The Mount Holly news. [volume] (Mount Holly, Burlington Co., N.J.) 1891-1942, 1918-12-03
Conference on Water Rates


Water Company were present at a
meeting of the Business Mems Asso-
citation, on Tuesday night, to explain
the reasons for asking the Public Util-
tiles Commission for the privilege OF
increasing water rentals.
Edward d. Stokes, a director of the
company, stated that the present reve-
nues are insufficient to cover improve
ments and extensions required from
time to time; there is not enough
money to create sinking fund to pro-
vide for the payment of bonds; that
the operating expenses eat up all the
revenue; and that the stockholders are
deprived of return on their invest
ment which, during the past twenty
years, has averaged less Ethan one per
cent! The expenses of the company,
he said, are kept as low as possible, no
exorbi tant salaries being paid, and
the directors receive no pay for attend
ing to the company's business. 1t is
necessary, he said, to get more revenue
to keep the concern solvent.
V. Claude Palmer, solicitor for the
company, said the proposed new sched-
ule of rates had been prepared by an
expert, and is in accordance with the
rules of the Public Utility Commits
sion. The capital stock of the COM
pany is $4,000, and there is a bonded
debt of similar amount. OF the
bonds, $4l, 900 are held by investors;
the balance of $4,000 is in use as col
lateral security lor loans made by the
company. During the past Is years
the total dividends paid amounted to
$500. At rate of six per cent the
dividends would have amounted to
$4,000. The present estimated value
of the plant, as determined by an ex-
pert, is $4,000
Taxes and other expenses, Mr.. Pal
mer stated, had increased considerably
during the past few years. In 1911
the taxes amounted to 1890; last year,
$2,242. In 1913 the operating expenses
were So, $50; in 1917, 81, 6S4 The gross
receipts in 1917 were $16,502 Sc. The
new schedule will increase the receipts
to $27, $40.
The new rates increase the present
fiat rentals about so per cent, and
raise the cost to the to Enship for fire
hydrants and flushing sewers from
about $1,000 to about $4,000. The
rates are based on a fixed schedule of
the Public Utility Commission, and
provide 10 dividend on the value of
the plant and creation of sinking
fund required by law.
Last year the monthly consumption
of water in the town averaged IA 900, 900
gallons, while thus far this year the
average has been 19,125, 900 gallons.
The Water Company is now confronted
with new expense, as hereafter it will
be required to take care of all pipes in
the streets, it being responsible under
the law for its mains and everything
to the curb lines.
A general discussion of the entire
subject ensued, including the question
of installing artesian wells as a source
of supply. and the purchase of the
water plant by the township.
Finally it was decided to refer the
entire subject to a committee of three
business men, who latter a conference
with the company and others, should
report at later meeting DIR. Elmer
D. Prickitt, Walter /. Dill, and DR.
Harold E Longsdorf were named as
| the committee.
The committee made a report to the
| Business Mems Association at meet
| ing held last night. The committee
stated that it held conference with
the water company on Friday night.
| The company is not willing to
promise that artesian water will be
supplied if the increase in rentals is
| granted, claiming that the additional
revenue is.only sufficient to meet in
creased expenses, provide a sinking
| fund, pay dividends, etc. At the pre-
sent time no improvements can be
made.
On the question of municipal owner.
ship the company stated to the com
mittee that the directors are willing
to talk business at any time anc
thought price satisfactory to the citi
zens could be made.
The committee reported that the
proposed increase is excessive; that il
will furnish the company with from
$4,000 to S11 ,00G additional revenue fol
which the public will receive no bene
fit; that artesian water is desirabl,
because of its purity and that tn
present supply is constantly becoming
, more polluted, making it more Difficult
TO be filtered.
A resolution was passed which pro
vided that the Business Mems Assc
citation joins with the township com
) mittee in protesting against the pre-
posed increase of water rentals as bein
out of proportion to the increased eN
pense of operation of the plant withou
5 furnishing better water.
George NJ Hillman will represent th
township committee and business me
; at the hearing before the Public Util
ties Commission today at Trenton
Walter l. Dill was selected as repr,
sentative of the business men, to a
company Mr.. Hillman to Trenton
: Chairman Cowperthwait is appearin
3. for the township committee.
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