Evening Star Newspaper, July 5, 1931, Page 67

) " THE SUNDAY STAR, WASH!NG;£:§ . c . JULY §, 1931 ~° Largest TAXLESS TOWN The Old Saying That Man Can Beat Anything but Taxes and Death Is Only a Half-Truth in Chanute, Kan., Where Municipally-Ozwned Water, Light and Gas Plants Have in Seve America’s 1Years Sliced City dax Rates From $13.810on Each $1,000 Valuation Dozen to Zero and LeftFatProfits for Public Buildings. BY JACK WILLIAMS. ONTE CARLO, Kingdom of Mon- aco and Chanute, State of Kansas! Across the world apart, they are strangely different vet strangely akin—in that both have crushed that bogey man, Taxation. From its gaming tables Monte Carlo, most famous gambling spot of the world, garners enough to free its citizens of taxation. Chanute, Kans., slew the tax ogre by taking over the operation of its own public utilities—gas, water and electric light and power. While Monte Carlo pays its homage to the profitable gaming god, Chanute takes as a matter of course its world-wide fame as the largest taxless town—probably the only city in America free from local taxation. B. P. Baughman, lumberman and mayor, who spent six years building up the city's utilities to where it was freed from taxation, has just been voted out of office. He was snowed under. He received only slightly more than 700 votes as compared to 3.000 for his opponent. In most ways Chanute is just like the regular Western city of 10.000 population. It has its Rotary Club and Chamber of Com- merce. It has a municipal band and an air- port. It has its county fair and building and Joan association. But when you meet the people in Chanute, .you learn Chanute is a very extraordinary town. The people own Chanute, they tell you. With the three municipally owned utilities earning profits at the rate of about $90.000 a year, the city of Chanute sees an opportunity for an eventual municipal Utopia. Pirst a large memorial building was decided upon. It was built and forms the center of life in Chanute. Then came an airport and a “white way.” Attorneys now are figuring out a way to revise the law and use profits from the utilities to widen and pave the streets. “If This keeps up, there is no reason to be- lieve that Chanute eventually will not be the best built city in the world,” smiles H. W. Loy, the new mayor. “The consumption of elec- tricity and gas is growing each year.” So, you see, the story of Chanute may get bigger and bigger every year. Some even say it some day will be as famous as Rome. Others tell you it won't last and that it wén't be long until the whole thing tumbles and taxes come back again. “Some people still believe the world is flat.” retorts the mayor, and he draws from his desk pigeonhole the fiscal account for the last year to show how the utilities turn out enough profit to pay all city expense and still leave & surplus to carry on with new buildings. When one steps off the train in Chanute and out into Main street, he is impressed by the neighborliness of the town. To the stranger who has heard of Chanute's taxless fame there is a certain thrill in arriving on its main street. One may expect to find a neighborly feeling right on Main street, and he is nol. disappointed. T the newspaper office on Sunday morn- ing one always finds George Moody, the advertising manager, business manager snd ofttimes news gatherer. “Is this town of Chanute any different from any other towns because it pays no taxes?” Mr. Moody is asked. “I believe it is,” he replies. “People take an interest in running the town, as if it was their own business. Elections are not run on political issues, but everybody runs as an independent. We always have plenty of candidates, and good ones.” He glances out the window and waves his hand. Dashing to the front door he summons Guy 8. Jeffers into his shop and intro- duces him. Mr. Jeffers turns out to be the commissioner of utilities, one of three men who run the city government, including all the public util- ities with the exception of the telephone sys- tem. H. E. Coulter, a transfer man in private life, is the commissioner of finance. . Now one might think that to run a city's public utilities an experienced utilities man would be required. But Mr. Jeffers turns out to be the music dealer for Chanute. He runs a music store. “We have solved that problem by hiring an electrical engineer who is a whizz bang,” Mr. Jeffers said. “He is running our plant so that M i= a very profitable business. The Memorial Building in Chanute, housing all city offices and giving space to many civic societies. It was built by utilities profits. ““We are making a profit on all of our utfl- ities and are giving our citizens a very low rate. [Electric rates are 6 cents per kilowatt for the first 50, 5 cents for the next 50 and 4 cents all over 100 kilowatts. There is a minimum charge of 50 cents for all three of our services. The water rates are 25 cepts per 100 cubic feet for the first 1,200 feet, 17'% cents per 100 additional to 12,000 feet and 12'2 cents per 100 additional up to 120,000 cubic feet. “Gas is sold at the rate of 50 cents per 1,000 cubic feet for the first 10.000 feet, 45 cents per 1.000 from 10,000 to 20.000 feet, 40 cents per 1.000 from 20,000 to 100,000 feet and all over 100,000 cubic feet consumption per month at a rate of 35 cents. The official who looks forward to seein, Chanute the best built city in the mrl-i H. W. Loy, mayor of the city that pays no taxes, 1| T requires only about 25 employes to oper- ate our city government. We save ex- penses by having consolidated forces. One meter reader reads all three meters—water, 2as and eleciric—when he visits a home. Our losses are small and bills are paid regularly, as the customers know they are a part of the business.” Mr. Loy, the mayor, is at his home, but wil be glad to drive down to his office and talk. The mayor's office is in the Memorial Build- ing. In fact, almost everybody in Chanute makes the Memorial Building headquarters. It was built from the funds from their own pub- lic utilities. Chanute has no woman officials. There is only one woman on the official pay roll, and she manages the rest room, where all the county is invited to come in on Saturdays and eat basket lunch or meet their friends. However, women's organisations have head- quarters—furnished free—in various rooms that make up the big Memorial Building. It covers a big block and is three stories high. The American Legion, the Legion Auxiliaay and other patriotic societies have their own headquartfers in various rooms in the Memorial -Building. There is a large auditorium, with upholstered chairs, in the building that is free to the citizens. If one wants to talk politics in the auditorium it costs money for rent. If it is a civic affair rent is free and the money for the lights and heat comes out of the profits from the utilities, Mafor- Loy, an oil man, who has been hard hit by the depression in the stripper oil fields, explains that the city ownership idea also in- cludes control of the omly cemetery. Sale cf lots and a mausoleum makes this a profitable investment, Mayor Loy explains. Funds for a municipal band and the public library come from the earnings from the utilities. Eight policemen and the fire depart- ment are all financed by cutting a slice out of the profits of one of the utilities. Mayor Loy believes that the success of the no-tax experiment has made for a better law- abiding spirit. Although Chanute is rather a large Kansas town and is surrounded by an oil and farming territory, there is very little work for the police to do. The chief of police was found sitting in his office, and a large radio was turned on in the - police station. The policemen were leaning back in their chairs listening to a preacher delivering his Sunday morning sermon. Pines so far this year are only slightly more than $200. Mayor Main street of Chanute, %3 Loy said these were almost all for liquor cases, E. A. Pearce is superintendent of the eleetrig plant. IS success has atiracted wide attention snd he has written a pamphlet. The doors arg always open to the public at the light planty and every stranger is shown through the plant, a homey-looking place, surrounded by trees anq manned by men who are glad to see you and are anxious to explain how all the machinery works. E. M. Flannery is manag°r of gas and wateg plants. Municipal ownership of the utilities is not new thing in Chanute. The gas and wal plants have been municipally operated for 3¢ years and the electric plant 26 years. But it hag been only in the last six years that the plant§ were put on a profitable basis. This was under the administration of Mayot Baughman, Modern methods were installed m the plants and the mayor demanded the utilitieg be placed on & profitable basis. As a result the tax load was lifted from nh‘ citizens this year. The mayor's job pays only $1.200 a year. 'rh. city is run something like a big corporati There is a meeting every morning at 7 o'ck:: ,where any complaints by the citizen-stockholde ers are heard. Department heads are there fof the daily conference. Every Tuesday afternoo there is the regular weekly meeting of mayor and his two commissioners. On all the property cwned by the city, ine cluding its municipal utility plants, are largg signs reading: “This Property Is Not for Sale.¥ This is to impress the utilities companies shaf business is good in Chanute. “Removal of taxation,” says Mayor Loy, “had encouraged a closer feeling among our citiseng and people have come closer together, especiall through the medium of our great municipa auditorium in our Memorial Building. It i{ more or less a club or office for everybody if Chanute and our visitors as well. “We have proven that the right kind of government can make utilities a profitable source of income for the municipality, mean< while holding down rates as low and in most cases lJower than any other city in the Staw of Kansas.” ! HE municipal airport—paid for out of wtilde ties profits—consists of 160 acres, and hag a hangar and other improvements. There 3§ daily service north and south out of Chanutg by air. Chanute holds an election once a year. The mayor and commissioners are elected for threg years, one being up for re-election each yeamy In this way the record of the administratiog comes up every year for approval or disape proval. Paying the light, gas and water bills is & family religion in Chanute. All three bills are paid at the same time at the City Hall, which is in the Memorial Building. The fire and police departments also are housed in a part of the bullding. The “white way” and all street lighting arg given to the city free by the municipal plang, Public buildings also all are lighted at no cost coming out of the general fund wcumuhtd from the utilities profits. The city has $514,248 invested ln its electrig plant, which is clear of debt with no outstande ing bonds. The water plant and system is vale . ued at $557,908, against which are $161,417 d bonds being retired from earnings. The $194,000 gas system is free of debt. Seven years ago city taxes were $13.91 om each - $1,000 valuation. Taxes started dowm from then on. Now there are no city taxes, n¢ gasoline tax, no eity auto license tax, no mere, chants’ tax—no tax at all. The net municipad profit for 1930 was reporfed by the city a8 $164,000, S