Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1910-11-30
COMMUNICOTED.
FACTS KEPT FROM
The TAX PAYERS
Lighting Plant Actually Los
ing $4,000 a Year.
The Dimes-Recorder:

CITY.
Gentlemen: Your paper of yester-
| day contained pretty fairy story
about the fine investment the munich
pally owned lighting plant at Pasa-
dena, California, had proved.
The statement in question was made
up by the school of politicians in con-
troll of that city, anxious to make good
with the voters, and suppressing many
facts, as is so frequently done, in
endeavors to sustain their claims IN
regard to municipal lighting plants.
Here, though, is an unbiased state
ment from the October number Of
| Public Service" recognized as the
leading American Journal dealing with
municipalities in reference to electric
ity, gas. water, telephone, and other
public utilities.
Public Service" exposes the mac
curacies, misstatements, and inconsist-
encies of the Pasadena statement.
Here is what it says 1t throws a
light on the situation and puts to the
blush those who inserted the article
in yesterdays Tdmes-Recorder as an
argument for municipal ownership of
a lighting plant in Americas:
Pasadena's Municipal Lighting Situa-
tiOn.
&c. w. Koiner, general manager of
the Pasadena 0Cal) municipal electric
lighting plant, takes the critics of the
plant to tazk for declaring that the
enterprise is a financial failure and
has issued report purporting to show
that the plant is IA paying investment
for the city Mr.. Koiner's report, how
ever, does not bear out his statement
of successful operation, as, like all re-
ports of municipal undertakings, it
does not take into account charges that
private corporations deem vital IN
arriving at the financial status OF
the property.
Upon the receipts of complaint
that the municipal plant had not been
treated fairly, Public Service caused
an investigation to he made of condi-
tons at Pasadena by one of it's cor
respondents. The result Of this inves-
tigation reached the office of the pub
lication at about the same time ,9s a
report issued by the Pasadena Munich
pal Lighting Department. While the
municipal report states that the plant
us a success, the correspondents re-
pert shows that on August 80, the
day before the official report was
made, $4,000 was appropriated from
the general fund of Pasadena and
turned over to defray expenses of the
lighting plant
THE private report from the cor
respondent of Public Service states
that the real conditions of the. plant
| are being kept from the tax payers
through system of Municipal Owner
ship bookkeeping" and that if cor
rect and scientific audit of the books
of the enterprise was made, it would
show that the plant has been losing
approximately $4,000 a year.
Depreciation is ignored. Items that
should be charged to operating are
charged to construction The city Is
being charged $4,000 a year more for
its street lighting than the same SER
vice could be secured from a private
plant. The city is charged at higher
rate for it's lights than are private
consumers using the municipal cur
'ent thus forcing the taxpayers who
are Hon-users of the current to help
defray the bills of those who do use
the power.
Manager Koiner is, no doubt, sin
cere in his efforts to give his city a
profitable light plant and wishes the
brightest view of his enterprise to
go to the public.
IF the Pasadena municipal light
rtment will make q financial re
port showing the proper amounts set
aside for depreciation, interest eharg-
ed off for the construction period, a
proper sinking fund allowance for in
terest on the investment, and show
that the city ds not being charged an
excessive price for the current it
uses from the plant, then, IL there Is
a profit on the right side OF the led-
ger, 1t will not need to complain OF
the critics-the balance sheet will
answer for ITSELF
Tie acid test for any municipal
plant is an honest audit of its accounts
such as the stockholders of a private
corporation demand. If there is a
reasonable return upon the investment
the stakeholder regards his property
a success. If there is no surplus the
stakeholder cannot create real di-
vidend for himself fby bookkeeping >
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