The Richmond palladium. (Richmond, Ind.) 1906-1907, 1906-05-22
THE REPORT OF
LIGHT COMMITTEE
Continued from Page

(COntlQu6Q from rage
charge of sixty-five dollars per arc
light for street lighting.
In the report of Mr.. McMahan will
sets and liabilities. This shows a
gross deficit up to april first, 1906, Of
$15,4S8.77. This deficit consists of
three items: First, the interest on the
bonds which has accrued up to the
time the lectric Light Commission
ers assumed control of the plant, in
the sum of $4,000. Second, inter-
est on advancements made by the
city out of it's general fund, comput-
ed at $5,171.S3. The method of this
computation is shown in Mr.. McMa-
hans report. AS matter of fact this
interest has not been taken account
of by the city and therefore could not
be shown in the cash receipts and ex:
penditures year by year. The differ
ence between the total cost of the
plant and the amount of bonds out
standing is represented by advance
ments from the city treasury. The
total of these advancements has been
$S5,342.21. The plant has paid back
to the city and the same has been
covered into the general fund, $751;
999.S4; the net amount of the city's
advancements is $53,34237. The third
item of the deficit is $S,15694 caused
by depreciation. The city, therefore,
has invested in it's municipal light
plant the sum of $197,34237. 1t has
to show for this assets with a present
value of $1s1 1880. At the present
rate of gain the deficit should be
wiped out within the next two years.
The Present Physical Condition OF
The Plant.
The report of Mr.. Matthews before
published gave a detailed account of
the present physical condition of the
plant. In it number of recommen-
dations are made to which the COM
mittee has given attention. The first
and most important of these is the
recommendation to install "a unit of
capacity such that in connection with
the smaller of the present units all
existing demands could be met, with
a reasonable margin for growth of
business" Mr.. Matthews further
stated that this would afford oppor-
tunity to keep the spare unit in first
mise the danger of breakdown with
all the resulting dissatisfaction and
loss of business" Without presum-
ing to make a more specific recon-
mendation than this just quoted, the
committee is of the opinion that the
installation of an additional unit is an
improvement of urgent necessity up
on which the present safety and flu
ture development of the plant depend,
yet it does not recommend the outlay
as that is a mater of municipal ex-
penditure to be determined by the
condition of the city's finances. TAX
en- as whole, the report of Mr.. Mat
thews shows a favorable condition
existing and his further suggestion
in reference to changes are submitted
in their entirety without comment,
save in one particular. Mr.. Matthews
criticises the conditions at the in
take. In the opinion of the Commit
tee. it would be necessary, in order to
remedy these conditions, to purchase
some outlaying ground between the
plant and the river. At present the
property of The Richmond Light,
Heat & Power Company joins that of
the municipal light plant and pre-
cludes pNper ingress and egress
from the municipal plant and the
river might be taken under condem-
nation proceedings. It is believed
that the city should avail itself of a
contract of purchase now had with
the Richmond Light, Heat & Power
Company by which that company
agrees to sell to the city the parcel
of ground referred 20 for the sum
of One Thousand Dollars. Unless this
land is acquired, 1t may be made use
of by the Richmond Light, Heat &
Power Company in such a way as to
interfere with the proper and econo-
mical management of the plant
The Outlook For the Future.
Provided no extension II granted