The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1908-04-21
equipment had been first
class ................ 22.931.15

OtdI unnecessary money
spent on plant last year. 5 39,242.20
After reading these figures, Mr..
Witherby made the following state
ment in explanation:
The receipts for the year 1907 as
shown in the controllers report just
published. We will cOncede, for the
purpose of argument, are correct.
These receipts amount 10 72.956 "a.
They represent what the plant receiy-
ed for commercial lighting and power
and also street lighting. lighting Of
parks and public buildings.
Losses Are Shown.
The figures Of $39, ,16I.57. operating
expenses are taken from Supt. Rogers
annual report after deducting the
bond interest and snow an excess of
receipts over actual operation Of $33.-
1891. Deducting the bond interest,
s5,16I20, to which must be added the
interest on the amount of money the
city plant has had TO use, which has
been taken from the general fund. and
This has averaged $5O11S21 during
the past two Years, and the city has
paid our local financial institutions
approximately per cent on this
money during this period But ad
mittlng that this had been covered by
bonds in the funded debt of the city.
the city would have been forced to
pay AT Iea t four per cent. Using this
figure the interest on this money
would amount TO $2.O07.l2. showing
an apparent surplus of $26.02l05.
The controllers report shows that
the Lincoln judgment has been paid
and that this is a proper charge
against the light plant operation. Had
the city not been in the lighting and
power business the city would never
nave been liable for this Judgment.
Deductlng the amount of this Iudg-
ment. s3,646.44. makes the apparent
surplus $20,374.61
1T was Prof. Matthews of Purdue
university who stated that s per cent.
depreciation annually was fair fig
ure, although light plants usually have
~ per cent depreciation annually.
rake the per cent depreciation basis
on plant account of $247,303.0a, we
?. II
plus of only s590.37
The Light. Heat & Power companv
owns up TO the fact that il has certain
amount of repairs on meters. trans
formers, arc lights and wire and as
the city light plant charges these
Items 10 construction and betterment
accounts, it is only fair to deduct at
least this much as the city light plant
has fully third more business than
It's competitor Charging this repair
account as against operation, shows a
net loss for the year of $271.S7.
IF the municipal plant was a pri-
vate corporation it is fair to estimate
that it would annually have TO pav
5000 in taxes. This is certainly a
fair estimate on a plant value OF
$247 7.303.09. Adding this 1000 in esti-
mated taxes TO the net loss it would
give the net loss at $2,27l.S7.
Savings to the City
I'm the offer made by the Light.
Heat and Power company, April ,.
1906. the following statement was
made: We will make a contract with
the city to furnish its public arc light
ing, using the same type of lamp that
the city is now using. of the same
power, at a reduction of $40 per light.
per annum, from the price now
charged by the city plant TO the city;
same lamp for $65 per light, per an
mum, the contract to be for any term
OF years designated by the proper au-
thorities'
The city is using an average of over
300 lights but assuming the actual
of be 300 at $40 per light, |
would be $4,000 per annum, which the
city could have saved had it been
dealing with a private corporation.
from the income or added as an ex-
cess expense. Adding this figure as an
excess expense it leaves a total loss
per annum of $5.271.&7.
1T is perfectly proper that a light |
ing plant either owned by the city or
a private corporation to make exten-
sions and add to its equipment from
time to time and under the item
construction the city
plant has spent during the past year, |
according to the controllers report, |
s11,901.42. From this amount must be !
deducted the amount charged TO re- |
pairs SS62.24, making an actual |
amount properly charged to this ac- !
count s11,039.1S, and to complete the |
payments on the new unit, an amount !
If So, ,93115. These two cOnstruc- !
lion items plus the total net loss, !
s5,27fS7, make the amount of s39.242-
20 of the fax payers money that was
spent unnecessarily by the city the .
past year just for the pleasure Of
owning a municipal plant