The Grenada sentinel. [volume] (Grenada, Miss.) 1868-1955, 1916-10-06
DR.. DORROH WRITES
OF POWER PLANT
Continued from First Page)

Municipal Engineering.
I do not feel qualified to discuss
specifically the Grenada plant for the
reason that | have made no investi-
| CATION to determine its performance.
There is a striking similarity, how
ever, between all municipal plants,
and if you would have Il discussion
of the principles involved, making
such applications as may be proper,
| shall be glad to give you my views.
There are approximately 5000
central plants in the United States
today. Some 1900 of these are mu-
nicipalIy owned. 1t is a well known
fact that the plants owned by pri-
vate companies are regarded as good
investments. This is shown by their
willingness to pay good. prices for
the franchises and the difficulty ex-
perienced by municipalities when
they attempt to acquire possession of
the privately owned plants. 1t is al
so true that almost any city or town
could lease the plants to private par
ties at a price which would insure
interest on investment and a fair re-
turn. The actual plant cost of pro-
duction of electricity should not en-
coed five cents for kilowatt hour.
The usual retail price is ten to twelve
cents. The cost of pumping water
should not be over ten cents a thou
sand gallons and the sale price will
be two or three times this figure.
Such cost and sale data would indi-
cate a fair profit, after taking off
overhead and collection expense.
Much of the water and the electric
energy are wasted through leakage.
There is often a surplus of both and
no effort made to find a market, and
the result is that many municipality
owned plants do not pay more than
a small interest on investment, if
that.
1t would therefore appear that
there is some serious difficulty or de-
feet in the efficiency of the munich
owned plants. Under alder ,
manic government the control of the
plant is usually vested in a special
of the council. TIL e
members of the council, hence of the
are elected because of 20
[itical standing, popularity, or at best.
because of proven integrity and gen.
sral ability and not because of any
training or experience which
its them for management of water
and light plants. They have no fl
1ancial interest in the plant and,
ONE men, this means no in
crest at all. They are in charge for
4 few years and give way to others
Who are no more competent.
If a remedy for these conditions
s sought, let US investigate the man.
,gement of any successful establish
nent having to do with the manufac-
.ure and sale Of any commodity. 1t
will be found that a single, trained,
,igh-salaried expert is in complete
He is usually a stock hold
,r. He is familiar with details of
he business and exerts every effort
o get and hold business and turn out
goods with the least possible ex-
'ense, consistent with quality. The
ask him only three questions:
Are you retaining public conf
lence?" Are you maintaining the
plant as it should be-" "Are you
declaring satisfactory dividends?"
Such management and only such can
succeed.
would suggest that a careful audi.
made Of the bouns of any munich
pal plant that SEEM; not to be max.
.ng a satisfactory showing. If the
plant is not doing well in a business
'voy, seek a contract with d respon-
-ible manager who will take charge
Of the plant for a period of say ten
years, giving bond to maintain the
+ liant in good condition, render salts
factory service and Da;w the city an
percentage of the net reve-
nues. His own compensation will
depend on the amount of business
done and the plant e~ficiency. The
will not only be protected
against loss but insured revenue.
Another plan which has met with
degree of success is to appoint
three commissioners, to serve with
small compensation as long as they
give satisfaction, to whom is entrust-
ed authority over the affairs of the
plant. This plan does not differ ma
terially from that employed in the
of the schools through
a board of trustees. 1t vests author
ity in a small group whose sole re-