The labor world. [volume] (Duluth, Minn.) 1896-current, 1914-11-21

value. NotWithsta ding this excessNelI
net incomes, plus " the other charges,I
mentioned, their average receipts perl
kilowatt hour was but .044: RI ,Ehat 49,
their total receipts ;$51O,795 divided2I
by 11,SSS,4O7 kilowatt handled. :equalslI
an average: OF .044 cents per kilowatt
hour. The company'sf charge, for
small consumers. is 8 cents per kill
oWatt hour for, light, and 8 cents for
power. This represents the main part
of the business Yet tibet total average
per kilowatt used, including the ex-
cessive profits last year, was only .044
which Indicates the; truthftfiness of
statements frequently made, that the
rank and file were paying the excess
sive rate, while the favored few had
privileged rates or free lights, bring
ing down the average to .044 per kill
owatt hour.
The Four Cent Rate.
Under the new proposed rate if
the company will treat ALL consumers
alike on the schedule provided in the
ordinance, making everybody pay the
schedule, it should average without
This multiplied by 11,s33,4O7 kilowatt-
would give: them gross earnings of
$414,169, and: after deducting operat-
Ing expenses, taxes and insurance, as
per their statement $2S1,S08, would
net them $1s2,361 or s per cent on
50, ,220, nearly three times the
physical value of their plant, earning
enough to pay interest ION $1,353,O0O
bonds and :$1,15o,o00 preferred stock
This without taking into consideration
the increased volume of business that
would be done by cutting the present
rate for private consumers from
cents to 4 cents. Every one knows
that experience has always shown that
such a reduction would largely in
crease the consumption. It would not
be surprising if everybody had to pay
equally under the new rates, the
company's net surplus would be near
~ as large as under the old schedule.
This is shown by the company's
statement of earnings for 1907, after
the city council forced the company
to reduce their rates from IL cents
per kilowatt hours to 8 cents per kill
owatt hours against the oompany's
protests that it would bankrupt them)
ing expenses $163,8O4 or 5per cent on
reduction, and has rapidly increased
since then. :.
THE city had made a careful esti-
mate of expenses of operation. Of a
plant under the plans prepared for
the city, and are satisfied that the
city could pay all operating expenses,
taxes, interest, allow. for depreciation,
and provide a sinking fund on an .022
rate per kilowatt hour, and if it made
& rate to make q net profit of $170,-
S37 per annum over and above total
operating expenses, the city could,
on a OBJ rate per kilowatt hour, pay
all operating expenses and cut off its
net surplus, pay for the plant in five
years time, after which, without any
interest charge to provide for, it could
pay all operating expenses and allow
for depreciation under a. 2: cent per
kilowatt hour. -.
ITO further satisfy themselves that
the analysis. Of, the Duluth Edison
sworn statement and the city's figures
are accurate, itohas been proved to the
satisfaction of the commission, that a
municipal plant elsewhere, now in op-
Grafton, having Sc per; cent capacity Of
the Duluth Edison plant, in 1918 paid
all expenses, operation, interest and
maintenance and generated power by
steam at cost of .024 per kilowatt
hour. 4
Says: Rates Are LITERAL:
I'm the light of. these figures and
this thorough investigation, the COM
mission is satisfied, and it should be
plain to the people, that the rates pro-
posed under tho new ordinance, are
liberal and more than reasonable to-.
the company, and that the proposed