The times. [volume] (Richmond, Va.) 1890-1903, 1897-06-27

fund is being set aside to redeem this
borrowed capital or to provide any fund
put of which to construct the works at
the expiration OF their life period. which.
as We have seen. is n very short one.
nor do they show that thc works con-
tribute one cent towards the taxes oil
the city. In the hands of a private own
CT or OF a corporation. conducting IFS
business on business principles all these
items would be provided for and only
after such provision had been duly met
out OF the income produced from the
works could they be said to be a pront-
able undertaking. TIL published accounts
do not show what the works have cost.
The only information given on this head
Is that the nance committee value them
n. 81 o 600. Taking this figure as a basis
for estimating the charges which ought
properly TO be made against the gas
works undertaking In order 90 ascertain
their value to the city II would appear
that SIS. 600 ought to be set aside eacn
year I'm order TO provide for interest and
sinking fund on this debt. This assumes
interest TO be payable only AZ the rate
OF 5 per cent about half the city's debt
carries 4 per cent and the remainder IS
subject TO varying rates. up 10 $ per
cent?. The sinking fun ~ calculated on
the basis OF n 4 per cent accumulation
for 30 years. A five per cent dsprecia-
ton fund would call for tho setting aside
Of $4,000. Upon this basis the life or
tho works IS calculated nj % years.
which is a very liberal estimate as shown
by the experience in Huddersield.
The annual sum required to meet the
piesC-t city tax on n capital OF N.vfl"VD
is $4,000. The total OF the charges. these-
fore. which the gas works h1uld meet
- - 1T -, - 81. rn-+ nf mil
ing end istributing the gas before the
works car properly be said 70 be raking
n profit In reduction Of tho taxes Of the
city are therefore as follows.
Interest and Sinking Fund. .... 5 N,0-o
Depreci1tiGn... ..........'- .'- oo.uVp
Taxes. - >. -. 3. ....--. lf'Vo
Total 1z2Vo0
Towards this sum the works according
10 the published accounts. last year o
tributed sl7.53S IN cash and S2iO5i In gas
supplied 10 street lamps and public build
ings. or n total altogether OF Sl.5e2. leav-
ing n deficiency Of $50. 40S. which had TO
be provided out Of the taxes Of the city.
Surely the taxpayers Of this or any
other city would not like 70 AVE many
such profitable undertakings carried on
by It's local authorities. Is there any
wonder that under such Management tho
CITY sinks deeper into debt year by year
and that capital fees from II and our
business interests languish n fail. And
vet in the face Of such n showing rs this
petitions are now being signed for. and
a portion OF the local press urging a re-
duction I'm the price % gas. Whit should
be demanded is n reduction In the cost
OF making and distributing gas 50 that
the works NAV make good the deficiency
now existing year by year in the ac-
counts and that the general taxpayers
should not have 70 supplement the earn
in2s OF the works by n sum half as
grea, rs tho gross earnings Of tho rnder-
taking every year - .he works hete wo"e
MANAGE by the citv council uoon The
Ike business principles NJ the Hudder'
field gas works and the works them
eolves were carried on undcc cho direction
OF a scis ltifc and experienced eas engi-
peer and the whole business conducted
5i business principles az by = private
Individual or a ompany directed by
business men without regard - nolirr-
ia,s and their wants. then the Ike TO-
suits could be obtained here as IN Hud-
derSHeId. whore. as T have CT own. aftcr
making provision for meeting all tho lke
charges. 7 claim ought 70 be made arairSt
This city gas works n clea- pro0t ~
reduction Of the tax rate ~ over SOU"