The Greenville journal. [volume] (Greenville, Ohio) 1850-1918, 1908-08-20

cities. We framed a list Of questions
which were sent to the supervisor of
lighting in each Of the first twenty
cities in the United States. requesting
accurate and detailed information en-
practically every phase of the problem.
We have carefully reviewed the his
tory of street lighting In st. Louis AMI
as far as possible examined the facts
relative to the rights of existing cor
pOrations and the laws, both state and
municipal, controlling them"
In the summary of its conclusions
the committee gives briefly the reasons
for rejecting competition as a perma-
nently satisfactory method of secur-
| ing adequate service at reasonable
prices and for believing that these re-
suits may be best attained by "a pub
| lie utilities commission composed of
competent and trustworthy business
and technical men,"
The conclusions of the committee in
regard to a municipal plant are:
THE total cost of operating a mu-
nicipal plant, If operated In a business
like manner. would be approximately
2l2 cents per kilowatt hour, or about
500 per arc lamp per year and about
ST. per incandescent lamp per year.
But the danger Of partisan politics
in the management and operation of
the plant which tends to reduce its
efficiency and increase its cost, indi-
Gates the inadvisability Of municipal
ownership except as a last resort.
Municipal ownership in the place
OF public franchise grants merely
transfers the danger Of political mis-
management from the legislative body
which grants the franchise to the ad-
ministrative officials appointed by the
legislative body to operate the plant.
1.-The economy of municipal operation
and control has not yet been proved in
this country. Only two of the first
ten cities, Chicago and Detroit, have
attempted it. The experience of these
TWO cities is not such as to warrant
The statement that municipal plant
would be more economical than con-
tract lighting
I'm the opinion of the committee the
conditions at the present time are un-
favorable for the construction and op-
Grafton of a municipal electric lighting
plant for the lighting Of the streets of
the city, and it believes this function
should not be undertaken by the mu-
nicipality If reasonable rates and eff
licient service can be secured from pri-
vate companies. However, the city
should reserve the right to construct
its own plant"
Referring more at length to the Chi
cago and Detroit municipal plants, the
report continues:
Here, again, we are confronted with
the difficulty Of getting at the real
gross cost to these cities for the serv-
ice. In spite of the fact that the an
nual reports from the officers in charge
of these plants are supposed to state
cold facts and give every detail of ex-
pense connected with the operation of
the plants, a careful examination of
the books and accounts by expert ac-
countants shows that these officers are
advocates Of cause rather than dis
interested cOmpilers Of statistics. For
tunately, however, we are not COM
PEELED to rely upon the figures as given
by these officials, but can go directly
to the reports of the public account
ants"
In order to provide a basis for de-
termininE the real cost Of lighting by
a municipal plant the committee sets
forth that
"The chief items which should be in.
cluded in any true estimate of the
gross cost Of supplying lights to a city
are as follows:
"First.-Operating Cost.-This covers
not only the cost Of generation but OF
distribution and includes such items
as fuel, water, oil, wages, salaries
rent, maintenance, repairs etc. Sal
aries should include a proportionate
share of the expense of whatever de-
partments Of the city government are
charged with any portion of the man
agement of the plant. If the accounts
are kept by the comptrolers depart.
ment. then a fair proportion Of the ex
pense of that Office should be charged
to operating expenses. If the plant oc-
cupies part of public building used
for other purposes, then a fair proper
t1on OF the rent Of that building should
be charged to operating expenses. In
short, whatever supplies or services
IN oil fri Nlp
other department of the city govern
ment should be included in the expense
of operation.
Second. - Depreciation. - This cost
must be considered ON apparatus,
building, lines, lamps and everything |
which has to do with the production |
and distribution of electricity, with |
the exception of the land on which the |
building is located. The question of |
depreciation Is one on which there Is |
always a great variety of opinions. II
1t We're merely the question Of duplicat-
ing wornout machinery the percent
age of depreciation could easily be
estimated, but In the electrical busi-
ness 1t Is not the simple wearing out
of the machinery that causes depre-
citation. 1t is the progress of the art
Of electric lighting and the rapid
changes which are constantly being
made in electrical devices and equip
ment. So rapid has this progress been
that what was modern equipment ten
years ago is now largely scrap.
a piece Of machinery ten
years old but what must be discarded
In favor of a more efficient and eco
lomical substitute.
"Third.-Interest on the Investment.
This should be estimated on the basis
If the average rate Of interest paid on
ha of al /