Hutchinson gazette., 1902-02-13

per cent basis. They also Insist lllNl
their property has been assessed by
the engineer at It's actual cash value,
and that If the city wishes to pur-
chase the property 1t should not de-
mand to have II for less than It's act
ual cash value. Against these argu-
ments Is the decision OF the commit
tee, and of the people generally, that
the city cannot AFFORD to purchase the
property at a price which will render.
It impossible for the city to carry out
the reforms and pay for 1t as above
specified. "
"As to the value Of the property,
1t Is urged that IL Is old, second hand
property and should not be considered
except at greatly deprecated prices,
On the other hand, that the city Is
not only to have the property but It's
established business at intact, ready
for operation, with all of It's present
customers, connections made, books
In order, contracts signed; in short
a going concern, with u business in
addition which would require years
for a new plant, If practical, to estab-
lish. The price fixed by the repre-
sentativeS Of the company as their
very lowest price, allowing the twenty
thousand dollars in cash, Is three
hundred thousand dollars. The fixed
charges at four per cent Interest upon
this amount would be twelve thousand
dollars. This Is about three thou
sand dollars per year more than the
present contract obligations on the
present basis. The fixed charges are
therefore practically equivalent to the
net income, as shown by the COM
pany's books for the last year In
arriving at the net income the com
pany charge to expenses certain Items
for improvements (not repairs, taxes,
stock on hands, foreign manage
ment, which II deducted, raises the
net income ON present business ac-
cordlng to the engineers report and
the showing made by the examination
Of the books by the committee, after
allowing five percent Of gross receipts
as an additional precaution for wear
and tear, to about seventeen thous-
and dollars. With the improvements
paid for as above specified, the busi-
ness Of the gas plant instead Of loss
of n thousand dollars per annum, 1t Is
said will show gain Of two thousand
dollars per annum. That the electr-
cal department on present business
will show a gain or SAVING of expenses
alone of fifteen hundred dollars per
annum. These two items would in
crease the net income ON present bus
mess to twenty-one thousand five
hundred dollars. Deduct the rents
paid by the city, which are nine
thousand dollars, leaves twelve thouS-
and five hundred dollars per annum
to meet the interest charged, BY the
figures obtained by the committee
from its examination of the books Of
the company for the separate years,
which is appended hereto, it appears
that the company last year made
about the lowest net income of any
year of its business, as shown by the
books. These reports also show that
while under the management of the
company before ii passed into the
hands of the bond holders. when the
property was in charge of l.. A..
Becbc. that the total expenses were
about eighteen thousand dollars per
annum. That the expenses of the
management have been increased from
eighteen thousand dollars, to about
thirty-one thousand dollars per an
! num- llhll III ldNN lllt llNlN"'N VI
expenses has exceeded the increase of
business, although that appears to be
quite large,
If the figures above given are cor
rect, and we believe under municipal
control that the city can do equally
as well or better the proposition
would appear to bea desirable change
from the present condition.
am not making this statement as
an official but individually. | wish
to give such information as | have
learned by putting in much time in
examining the question. 1t Is my in
tention in II short time to visit a
number Of cities in this State where
they own their plants, and inveSti'
gate with the city officers, the condi-
tiOns, such as expenses, charges, etc.
1t may be interesting and useful f0l
our information in deciding the queS.
tiOn, and this information shall give
to the public as soon aS | have an op.
portunlty to make an investigation.
| Concerning the purity of the water
it is a well known fact that the water
| furnished by the company for tho
past nine or ten months Is not pot
4 LII. Ia. .,,s