The Birmingham age-herald., 1916-05-28
EVEN ExPERTs CONFUSED

T have referred particularly to the diff ferent results obtained by the Birming- ham Railway, Light and Power company and the Alabama Power company in fig uring the formers power rates, in order to show that experts as we'll as lay men are confused by the schedule of prices of power furnished by the local company. 'I have referred at length to the con- fusion arising from the information fur nished the public from various sources, in order to illustrate the difficulty which one has in forming an intelligent idea of the desirability of a municipally owned electric light plant.
 q am well acquainted with all the | authors whom I have quoted and know absolutely that none of them would will lingly undertake to deceive the public and that each is trying to present his views honestly to the people yet all must ad- init that confusions exist to large ex- tent.
 "I was much interested in the estimated
 cost of a municipal light and power plant as supplied by the Birmingham Railway, Light and Power company through the press and l was very much disappointed that they did not go more into details as to size of plant, etc. One item was of particular interest to me the 1 Birmingham Railway, Light and Power
 
 underground work, including the removal
 of poles, reconnecting buildings etc, was approximately s250,000 whilst the city's un- derground work, with great deal of this expense eliminated was estimated to cost $400. coo.
 Referring to the ability of the city to operate an electric plant would re- fer you to the municipality owned plant at Jacksonville, Fla, which has been in oper- i
 value of the plant is slightly over B 900, ,OOO
 It's net earninge for the year 1914 were $3S6. 621 .l9, after paying all opera ting
 maintenance and repair charges Ger tainly this amount would be ample to take care or interest, sinking fund and depre- citation. Depreciation reserve of this plant at that time amounted to $605. .325 54 whilst the bonded indebtedness had been reduced to less than $272.000.
 'I desire to call your attention to the following statement from the municipal lsht plant of the city of Cleveland. O. which has been in operation some two years This statement is for the first eisht months of the year. 1915, and shows l that the plant has taken care of it's total operation and maintenance expenses | flxed charges, sinking fund and interest With profit during the eight months of so'a9oz which is remarkable showing considering the price for which the cleo tric current is sold and the short time the plant has had in which to work up a
 business in competition with an old es- I tablished plant:
 i Total revenue for sale of current 1 1-1-15 to S-31-15 ...............S3 .S31S 500. .3S i Total operation and maintenance l for period 1-1-15 to S-3l-15 .. lSl. .755. 2s 1 Net earnings S.....,.....,....,....$ $l32 06o. 10 /! Fixed charges, sinking fund and |, interest 1-1-15 to S-31- ... $l25 275. .2S
 Profit for first eight months of 1 year 1915 61S9 S2 l "The Birmingham Railway Light and | Power company is urging that s5O0,OOO is
 not large enough to enable the city to
 successfully compete with it over the en- 1 tire city. This is begging the question. l The amount is amply large enough for a sound. business-like beginning. As the | city wins customers and adds to it's busi ness it can construct additional units which will enable it to push its lines
 further and eventually. the whole terri-
 tory can in this way be covered