Willmar tribune. [volume] (Willmar, Minn.) 1895-1931, 1917-07-18

engineers ............. 2,82OOO
superinten-
dents time ............. $1,000
Depreciation this figure is
low ............ z'5oo.OO
Total cost of production$1 ,028.07
During the period under review your
plant generated 475,27O XVIII, which
would make the actual cost on your
switchboard $.03372 per XVIII.
We believe that there are various
other charges that should be added to
the actual cost of producing this cur +
rent and putting it onto the switch
board for money actually paid out and
chargeable to this account which i
might be found in your miscellaneous |
charges, such as drayage, telephones,
kilograms, postage and a part of the
bookkeeper's salary in taking care of
the various expenses connected with
this end of your business as now han
died. Hence, we know that the above
figure, $.Q3372 per XVIII, is less than
you can produce the same amount of
current for assuming you could buy
your fuel and oil at the same prices
you paid for them last year. Coal to-
day is abnormally high and we agree
with your Commission that the cost Of
coal today should not be determin-
ing factor. However, your Commission
will agree with us in this statement
that coal can probably never be pur-
chased again at SO low cost as it
was in the year 1916 on account of the
increased labor cost at the mines, the,
increased freight charges, both by
water and rail, and the natural in
crease for the product by the mine
owners. 1t is only fair then to as
sumo that beginning with the coal
purchased after the expiration of your
coal contract for the year 1916 you can
never hope to put current on your
switchboard at any where near the
above figures.
At recent convention one of the
ablest engineers in our State, who de-
votes the greater part of his time to
municipal plants, stated that he knew
of no municipal plant in the State OF
Minnesota that had been able to gen.
same on it's switchboard in the year
1916 less than four cents &c. per
XVIII, and great many of them ex-
ceeded that cost by large sum, i. e.,
the highest being as much as eleven
; Referring. to heating contracts,
would say that have understood they
were not profitable, but in making our
} proposition we have agreed to assume
and carry out all of the city's heating
contracts.
The Commission calls attention to
an interest charge of $1,000. This is a
question that is debatable but in my
judgment it should not be taken into
, consideration in arriving at the cost
of producing your current and putting
it on to the switchboard as compared
with buying your current from trans
r mission company delivered at your
, switchboard. If interest is taken into
consideration, it increases the cost of
t generating your current as figured by
Mr.. Larson and myself.
J Your Commission states that in
) their judgment the labor cost involv.
! ing $3.50 cannot be entirely cut out
r if current is purchased at wholesale,
! and claim that at least two engineers
Y and superintendent would have to
be retained at the plant. In this your
e Commission is in error, but, as an alb
E sOlute assurance of a continuity OF
D service and guaranty that your citi
3 zens shall have the service they are
r entitled to, we will keep the fires
+ banked at all times in your boilers
3 maintaining a certain amount OF
|. steam, until such time as our trans
f mission lines are completed and the
: City of Willmar is placed in one OF
J. our, loop systems whereby the current
), can be delivered from either direction
! and until your Council sees fit to re
E lease US from maintaining such fires
0 Under the boilers, after they are salts
fed that this expense is unwarranted
;, and a waste of that much money. we
!. will also care for our own lightning
arresters, thus doing away with every
e dollars worth of time from any of the
: city's employees. Under this proposi
e ton, the question Of all wages on the
: part of the city is certainly eliminated
8 and no room is left for argument.
( AS we have stated verbally, we are
8 in position to- give your three engi
D neers as good positions as they have
}, today, and at the same salaries, should
e they decide to work for us. -,
e Your Commission states that one
t place has reported to them that cur
: rent is being bought at one and one
: half cents Qkc) per XVIII. It is bare
ly possible that such a contract may
r be in existence, but am willing to &c
e on record and state that there is MOI
b a transmission company in the United
t. States selling current at any such fig
Y ure as it would be an impossibility fol
n them to exist at such rates. Gener
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