Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1914-07-07

| far to substantiate the claims of Roci
! Island arSenals champions that the
arsenal is the most economical place
| for government manufacture.
Mr.. Donohue in his speech in con
gress said: THE maximum power
that can be developed by the Rock Isl
| and dam is 1850 horse power" Col
olel Burr shows that it is 5000 horse
power and that the arsenal power pro
ject as now developed will give $4,000
horse power.
Colonel Burr's statement is as fol
lows.
Il am unable to give any figures as
to the exact cost of steam generated
power at this arsenal because we have
not recently had any experience with
steam plants. The arsenal has con-
tract with a commercial power dis
tributing company to furnish 1t cleo
trical power when required and this
electrical power is steam generated.
The amounts used are small and are
asked for at irregular times, SO that
the contract for furnishing the power
can not be considered desirable one.
The contract calls for S0.O1 per kilowatt
hour. Since it must be assumed that
the contractor is not in business for
pleasure and that he makes a profit
on the power thus sold, which he de-
livers to the arsenal over a long trans
mission line, it would probably be safe
to say that steam generated power
does not actually cost him over SO.OOS
per wilowatt hour. The arsenal water
power project is a much larger sub
ject, but / give you facts and figures
respecting il which are a matter of
record and can not be disputed. These
are made for the purpose of giving
correct and comprehensive statement
of the subject, which is of great local
interest.
The Mississippi river from the foot
of CampbeIIs island to the foot of the
arsenal island. distance of five miles,
has a fall of approximately Il feet over
a chain of rapids which, from the ear
Hest times, has made navigation diff
ficult. At the arsenal island the river
divides. one branch which forms the
navigation channel passing to the
north and the other branch which
forms the arsenal water power pool
passing to the south of the island. In
1867 the government, by an agreement
pursuant to authority of congress, took
over the water power rights in this
part of the river and since that time
the ordnance department, as repre-
scented by the Rock Island arsenal, has
endeavored TO develop and perfect the
water power project. Congress from
time to time has made appropriations
for this purpose. The total of these
appropriations for the development OF
the water power at the Rock Island
arsenal is sI,624,750. while the total of
the appropriations for extraordinary
repairs 10 this water power is $780,
$50. The contention that the power
used at the arsenal is expensive is bas-
ed on figures using the appropriations
as a permanent investment in this wa
ter power and computing interest on
this investment at 3 per cent as part
of the cost of the power.
That any computations based on
such assumptions are erroneous is
clearly shown by consider
alton of the facts. In sys-
tens OF accounting il is considered
necessary to charge OF from capital
accounts funds expended for purposes
found ineffective or for
appliances worn out or destroyed. The
correct present day capitalization of
a railroad does not include the cost OF