Ashland tidings. [volume] (Ashland, Or.) 1876-1919, 1912-12-02

Construction cost less
than present indebt-
edness .......$ 11,9OO.51
Interest.
Annual interest on bondsN$4,512.5O
Annual interest on bor-
rowed moneys .... 632.75
Iotal ............. so l45.25
This makes a monthly interest
charge against the receipts of the
Electric Light System of $42S.77.
Depreciation.
The life of an Electric Light Sys-
TEN is usually considered about fif-
teen years, and therefore one-fif-
teenth should be annually deducted
from the original cost in order to de-
termine the depreciation, but as a
matter of fairness, and as some may
differ with engineers on this point,
will take it for granted that the Ash
land Electric Light System will have
life of twenty years, which will
therefore mean that ope-twentieth
should be deducted annually from
the original cost ($96, ,154.44 as de-
probation, which amounts to $4,807.-
II, or monthly charge of $40O.6O.
Bonds.
A plant must not only have an
earning capacity to pay its running
expenses and interest, but must also
earn enough money monthly to pay
the bonds and other indebtednesses
as they mature.
On the $4,000 bond issue Of Sep
tember 2S, 1908, we find that $4,000
falls due on the first day of each
September. This means that S2OS.33
must be laid aside each month out of
the earnings of the plant to pay these
bonds. 1t will take seventeen years
more, from the present time, before
these bonds will be paid ($7,5OO of
this issue has been paid by money di-
verted from General Tax and Street
Tax Funds).
On the issue of $4,000 bonds of
January /, 1909, find that they ma
ture in 1929. In other words, in II
years from the present time the Elec-
trio Light System must have made
enough money to pay not only the
$4,000 issue but also this 100000
issue which falls due at that time.
An annual earning of $1,764.70 must
be made to meet this obligation, or,
figured on a monthly basis, of
$14705).
The issue of $4,000 bonds of July
1, 1910, find that they mature July
1, 1880. Eighteen years from the
present time these bonds must be
paid. An annual earning of ST.
3SS.SS must be made to meet this
obligation, or, figured on a monthly
basis, it is $115.74.
Monthly earning necessary to meet
bonds and interest:
On $4,000 bond issue. $208.33
5000 bond issue. ..... 147.05
$25, 900 bond issue. ...... 115.74
Interest on bonds and bor-
rowed money ........ 42S.77
Total monthly earning nee
essary for bonds and in
terest $S99.S9
1913 Fixed Charges.
Upon information from the Super
intendent of the Electric Light Sys-
TEN, there are only limited number
of supplies on hand and therefore
construction or the extension of the
system cannot be made without an
additional bond issue. If this is
fact, then moneys to be spent the fol-
lowing year could not possibly be
| charged to CONSTRUCTION" and
would necessarily come under "Oper-
alton" and Maintenance.
The fixed charges against the Elec-
trio Light System for operation and
maintenance for 1913 are here enum-
Grated on a monthly basis:
Superintendent's salary. S 10000
Clerical hire .......~. $500
Lineman 1900
Three operators at power
house .............. $4,000
Men to turn on street lights 500
State inspection fee. 49,. Al
Motorcycle depreciation and
expense .............. lU.OO
Interest on bond and bor-
rowed money ......... S99.S9
Plant depreciation .. 10000
Total fixed charges. ..$1,755. 80
All other charges against the sys-
TEN for operation and maintenance
will vary, but have estimated them
on monthly basis taken from the
records of maintenance for the last
ten months of the systems operation
and are as follows:
Extra labor ...........$ 27.66
Supplies ............... 74.15
Freight 90