The Providence news. (Providence [R.I.]) 1891-1906, 1901-12-14

/ W 'HlllNltiflfl AAHlliE. nc NdNlhE ~
consumers and profits 60 tax payers come
mainly from incsudescent lighting. Not
! tniil cities undertake the work can We
| hope Tor such low rate that the use OF
electricity can become universal anu the
homes aud shops be Sbundantly supplied.
not only with light, but also with power
FOR All small machinery.
Having considered some OF the main
elements which enter into the cost OF
electric lighting let Ms now take up the
figures gathered by the United states
labor bureau There are II tables OF sta
iisIics relating 10 electric plants. which
include data FOR s52 plants OF which 320
are municipality owned and So are opsr-
ated by private companies.
Every possible cndeavor was made 10
set all the minute details which could in
any way affect the conclusions OF those
who wished 10 make use OF these statis-
tics.
Many or the facts shown are very
striking. For instance under the table
which shows the distribution OF cost OF
production IN municipal plants for light
ing and other purposes It appears that
quite generally tlL~-rost OF production eN-
leeds the income from private users in
which case there iS q difference. showing
the cost 10 the city OF electricity used for
city purposes. I'm some plants. however,
the income from private users exceeded
the cost OF production aud in those eases
service. but the results OF the years
operation show proht.
FACTS AND FIGURES
The table which sets forth the profit and
loss I'm private plants presents some most
remarkable figures. While certain plants
are shown as having been operate at a
loss during the wear for which report was
made. fN plants. or about 6s per cent,
show net profit on the total Investment.
Ia other words. these are the fgeres OBJ
come derived from the public lighting SER
vice. from the commercial lighting service
and from III other services. the total cost
Of production. including estimated depre-
citation and taxes.
pf these AnS- private -plants l43 nlanisi OF
q per cent. show a net profit of over
per cent. lls plants, or ~ per cent show
4 net profit OF over 10 per cent: ~ plants
or f. per cent show a net profit OF over
T. per cent; 81 plants a net profit of II
per cent: - plants a net profit OF 20 per
II net profit of ~ per cent; net
proht Of ~ per cent; net profit OF
a. per cent: net profit of over 10 per
cent and one plant net proht OF over
80 per cent Furthermore, these ngures.
as before stated, Include deductions for
estimated depreciation aud taxes.
Altogether this table Is wonderfh
proof OF the immense Drofits which a
large proportion of the private electric
plants are cuioying. and il striking ar
gnment In q ror 0f municipal ownership.
or llfrf immense lii0lllr IlfHn WI Ahf
one hand payment oflialge dividends 10
the stockholders result by which the
general public Is not directly benefited at
All. and ora the other hend the accunltla-
tion of large surplus on the part or the
companies. partly ~ corruption fund
with which 10 obtain extension of fran
chises and MANY other privileges bN me
manipulation Of legislatures and councils.
PUBLIC AND PRIVATE RATES.
Table 10 deals with the maximum and
minimum prices charged hy private
plants To- private users and to the city for
light and power service. while in case of
plants il shows the maximum
and minimum prices charged 10 private
users for service and the cost 10 the city
OF its own service. Prices are here given
for the two kinds OF service, arc lighting
and ncaudescent lighting
\ great variety OF prices was found un-
der both the arc and sneandescent service,
depending upon the econdtIons such as
the hours OF service rendered, the number
OF lights furnished, etc. In the arc service.
however, II was found that most plants
furnished lights on the basis OF an "all
night or moonlight schedule aud con-
sequentk IL was found possible 10 com
pute the total kiloNatt hours OF service
rendered
owing 10 the difficulties already men
toned "a 10 comparisons between ndi-
Nidual plants regarding prices sewers.
tables were made bringing to-
sether by groups all OF the facts which
could properly be- brought into comparl-
+4--i44are-haias -<lAlaen- grnlluK- n-earh-
table. These summary tables show that
under all tho various conditions which
are found. almost without exception the
prices charged by cities for lighting both
to the city and to private companies and
individuals are smaller than the prices
A..
and TO private individuals aud companies
FOR the same service. IN some cases tho
prices being less than hair those charged
by private plants
Fearing in mind that these figures were
collected by strictly impartial authority
In most thorough manner. that they are
ossed OF reports from a large proportion
lf the electric plants of the coun-
.ry both private aud municipsl-that
very possible item which could AFFECT the |
result has been taken into consideration.
Ne hnd the proof is overwhelming aud
ibSolutelv conclusive that the rate, for 4
electric lisht service are smaller under I
'ublic ownership than they are under prf- /
ate aud n some eases much smaller.
The reasons Tor this are perfectly evil /
ieut upon reflection. ln the nrst place .
titles are uot obliged To pay taxes a. has \
been shown. Furthermore cities can noat 4
private conuanN since the whole assess \
'hlc property of the City g. generally Tor \
hc payment uf interest snd principal.
while company can give security only
'u the works
Another reason H. that most contracts
or city works are awarded only sfter
'el advertised calls for bids. and must
ben hc given % the lowest bidder. Sci.
lon Is private work publicly advertised.
CoRRUPTIoN AND FRAUD.
Opponents of city ownership claim that
Z tends to increase corruption because n
DDS az army ~ employee 90 the politi-
az machine. u must be admitted that
here is considerable truth in this. l. A
rue. however, that corruption il more |
'reVslsnf uader public than under private
rross VINO havr had recent
Nperieu"e ln legislative bodies or who !
ave watched the current of events care
uhy from the outside would hcsltated
. endorse any such view
Private ownership st the present dav |
1eans ownership by very wealthy and |
owcrful corporations which bv all the |
Its Known g. 'hs sVscsysfui pslitlCiaB, |
1CoDl14sa an PAAs Eixs,