. etc. ............. 38.32747
Gross profit .................... $26.4 39 3a
A
DEPRECIATION PROVIDED FOR.
With the purpose of taking care of deprecia-
tion in a practical .and economic manner. the
surplus earnings have been used to both reduce
the debt and for reinvestment in extensions.
and betterments of the plant. thereby con-
stantly loweringhhe interest charges and pre-
paring for business expansion. Thus the gross
profit of 1910 was applied as follows:
To reduction of debt .............. S 7.ooo.oo
For new construction ............. 2,314.2:
Applied to the rpm enlargement. . . . xa.rag.33
Balance to bqpplied on the enlarge-
ment. to be added to earnings of
ion for such purpose ..... . ..... 4.99548
Gross profit .................... $26,439.32
The depreciation. therefore. taken as high
as ten per cent. on that part of the investment
represented by 815150391. being the assets.
exclwive of cash on hand. accounts receiv-
able. supplies and legal expense. according to
the tp‘l‘h report. which does not include the
‘then'1tiufiniahed enlargement. will be $15.-
r68.3o. leaving a net profit of 81:37:02.
a.
COMPARISON on parvnra OWNER-
suw BASIS. ,
Taking the net profit as last stated and de-
ducting therefrom the combined state. town.
city and school taxes. amounting to 19% mills
on the list of 1909. on a taxable valuation of
about $91.oog.bo-being at the ratio of 60% of
the above 3151.683»: valuation—which under
private ownership wouldprobably be the max-
imum amount on which a tax :aaa'essment
would be paid. the amount of taxes would.
therefore. be $1075.69 which would still leave
a net profit of $9495.33.
This final net profit would yield a dividend
of over‘aia per cent. for the year—4n addition
to the‘isurgm paid out in interest—on the
total investment. or capitalisation of the grand
total of assets to the amount of 3:57.30261.
as stated in the report. less the deduction for
cash on hand and deposit. accounts receivable.
it
A»
supplies. etc. It is quite probable. however.
that under private ownership. the stockholders
would feel justified in considerably increasing
the capitalization. cutting down the ratio of
depreciation and issuing at least $000,000
worthof bonds at five‘per cent.. according to
the usual custom with,undertaltings of this
character.”
PLANT WORTH $500,000.
Thus at a fair commercial rating. based upon
its present prosperity and promising outlook.
if considered as a privately owned public util-
ity corporation. it is readily apparent that the
South Norwalk electric works would command _
a market value of at least $500,000. inasmuch
as an amount representing more than dou-
ble the investment then in the plant. as will be
remembered. was offered to the city for its
purchase. some years ago. but was pot con-
sidered. though the plant wasnm5‘ smaller
then than now and its future much less bright.
conrmuous DEMAND FOR THE SER-
VICE. 4'
These facts easily explain why South Nor- 1"
wall has more street lighting per capita than 7‘
any other known city approaching its size:
why it has a larger rated capacity in electric
motors connected to its lines than cities many, -
times its size. as well as a larger ratio of com-s
merciai lighting per capita. Notwithstanding
this showing. the demand for the service grows
rapidly and the field for further development
cannot be estimated. The homes of the well.
to-do and the humble both glow with the city's
light; its stores are brilliantly lighted and its
many factories hum with its electric power; .1
all because the city wisely provided for this
need of its people most happily and econom-
ically before it was too late.
Though the citizens. who have watched. this
institution of their own grow beyond their ex-
pectations. are proud of it. its service is ap-
. preiated by no one so well as by the new-
comer. who marvela *bt its cheepnesa and ex-
cellence, in comparison with that with which
he has been accustomed elsewhere.
SOUTH NORWALK’S SPLENDID GAINQ
just such facts as these help to tell the story
of South Norwallr’a splendid gain in proaper-
oua modern factories. its growing greatness as
a commercial center and why its population ’
has nearly doubled in two decades. Yes. and g p
it may well be added. why it is destined to '
ranlr among New England’s greatest munici— ,5 ‘
palities within a generation. ‘
Norwalk Chronicler