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

ChoE4e4pl9gsI 0xAsAAuS sOus OOnu0s s1SAes
the interest received from the invest.
ment Of the Sinking Fund.
It is very difficult TO determine the
proper amount for the charge of de-
preciation, but the committee has re-
lied on the experts and have allowed
so for buildings and. machinery and
ali the plant except the water piping
and connections which has been fig.
ured at 1870. :zs* ss s; $ z> ;.
It is perfectly clear that the; decid-
ing factor in any proposed purchase
of the water and light plants by the.
city. is the sufficiency Of the gross
annual earnings from both plants to
meet the annual charges and at the
same time leave sufficient margin.
to permit Of the present scale OF rates
for both water and light being reduced
and also at the same time make it a
self-sustaining proposition = ~. g.
It was pointed out by the experts
that the plant was up to date. econ.
omically run and the water supply at
the present was equal to the, daily
consumption, being about 100000 gal
Ions per day. The plant, both water
and light, is loaded at the present time
at about two7thirds capacity.
The heating plant. in the opinion of
the experts, is valuable asset Of the
plant and might be extended to other
public buildings.
The experts figure by the amount of
current and water delivered from these
Giants at the present rates the gross
income would not be within 1870 suf-
ficfent to Offset the annual charges
as specified above.
The fact that the plants are only
loaded to twothirds of their capacity
and there is a chance to extend the
heating system leaves the only means
of making up the difference between
the annual gross expense and the es-
timated annual gross receipts. This
question we leave for discussion and
the decision of the council as whole.
The question Of duplicating a plant
or plants has been taken up by the
committee as report as follows:
The franchise, OF Ordinance No. ~,
constitutes a contract between the CITY
Of Virginia and the Light and water
company with provision as, SHOWN
by Section S, of said ordinance as 1oA-
lows: 1.-The village Of Virginia agrees
and binds itself and its successors to
rent from said company all the gas ana
electric lights, not to be less IMAM
twenty arc lights at any time, and all
the fire hydrants of the class and CHAR
acter herein designated that 1t may
deem necessary for the use OF SAIL
1itv for and during the term of twenty
five years."
On legal advice of the city attorney
this contract would necessitate the
payment to the Light and Water COM
pany arc light and hydrant rental out
of the profits Of the new proposed
plant and this drain on the net re-
ceipts Of the new plant would add ap-
oroximately $19,5O0.00 to the current
expenses of the plant.
On the other hand the city attorney
advises that there has been decisions
py the high courts that II 1t can pe
SHOWN that the rates are excessive ana
che dividends or earnings of the AlgA>
and Water company are exorb1tanl
,.. court can set aside the contract
mt until such time as this step has
been accomplished and taking into con-
sideration that a proposition of this
kind involves a lengthy legal battle
the question of new or oupA1ca'e
PAoPOSHsA~~~'
Your committee reports, acting upon
the instructions from the council tha'
it has spent a great deal OF time III
arranging with the experts ana map
ping out to them the proposition as II
appeared by the petition presented by
the residents and property owners
Meetings have been. held on an average
Of three each week, the first meeting
oeing held on February goth. 1911.
Sizing up the situation as it appears
to us and upon careful perusal OF the
reports of the experts and the cohol-
lions surrounding the matter ana re-
porting back to Your Honorable BODY
the findings of the experts ana the
findings Of the committee, with all Que
consideration on the part which the
council is required to do towards the
citizens and dealing with the reading
of the franchise in all it's requirements
On the part Of the company to the
consumers of both light and water,
and basing it's opinion after consulta-
lion together and weighing the matter
as a personal one, we suggest that IL
Your Honorable Body, after receiving
reading and weighing the propositions
,nculcated in the experts opinion, that
il a purchase is to be made on the
part of the city of Virginia of the
electric light and water plant as IL
now exists, or construction OIL NV"
nicipal plant, or the purchase at the
expiration of the 1913 period OF eAthet
the electric light or the water plaht
as it exists at the present tlme' taat
the electric part of the present plant
be purchased and this at the figures
to be arrived at according to- the worn
ing of the franchise and on the propo'
sition that has been recommended w
our attorney. AS to the water oepaiI
ment itself the figures of the experts
nave reached considerably higher tnan
was anticipated.
The. source of water supply CANNOT
he enlarged upon by additional Wells
as these additional. wells will only teno
TO drain the present ones and make the
supplv the same as at present. LIE
onlv proposition that we can look u
with complete success. in case the city
decided to purchase this department. Is
for the city to build either system OF
liberation tanks up the ravine north
east of the city or to- connect to the
city of Eveleth water system ana oullo
! a large reservoir on the Eveleth hill,
the idea of this being that it would
give us a pressure or something over
forty pounds TO the square inch In this
city, Another proposition which may
be entered into is the construction Oh
! q greater and better water supply as
suming that the city owned. the plant,
would; be for the city to- construct