The Providence news. (Providence [R.I.]) 1891-1906, 1901-12-14
Municipal Ownership of Electric
Plants Discussed by Royal H.Glad-
ding--AttOrney Angel on the
Legal Aspect.

notwithstanding the inclemeut wealth
kr. lsst evening large. intelligent and
Hppreeiative audience assembled in Bell
street chapel a1d listened 20 carefully
prepared and thoughtful addresses on ths
general aud pressing question OF munici-
pal ownership. it's praoticabilty and its
possibilities
Rev Anna Garlin Spencer presided and
Introduced az the FIRST speaker Royal ~.
Gladding. Esq.. "a rising young attorney
of ability and promise. His topic was
municipal Ownership OF Electric Plants"
snd the irrefutable facts ana figures pre-
scented gave evidence OF the thought ana
sainstaking devoted 10 a most careful
prepars tion OF his logical and convincing =
address.
lie spoke substantially As follows:
Although the subject OF municipal own
rrship has been before The public for a
nnmber OF years it was not until recently
dhat II was possible 10 arrive Al satisfac-
zory conclusion in the ma tier, because the
necessary data were not at hand I'm
1897. however. the l.. 8. department Of
labor statistics began = thorough inves-
figation. Nearly two years were consumed
tn obtaining statistics and i'm tsbula ting
and classifying The results which were
published in December. 1899. IN volume
of nearly 1000 pages, the section devoted
20 electric light alone comprising about
$50 pages
When the investigation was begun IL
MAS felt that should there be response
from establishments representing % per
cent OF the volume OF output Il would be "A
success. " rs gratifying TO know that the
facts represent 80 per cent Of the value OF
product and must therefore he considered
absolutely representative Of the conditions
accompanying the production and supply
of electricity ny private and municipal rs
ssblishmcnts
AZ the start tho authorities gave a
pledge that the ns mes OF plants would nor
nc published In connection with the data
hurnshed or the city. town or state in
which they were located They fheTebv
secured reports from quite large proper.
nion OF private plants. both large and
small. thus furnishing facts representa-
uhc OF every condition FOR purposes of
comparison with similar public plants
COST OF ELECTRIC PLANTS.
Before taking up these figures let us
consider carefully some of the main items
which affect the cost OF running electric
plants. first as To taxes
As city pays no taxes upon its own
property the expense IL saved in muni-
sapsl ownership. But. II is claimed that
The city loses just So much income which
TT HIEnt ObtafH rr0H rnc rHXuTt0U or
private plants That argument g. incor-
rect because any such loss A. more than
compensated by the Increased valuation OF
property which follows upon increased
municipal lighting Where there is
sommercial plant Of the reduction in com.
rercisl rates Increases the profits ot
business and hence the valua tion of real
sstaie and business holdings This les.
sens the tax rate.
But this is not ALI The total cost OF
Electricity per unit sold becomes less
every year. So great is this saving i'm
al municipal plants consequent on i'm
proved machinery and the economies
mat follow. increasing output from year
40 year. that il far exceeds the highest
estimate of loss of taxes which can fairly
ne charged against municipal ownership
AnVther important element is deprecia-
ton As 10 private companies II does
not follow because they carry deprecia-
tion fund that they have actually written
any depreciation of from their capital
investment. The proper method would
be TO deduct depreciation from the capital
and TO add new construction at the
end OF the year a new net capital invest
ment but as the companies are usually
stocked and bonded AT high figure n is
of some advantage 10 them To keep add
1ns new construction 10 their accounts.
thus actually Initiating their apparent in
eestments.
trolIed by such conditions It's stock
hnlders- -Ihn La \ IA IA4iE-.l4Al
dendS al once Tor private purposes in thr
form OF low taxes or low charges II m.
r'ty Is Ca take account OF deprecia zion
~ all II II in the form ~ such provisions
1or the depreciation over successive wears
that the taxpayers Of no single wear win
be unduiy oppressed
Another reason why city need NOT
eccumulate a.deprecis tion fund. and vbv
y private company must 10 So n thai in
. city The entire taxable properly of the
ritizens j. liable To assessment when fbe
siFrc arrives for purchasing new ua.
,binery in place 81 Old while I'm \ privst.
company only The capital actually i'm
sesied As - liable. fu the former case
fherefore. the Increased tax rate Tor re.
placements would be 80 lnSgniGcant ss
W need almost no considera tlou. oi tb.
1sitrr a. w0ud wipe out dividends and 70.
nuce The capital stock 10 q mere specuIs.
ave Interest
IN the tables compiled by the United Z
states labor bureau the item Of iepreci.- I
lion j. very fully taken into account As
regards the amount given a. estimated /
depreciation. 30 II ONLY necessary fo ..,,.
1nat fhey represent in every case the clos-
ert obtainabie estimate OF the loss Al I
Nsiic during The year or each plant ex /
elusive ~ lsnd. over aud above the eN- /
JrupiNbfrf foF repairs and renewals. tho \
estimate heinz hased on the best iudr |
anent 81 ihs official of The plant Who fur- I
nishca the answers to the inquiries sub |
nittfd hy the department
COMMERCIAL LIGHTING.
Another element which Affects the cost
~ electric street lighting is commerrisi
sshfinc. The i,eNitable tendency % mn
ficlr1i ownership Is Go enter the CONNER
rial nsld. Every one az The cities owning
. ifntS iu NsseachIsetts has already ,dd- I
- or voted 10 ado this branch to It. niu-
,i.ltisi plant The commercial iietfIns
sn large ,ities "a more valuable thsr tbo !
S,unlic lighting and it car easily De- proy.s
trst ni'Fiicirsl rates are lower than nri- |
N9tc faies M ne shall sec presently. rhs
only failures Of municipal plants hifhsffo !
reported are those which Furnished street |
lirhilng alone. ana the So-Csiied greater
hifcers u the private companies which \
fooh the place 81 the munich pal failures
ssrs
Are lishuns s a relatively small part