Wauwatosa news. [volume] (Wauwatosa, Wis.) 1900-1948, 1907-08-10
MUNICIPAL OWNERSHIP.
Some Projects That Have Failed-Costly
Experiments in Lighting.

Among recent municipal ownership fail
ures may be enumerated:
Muncie, Ind, plant abandoned and
bonds not paid off.
pany.
Elgm. ILL.,. municipal costs SO high that
reoHtract was let to company.
Jonesboro, Ind, plant turned over To
bondhoders.
Alexandria, Va, plant leased to com
pany for thirty years.
Ashtabula. o.. SSS 900 plant depreciat-
ed $4,000 in fourteen years, advertised
for sale.
Brunswick Mo. plant sold for thirty
five cents on the dollar, city taking pay
in light and water.
Casselton, \. D.. plant sold for two
dfthS cost.
SLOAN Springs, Ark. $4,000 plant
leased fol $GGG ii year.
Peru, Ind, council investigating com
mittec found arc lamps cost $20T q year
and advised that the city abandon the
business and sell the plant.
Linton, Ind, plant leased for five years.
Hamilton, o.. gas plant shut down and
state examiner reported Jeplorable finan-
cial conditions and abnormal costs due to-
faulty construction in electric light plant.
Bloomington, H.. incro1se from %5S TO
So in yearly cost of "re 'a,tps In ten
years, although cost sln-id have been
less.
Easton, Pa. mayor favors letting of
private contract if city cannot maintain
better service. and business men petition
for such a contract.
Lakewood, o., expert accountant found
cost of arc lamps about double the price
offered by private company.
In Massa chuSettS, according to the
1903 report of the commissioners. TWEEN
ty-four of the fifty-six private electric
1Tph4 ire. 81
paid no dividends: one paid II dividend
of = per cent; one Il dividend of per
cont: one a dividend of 40 per cent;
four a dividend of 3 per cent: elcv-
en- a dividend of 6 per cent; three n divi-
dend of per cent; eight Il dividend of
per cent; one a dividend of per cent,
and two paid dividends of 10 per cent.
In some states with some kinds of
corporations these statistics on dividends
would give little indication of the per
cent Of earnings on the actual invest
ment. because Of the common practice
Of issuing watered stock for which but
small per cent. of the face value has
been pad. In Massachusetts. however.
where securities for many years past
have been issued only upon approval of
the commission, TO pay for actual i'm
proVements in a plant, these figures can
safely be accepted as indicating very
nearly the true state Of affairs
This statement as to dividends. Of
course, does not show what earnings may
be put back into the property in the
shape Of new construction and extensions.
In this latter connection it is of interest
to note that the combined balance sheets
of the Massachusetts companies show
surplus of 1916 per cent. on the entire
capital stock in the 1905 report DT1t this
is less than the surplus showed the year
previous.
These figures simply demonstrate what
is known to every well informed man
in tie busness, namely, that electric light
companies when well managed and if in
sufficiently large towns can be reason
ably expected to pay the usual prevailing
rate of interest Oh investment. and in
some cases a little more than that, but
that there are plenty of companies which
either for the lack|of good management
or for some local reason are earning
practically nothing There is certainly
nothing in these figures to Indicate that
enormous profits are to~be~-f4oeheted by
taxpayers as a result of a municipal cleo
trio light plant ~&'Thp Wnrld Today