The Birmingham age-herald., 1910-12-20

nation among the mourners.
 The hearse, which was demolished, was the property of E. A. Bradford & Co.,. oolored embalmers, who gave the details Of the accident.
 works system has an estimated annual deficit of $1195, while the electric system has an annual deficit of s2S0. The com bined deficit is loss of about s1475. If the credit for public service be omitted, and not lay aside allowances for depre- ciatlon, the cash deficit is about s36sO per year. This probably explains why some current expenses were paid out of the bond issue last year.
 "phere is an excess capacity at the light plant which would bring a good return of additional load were obtainable. The load factor is very low at present. This in- crease could probably be obtained in Bir mingham if not in North Birmingham dis tIict and only part of the operating ex penses increase with larger load. What is therefore needed at present is increased load, which means increased profit. The investment has now been made in the plants and the only hope of paying inter- est, proper income, and depreciation is as outlined above, with increased econo- my in all departments"
 Comparison of Costs
 In speaking of the comparative cost from the municipal plant and the charges of the Birmingham Railway, Light and Power company, MT. Knowles observes:
 There is but little difference in the rates. especially the electric service. The latter apparently has a relative greater income It is stated that there are few customers of each service in North Bir- mingham who are served at less than the established card rates, but this does not affect the revenue materially. More i'm portant, however, is the high cost of ser vice to distant consumers with adequate returns or probability of increasing the number to meet fixed charges
 Temporary Repairs
 The report of Engineer Knowles is launched upon desire to untangle the proposition temporarily. He intimates that until a final determination has been reached as to what will become of the plants, certain repairs might be made. In speaking of the present reproduction cost of the water works system he gives this table:
 Water works system ..............$94 l10.oO With depreciation of ......-..... 1b.450.OO Makes an estimated value of...... 7s,66O.Oo The estimated present reproduction cost of the electric light and power system Is: ::
 $43, GO With a depreciation of ...... 14,290 co Present value ..........'... ..''..''.' zo'oD,W Tn regard to the electric service. The capacity is more than equal to the load. and it Is possible that some rearrange- ments of this could be made to economize and make the plant more efficient"
 In speaking of what 1t will cost to re- model the plants and make them efri- cient he says
 .sTbe amounts are $56,000 for water ser vice and s4o0O for electric service. Of these amounts, because of the undesira- bility of further developments of these works, it is believed that total of s2SSs would be sufficient for present purposes until A final disposition of the works be determined.
 Tn tabulating the various bond issues of the city of North Birmingham to handle the water works and electric plant ac- counts MT. Knowles says;
 "The town of North Birmingham must have approached the limit of their credit on the issue of bonds, having a total amount greater than any addition to the city and amounting to $442ooo of which seo OO0 is for water works and electric light plants. In addition to this s1so,0oo there were some portions of s35,ooO entitled for street improvements issued August 1. 1904, which from the statement of the auditors report was used also for water and electric purposes. All the bonds bear interest of per cent, are of denominations of $500 and are issued for 30 years"
 Well to Permit Sale
 After pointing out various reasons why the handling of the system at North Bir- mingham would involve a great cost and risk besides netting the city little if anything, Mr. Knowles concludes his -e- port by setting out the fact that if some company would purchase the plant at its reproduction value 1t would be well for the city to permit the sale. He says regarding this feature;
 "Unless there be some question of pub lie policy not now considered. it seems as though it would be best to dispose of the works at their appraised value with proper allowance for their development and good will and thus avoid the annual deficit which now occurs"
 Inaccurate Records Kept
 MT. Knowles In the report brings out