Newport daily independent., 1918-09-24

count of county scrip as these items are taken care of in another credit in amount $457.25. That the people should not be called upon to pay $2,- 900 for the death of MT. Dodson, nor should the general office expense be charged here for the people to pay as there are charges made in addition to this of $2,550T8 to cover superin- tendence and office expenses here and also $42O for office rent here. That the depreciation charge is not in order for the reason that the com pany asks credit elsewhere for $1,- 99277 for maintenance of their plants, and this charge for main tenance apparently does not cover labor for maintenance but only for material. If the plant is main tained and this charge is made and paid, then the people should not be asked to pay a twentieth part of the plant each year for depreciation. In twenty years at this rate, and long before the expiration of the present contract with the company, the people would have bought and
 aid for the plants twice, and the company would still own them. It is a matter of general knowl- edge that the present pipes of the water company have been in use for over thirty years, and according to this depreciation charge they ceased to exist years ago.
 After taking out the above items |-asked as credits, amounting to $l4,- 618.93, the statement furnished shows that the company made profit last veal in Newport of $11, ,325.78.
 It has been suggested that a de- preciation charge of not to exceed two per cent at the outside would be sufficient, if any such charge IS Tn order, and this should be on the ac- tual valuation. It appears that the company pays taxes on valuation of $44,34O. According to this, then their property is worth some thing in the neighborhood of $9O,OOO, and a two per cent depreciation would be $1,8OO, and would still leave them a net profit for the year of $9,525.78.
 There was also read letter from stock broker in St. Louis, dated September 20, 1918, offering stock l in the Arkansas Light & Power Com- pany for sale, and stating that he IS
 advised that the stock is earning better that nine per cent at the pres
 ent time.
 Tt also appeared from the state ment, oral, made by MT. Couch that
 the company had made contract 10
 deliver electric current to the town
 of Tuckerman for an average price or
 seven cents per kilowat. He also
 stated that in carrying this to Tuck Herman there would be loss of about
 40 per cent. and it would thus cost
 Tukerman about Il cents per kilo- wat. The statement furnished by the
 company shows that their cost of dis- l tribution of current here in Newport is orc per cent; this added to II
 cents would make an outside cost ol
 current in Tuckerman of l2 cents
 while the charge made to consumers here is 121a cents.
 It was shown by figures furnished in the audit filed by the company
 that the increase askeds of 35 per
 cent on water rates Exclusive of city hydrant rentals), and approximately 25 per cent increase in light rates
 (although the small consumer wouie
 have to pay a 28 per cent increase)
 would amount to approximately Slo'
 900 per year. If they had been re
 ca;ving these rates last year, tner
 their profits, after allowing pel cent depreciation charge, would nave been approximately $22,50O.
 It was also called to the attentioi of the council that this company nae
 within the last two years sold cleo tric current in Newport as low q as sh cents per killowat as maxi mum charge, and that after they hat purchased their competitors plant the rate was increased to 10 cent and then to 1912 cents, and now IL soupht to charge 16 cents, a consld erably higher rate than the people ! Tuckerman will have to pay for eur rent from this plant.