The Birmingham age-herald., 1916-05-28
KENDR|CK GIVES DETAILS ON PLAN
 FOR LIGHT PLANT Replies to Recent Objections Urged Against Proposed
 Bond Issue
EVEN THE EXPERTS
 BECOME CONFUSED
Shows How Difficult It Is for the Layman to Understand Argu- ments For and Against
 the Plan

An analysis of the situation as regards the s5OO,OOo electric bond issue which will be voted on June D. was given out yes terday by City Engineer Julian Kendrick who has made a special study ot electric plans. His statement, which was pre- pared for Commissioner James Weath- efly, follows:
 '-To Commissioner James Weatherly.
 Dear Sir: The manufacture, distribu- tion and sale of electrical current has al ways been surrounded by more or less mystery in the opinion of the average citizen; in fact, there are many things in this connection which are not under stood by many technical men,
 Tt was hoped that the publicity and educational campaign inaugurated by the Birmingham Railway, Light and Power company, in connection with the proposed bond issue tor a municipal light and power plant would result in placing before the public reliable data in such form that it could be easily understood by anyone. However, after weeks of cam- paignng and the expenditure of large / and the exchange of opinions pro and con both through the newspapers and from the speakers stand the general pub- lie is probably more mystified than ever with reference to the question being dis cussed.
 ''The Birmingham Railway, Light and Power company, at the very outset of it's campaign, stated that municpally owned n he a most every instance. It was hoped that they would publish early in the campaign a list of such municipal failures, in or der that investigations might be made of each case and the public given all the facts. However, so far the writer is informed, the name of not one of these plants has been given to the public. It was also hoped that the public would be given figures showing the amount invest ed in the electric plant in this city, cost of production and distribution of cur- rent and the net earnings on the invest ment The only thing along this line that I have observed in the company's va- rious publications was a statement to the effect that in 1915, the company earned only three per cent on it's preferred stock and nothing on it's common stock
 "Does the Birmingham Railway Light and Power company undertake to state that the electrical division of it's com pany did not earn more than this amount on the actual investment made in this department and were not portions of the earnings of the electrical department di- verted for the purpose of paying interest on the preferred stock on the railway and other departments?
 If the Birmingham Railway Light and Power company's electric plant, with no competition and with the prices charged for current is not making large profits, how can the company consist ently criticize the management of mu- nicipal-owned plants which are succeed ing in spite of keen competition?
 NEW ORLEANS SITUATION
 Some comparison has been made by the Birmingham Railway, Light and Power company as to the prices paid in Birmingham and New Orleans for electric current, prices being for various con- sumptions varying from to 20 k. W. h.'s per month. Up to this point the price runs very evenly.
 T understand that the average con- sumption for light in Birmingham is B k. W. h. per month. For this amount of current in New Orleans the price would be s2.55, in Birmingham $2.79, or S.4 per cent greater than New Orleans. For monthly bill amounting to S. 45 in New Orleans the corresponding price for Birmingham would be $3.92, or 13.6 per cent greater For a monthly bill amounting to sS45 in New Orleans, the corresponding price for Birmingham would be $11.59, or '371 per cent greater than in New Orleans. And yet the com pany in one of it's advertisements states that owing to various local conditions the cost of production and distribution of electrical current in New Orleans is 50 much greater than other cities that 1t is unfair to compare New Orleans rates with those existing elsewhere. The cost of fuel alone in New Orleans being at least 150 per cent more than the cost of fuel to the Birmingham Railway, Light and Power company.
 ''The Birmingham News has also been misled with reference to the conditions existing in New Orleans and elsewhere. On the 24th inst it states edtoria'ly as one of the reasons for the cheap rates for electrical current in Cleveland, O., that the municipal plant only supplies an area located in the center of the city one and one-half miles in diameter Cor approximately one and three-quarters square miles) and yet in The Age-Her- a'd of the 18th inst. the Birmingham Railway, Light and Power company states in an advertisement that the area supplied by the municipal-owned plant in Cleveland is 60 square miles. The
 
 highest net rate in New Orleans is cents per k. W. h., which is correct, but . failed to ascertain that prior to the determination by the city to build a municipal plant the maximum net rate was F cents per k. W. h. The News states that 8 cents per k. W. h. is the maximum as well as the minimum charge for electrical current in Cleve- land, whilst Bulletin No 2 issued in September, 1915, by the Cleveland mu- ncipal light plant. states that the aver age price for current sold was l.So cents per k. W. h. The News does not seem to be very definite in it's conc' usions as to the distributing cost of electricity, nor has the Birmingham Railway, Light and Power company seen fit to enlighten the public on this question in any of it's more recent publications. It can gener- ally be stated, however, that the cost of distribution. including maintenance, is usually slightly less than the cost Of