I, too, noticed the electric arc lamp hanging near the Dietz street lamp. The Dietz #2 no doubt served as a backup. Electric service "back in the day" was not as reliable as it was in later times. The town may not have even had power 24 hours a day. In some small towns, even into the 1940's the power would go out every night when the plant operator's shift ended. He'd blink the lights a few times to let you know that in 15 minutes the juice goes out until tomorrow morning.
The arc lamp wasn't the most reliable device either. The carbons had to be changed every day and the suprisingly complex innards frequently malfunctioned. My guess is that the Dietz remained in service for many years after that photo was taken.
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