The commonwealth. (Greenwood, Miss.) 1896-1923, 1904-03-26

Tax for 1903 ............. 1861. 2
Premium on Boiler Insurance
for $4,000 $50
Total Of items added ..a...... S ,S26.2t
These additions make the total oper
ating expenses for the year ending Feb
ruary 20, 1904, $l0,35O.73, which amount
subtraeted from the total e for
same period, SlS,013. If, leaves as til,
net earnings for the same period the
sum Of SS,5G2.3S.
The City, by Article II of the con,
tract, has thirty days, after the filing
by the Board Of this award, in which to
notify the Company whether it will
elect to purchase the Company's prop
crty. And If the City elect to purchase it
shall then have six months in which to
pay the purchase money. This would
make the payment due not later than
seven months from the date of the filing
Of the award. As the Company is fran
chjsc will expire almost exactly twenty
three years from the last date allowed
for the payment Of the purchase money,
the Board decided to fix the sinking
fund period at twenty-three years; and
the Board also decided to fix the inter-
est rate on sinking fund deposits at 4
per cent.
The yearly contribution to a sinking
fund, which deposited mt A per cent,
will eXtinguish a principal of $4,000
in twcnty-three years, is S2.73 ITO or
2.73l per cent.
The last question remaining to be de-
clded was the rate of interest to be al
lowed in addition to the sinking fund
rate of 2.73l per cent. in the capitaliza-
tion OF the net earnings, in order to OBJ
tain the purchase price"
Much more time was given to this i'm
portant question than to any other, and
after long elaboration the Board finally
fixed the rate at six per cent. Adding
this six per cent to the sinking fund rate
Of 2.73l per cent. the rate of capitaIiza-
ton of the net earnings becomes 1871
per cent.
Dividing the net earnings of $S,5G2.3S
by S.T3l per cent. the Board finds as the
appraised value of the property, referred
to as purchase price" in section II of
the Contract, the sum of S0S, 0GS.72.
The physical value Of the plant, esti-
mated from the cost of reproduction less
depreciation, is fixed by the Board, at
.SG0,3i2 for the water works plant, sew
er system, and electric light plant. To
this must be added the physical value of
the real estate owned by the Company,
which the Board has fixed at $1,G50,
making the total physical value of the
property S7O,092.
AS the appraised value or purchase
price fixed by the Board, is made up of
the physical value, going value, and
franchise value, the purchase price"
less the physical value, is equal to the
sum of the going valus and the franchise
value, which will amount to S27,076.72.
The Board should here state that in
case Of purchase, title should of course
be made clear to the entire property. The
following are items to which the Board
would call attention:
/ A certain decd of trust, involving
the entire property, which is on record
in Book 80, page 10, of the records of
Land Deeds of Lelore County, which
Deed of Trust is to secure a $4,000
bond issue.
: Perpetual right of way or easement,
with right of entry, for a certain line or
lines of pipe extending across the prop
erty of c, E. Wright, to the Reservoir,
from Lot 81, Block II, Henry Addition to
the City of Greenwood. The physical
value of real estate fixed by tho Board
at 81 $50 included tho value of the lots
ON which tho pumping station is built,
the uncNplred lease on Lot 81, Block IL,
and the easement above referred to.
= The Company shall protect the City
against all claims whatever for unpaid
bills of the Company, including those for
labor and material in the plant, il any
such exist.
4 The Company shall be entitled to
all revenues earned by the plant up to
the time at which the purchase money is
paid, and shall control and operate the
plant under its existing ordinance up to
that time.
The Board has not, in Its award, in
cluded any allowance for supplies on
hand, and these, except Station Tools,
are to remain the property of the Com
pany unless purchased by the City, as n
secondary transaction.
In conclusion the Board, as previously
stated, fixes the purchase price at
Ninety-Eight Thousand and Sixty-Eight
Dollars and Seventy Two Cents t9S,08s.72)
To this amount, il the City purchase
under this award. must be added the
Twenty Five t25l per cent as provided
in Section II of the appended contract.
Respectfully submitted,
DaBNEy ii. MAURy,
A. l.. DABNEY,
WM. +. WILCOX,
Board Of Appraisers.