The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-07-05
s4S1.45n
g a5n 600

1.-THE calculations in the foregoing table
are based entirely upon present surplus
earnings Of the company, amounting TO $780,
Co., which included the proposed increased
hydrant rental. No account has been taken
in the past has amounted to between five
and ten thousand dollars per annum
1.-THE operating expenses of the company
are fixed at $4,000 per annum. The city of
Louisville operates a large and more ex-
pensive plant with more than twice the
number of consumers. for $76,344 per an
mum.
eff the payments of principal and interest
are made quarterly, as proposed, the debt
can be paid in less than twenty-five years
The foregoing figures are based on actual
payments.
''If the city acquires the property under
this plan, the total cash paid out of the
city treasury will be as follows:
Cash payment .....................$ 5000. 900
$12O. 600 per annum for Twenty-Five
years for hydrant rental............ 5000, 900
Total cash payments out of city
treasury ............... ...........$ 50, 200, 900
To ascertain the cost of the property
to the city, there should be deduct
ed from this sum, the hydrant rem
tai, which the city would pay if it
does not purchase the property:
theVcity is now paying $780, 900 per
annum, which, in twenty-five
years, amounts 81, 900. 900
Actual cost OF property to the city s., 200, 900
by acquiring the property now the city
will receive the benefit of the surplus rev
enue OF the company, over and above the
nual installments of the debt, amounting to
about $4,000 per annum, as shown IN the
foregoing table, under the head of Improve
ment Fund. AS this sum will be expended
in improvements and betterments 20 the
property Of the city, or In the reduction of
the debt. it is fair to deduct it from the
annual cash payments made by the city
Under this plan the city will be required
to pay:
Hydrant rental. per aHnum 500 900
Deduct Improvement fund, per an
mum .'............. ...'................ 10000
Net cost of hydrant rental per an
mum, under this plan ............... 500 Goo
IF the hydrant rental increases at the
city will be paying $4,000 per annum it
is not, therefore, unreasonable to assume
that the average hydrant rental for the
900 per annum.
I'm estimating the cost of the plant to the
city no account has been taken of compound
ing the twenty-five-year period for the rea-
son that by deducting the Improvement
fund Of $4,000 per annum from the in
drant rental is below the estimated average
for the period
1T will. therefore. be seen that the BAL
debtedness of 50. $4,000 and 81. $50 .0fn which
is TO be paid by the city, is So $50 600 and this
Will be provided for exclusively out of the
surplus earnings of the water company in
addition to paying all interest on the debt
and providing sum of $4s1. 450 for improve
ments and betterments.
Perhaps the best way to determine the
present and future value of the water
works would be to compare it with other
water works located in cities of equal
population. and probably the city OF Low
isville is one of the best with which 10
make comparisons.
According to the census of 1890. the city
Of Louisville had population of i6l l2S;
am not informed as TO its present popu-
lation. The Official report of the Louisville
Water Company for the year ending Dec
81 1897, "a corporation owned and controlled
by the city of Louisville). shows the follow
ing facts concerning the number of miles
OF mains. revenues. operating expenses. cos-
of plant, etc, and in comparison with the
Indianapolis Water Company, are as fol-
lows:
indianapolis Number of miles
OF mains ......:..................... 1s2
Louisville Number of miles of
Indianapolis Number Of con-
SuHlerS ..*~<.--.. LOO
Observation-Disclosures Of con-