The Virginia enterprise. [volume] (Virginia, St. Louis County, Minn.) 1893-19??, 1911-04-28

With the actual value of the plants
at $4,000, 1t will be- necessary for
the city to meet the following ex,
penses as near as we can figure:
Operating expenses ...........$ $4,000
Additional expense for fuel in
lieu Of steam as now fur
nished .................... 1000
OepFecAdt1on .................. $1,000
interest on bonds less interest
on investment Of Sinking
Fund ................... $4,000
Sinking. Fund to take up bonds
In 20 years ....... 22.0OO
1ola1 ................... 1921, 900
owing to the. fact that the rates on
both the Water, & Light Plants are on
the sliding scale. it is difficult to de-
termine the gross annual receipts from
tine amount of current and water de.
livered from these plants: but it is
SAFE to say, as near as we can figure
that the earning on the basis of the
present rates will not offset the above
charges approximately within Is Der
cent.
The committee requested US to pay
particular attention and ascertain
what connection, il any. the Water &
Light Company had from the Lake to
their Water System after investigating
this very thoroughly. we found that
the company have 16-inch suction
pipe, leading from the lake into their
POWER House, but this 16-inch pipe is
not connected to the pumps; but there
was l6-inch valve ready to be put in
place as soon as the connection is
made, also foot valve upon the ground
which would be necessary to be in
place before this suction could be used
for any purpose: but there is q water
condension connection with the lake
which has no connection with any of
the water system.
Trusting this may prove sufficient to
give you the desired information. 1 re-.
main, very truly yours,
r. E. PATTERSON & co.
Virginia, Mimi, April Z, 1911
The Finance Committee,
City of Virginia. MINI.
Gentlemen:-In accordance with your
Instructions. we have perused the re-
port submitted to us in connection with
the recent physical valuation of the
plants of the Virginia Water &. Light
Company, and now beg to offer a few
comments thereon.
On the basis of the renort, the pres
ent value of the plant Is approximate
ly as under:
Physical value Of water
plant .................... 1921, 10000
Physical value Of light plant liz, 900. %
$434.o0o.ov
TO which there falls to be
added:
Value Of real estate ....$ 100000
Extra wire and water
pipe 1900. 90
$505,000.OG
Value Of franchise, being 10
per cent of the water and
light plants .............. 5O,5OO.0O
$555,5vv.00.
II the city acquired the plants on
the foregoing Valuations the gross att
nual earnings of both plants would
require to amount to approximately
One Hundred and Twenty-one Thousand
Dollars ($12l,000.00), In order to be SUI
ficient to meet the annual charges,
which may be estimated as follows:
Operating expense-
Geperal working
expense .$2s,ooo.oo
Additional expense
for fuel on expiry
of contract with
Virginia & Rainy
Lake Lumber Co. 100000
Depreciation ....... 100000
--$ 100000
Interest ON bonds,
less Interest on
inves t men of
Sinking Fund .. ....... 100000
Sinking Funds for
redemption Of
bonds ......... ......... 100000
Gross earnings re-
quired to meet
animal charger. 1921, 5000
the assumption that the city. in order
to purchase the plants, would require
to issue bonds to the extent of Five
Hundred and Sixty Thousand Dollars
($56O,O00.0O). bearing interest, at. 6 per
cent and redeemable at par in, twenty
years, also, that the annual contribu-
ton of Twentyeight Thousand Dollars
$2S,OOO.00) to a Sinking Fund for the
redemption of the bonds at maturity,
could be invested at per cent. The
interest item shown in the above state