The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1919-05-10

sents, normally, money expended for
something, for labor, for fuel, repairs
or something necessary for the oper-
alton OF the plant: money paid out
for something purchased. What
would we do with this $500 a year,
to whom would we pay it? The fact
is, we would pay it to ourselves.
This depreciation expense" is sim
ply so much money that would be
put into the bank each month to ac-
cumulate for the purpose of buying
new machinery, paying off bonds, or
for any other purpose the city might
choose, as has been done in the past,
Buying Machinery for the N. $. =. Co,
III we bought current from the n,
s. p. Co. this depreciation expense
would still be paid, but instead OF
being put into the Lake County Banl
to the credit of the city, it would be
paid to the N. S. p, Co. to buy new
machinery for their plants.
What 1t Amounts To
This depreciation fund of $1,000
placed in the bank and left there fol
the purpose stated, would in ter
years make $4,000 in Is years
the term of the N. s. p. Co. contract
l-~$114,0O0 or in 20 years $4,000
Money that the city would have
with which to buy new machinery
pay off bonds, etc. These sums
would be augmented very materially
by the fact that the city receives 4
per cent interest, compounded
monthly.
If our current were purchased
from the N. s. p. Co., Prof. Ryar
finds that 1t will cost 3.02c per Kilo'
watt hour and this is a low enough
figure, as the overhead expenses have
not been made very liberal.
Therefore, on the basis of $4,000
Kilowatt hours per year we would
pay to the N. S. P. Co. $19,630 pei
year, or at an average of this amount
per year for the term of their con
trhact-15 years-we would pa!
ehcht pGof,foV. anu WHdl WOuit
we have at the end of their perio,
to show for this enormous expend
iture? Nothing but a stack of re
ceipted bills. If we put this sam
money into our own plant we will
have a plant left at the end of /!
years that will be worth a consider
able sum of money, and which W,
can either continue to operate or dis
pose of as the people then see fit.
Save $4,000?
Many Figures" have been pre-
sented to the people recently show
ing how the city will save $1,000,
per year" There is absolutely moth
ing contained in any legitimate rec
ords, estimates or figures in exist
ence by which such a saving can b,
shown without resorting to purel.
theoretical reasoning and assump
ton. and a ridiculous distortion O
the facts.
Taxes Not Affected
Another point advanced in supper
of the N. 8. p. Co. proposition Is tina
this proposed bond issue would rails
our taxes very materially, while thes
same claimants know full well tina
this bond issue would not raise tn
city taxes one cent. Not one cen
of this bond issue is to be paid b,
general taxation.
Ira olo FHsrtnn For tho NJ = ID Tr
they heap on the local plant interest
depreciation, sinking fund and ever
imaginable sort of expense in orde
to raise the cost per Kilowatt hour
and in the next breath tell us tina
1t will be paid in general taxes.
The height of absurdity.
Limit of Bonded Indebtedness
Still another point recently give
some prominence in a local paper
the fact that the issuance of the pre-
posed 500, 900 of bonds would brin
Y us dangerously close to the limit {
I our power and authority to issu
: bonds.
More absurdity.
Be not deceived by any such ride
ulous statements. The limit of OF
Y bonded Indebtedness for waterworl
s purposes alone is 10 per cen of tn
I assessed valuations present linn
I of something over $500 900. Tt
Q limit for Sanitary Sewer purposes
s per cent (I am not sure that tn
has not been raised to 10 per cent
0 a limit Of more than $500, 900 fl
a this purpose. The limit for gener;
r purposes is 5 percent, or more tina
5000, 900. We have outstandir
e now $4,000 electric light bonds an
$4,000 sanitary W bonds. a t
9 tai bonded Indebtedness of $500
Are we dangerously close to Il
9 limit?"
1t has also been enormously state
Q that the price of $4,000 for II
complete new unit for the plant W;
for the equipment +. o. b. cars al II
factory and that the freight and il
4 1890 -