The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1914-04-17

ness as this gas plant; but we can
see no good reasons for an increase
In operating expenses In the sum OF
s4.s4s. SO I'm the year 1911, over 1910.
and an increase of $3,701.s2 in the
year 1912, over 1911. and yet an
other increase In the sum of ST.
gal IT in 1913, over the preceding
year. there being no corresponding in
creases In the manufacture and sale
OF gas In these last three years.
In fact, there was less gas manufac-
tured and sold in each Of these last
three than was manufactured and
sold In 1910.
Reduce Operating Expenses.
we think that the operating ex.
penses as claimed and returned by
the company for the last two years
should be reduced in the sum OF
$4,000. They seem excessive. That
will still leave a gross increase In
operating expenses for the last three
years of s13.1S7.49 as compared
with its total operating expenses for
the year 1910.
1--WE consider an annual rate OF
per centum. including depreciation,
fair and reasonable return on such
an investment as this gas plant. We
accordingly adopt s per cent as the
proper rate.
AS 10 depreciation as computed
by the Consumers Power company,
see II exhibit IL
I'VE, therefore. fix the present
value OF the gas plant of the Con
sumers' Power company in the city
of Mankato as a going concern at
$4,000. We find that its gross
earnings for the four years under
investigation were s17S,574. "a and
its fair and reasonable operating
charges for the same period of time
! to have been s96.60S. SO. Its total
net earnings for the four years were
therefore, s76,965. 81.
1--WE assume that the company will
continue to manufacture and sell as
much gas under lower rate II not
more, In the future as IL sold and
manufactured in 1913. Wherefore
we conclude that It can afford to
manufacture and sell gas in the
city OF Mankato at a maximum rate
not exceeding $1.10 per one thou
sand cubic feet.
North Mankato Extension. VI
mo consideration has herein been
given to the North Mankato extern
sion OF the gas plant of the Con
sumers' Power company I'm this city
for the reason that no appraisal was
made of such extension. The com
pany no doubt derives some add
tional revenue from its North Man
kato business. 7.
"The company now charges q
minimum rate, we are advised, Of
fifty cents per month where IL in
stalls a meter whether or not any
gas is used. This Is a matter that
should be considered by the city II
II should enact an ordinance govern
ing gas rates in the future. ...
Tests Of the Gas. &
From the report of v. II. Roeh
rich, city chemist and gas inspector
for st. Paul in evidence herein as
exhibit o." II would appear from
tests made by him that both the
candle power and heat units Of the
gas furnished In this city are low
and not up to the standard, which
is likewise matter that should be
considered by you gentlemen Of the
council
Some method should also be
adopted by the city to check up and
keep a permanent record of the gas
consumed in this city from month
TO month and the entire year.
Gentlemen, we have carried
through this investigation at a con
siderable sacrifice of time, at vast
amount Of annoyance. all without
any pay. and we look for no thanks
We have performed the task i'm
posed upon us according to our best
judgments and abilities as civic
duty that any good citizen is liable
to be called on TO perform and which
he should not shrink from perform
ing however arduous and unpleasant
il may be. Controversies will arise
In the conduct OF human affairs and
these must be settled by the fallibl,
judgments OF men. There is NJ
other way to settle them. We hav,
tried to be just to the city and JUS
to the Consumers Power compan,
in all that we. have done in thi;
matter. Each have duties to per
form and rights to be protected. Il
we are wrong In our conclusions
that wrong can be remedied. IL We
Gross Operating