Orleans County monitor. [volume] (Barton, Vt.) 1872-1953, 1908-06-01
MUNICIPAL ELECTRIC LIGHTING.
Other Problems of Accountancy.
PART III.

achieved by the munlclpal electric
lighting undertakings will be compared
with the results obtained under private
ownership. Municipal ownership IS
really thus far an experiment to find
out if people are better off that way
than the other way. In England, as
a rule, they compare profits with
profits in this country generally" we
compare cost of lights with cost of
lights and judge the success or failure
accordingly. To get just basis OF
comparison, to be able to really know
how our experiment comes out (and as
regards the general body Of citizens
there is nothing gained in knowing or
pretending to know anything else, we
need to have the accounts especially
the income account-kept according to
a suitable form. Mr.. Harvey S.
Chase, president of the incorporated
Public Accountants of Massachusetts.
has worked out standard form of
income account which both private and
public electric lighting plants should
use for the purpose of fair and scientific
comparison. | cannot describe and
explain this form here as it would
occupy too much space. The reader
may look it up for himself in the "Mu-
nicipal Journal and Engineer" for
December, 1906.
The auditors recently employed by
the city have in their reports on the
electric light department used wholly
different form for their income &C
count than Mr.. Chase's. 1t is not a
matter of mere difference in form
which is involved. the reader will
understand, but a difference in eco
nomic interpretation difference in
the logic of accounts. AS a result
they make accepting their figures
without question: a larger apparent
net loss for the city in two of the
years than has actually taken place.
The fault is indeed one of ambigul ty
merely; but, then, ssthat is serious
fault, for accounts should speak in a
language in which anything ambiguous
met loss for year. should be extended
in each year to read met loss for year
for the Department. ;" then. con-
siderable deduction being made, in
1905 and 1907, I'VE should get met loss
for year. for the city," This last is
the really significant thing which the
citizens want to know. What the book
keepers loss for the department as a
department may be, is not of special
interest.
Some of the political personages
of our city would slike to .have still
further deductions made-alleged ad-
vantages accruing tolprivate consumers
Of Observation-Disclosures offsetting
so far forth, as they regard it, the
loss to the city. That sort Of reason
ing leads into the realm of pure con-
lecture and takes us too far afield in
every way. What the city hasl lost
it has lost, andIifiin the processtof in
curing that loss it has bestowed {
boon on some of the citizens. the1
other citizens have beenspaying for it
The "pdblic purpose. for which thu
enabling act was passed was to cheap
en- the street lighting expense fo
which is a proper public charge in
! Cured for the benefit of all the citi
zens.
The city was permitted to manufac
ture and sell electricity for privat
consumption in order that it Nigh
have a chance (for engineering rea
sons) to succeed in its project of SELF
supply of street lighting. The com
nlercial lighting was side issue
permitted by-product- make tn
main business pay. 1t looks as if tn
loss on the by-product ihad simpl
served to make the loss on the bushes
as whole greater. But if indeed
can be shown that the deficit onI tn
whole business and the nomins
charge (appropriation) for streetIlight
gard to the quality of the lights, les
than what the street lighting woul
have cost if the city had purchased
of private company, then there hs
been a gain-a legitimate gain fl
the whole body of citizens.
But to return to our muttons.
was said at the outset of this artic
that we needed.to Lhave proper form
of accounts in order that we may mal
valid comparisons between the Epe
Torrance under private ownership al
under municipal ownership. 1t h;
been seen also how the department
point of view and the point of view
the city may get so tangled that v
cannot tell where we stand. To avo
these entanglements and = to gil
cleanness of vision all around and so