Morris tribune., 1919-03-28

it and discontinue the surcharge en-
tirely as soon as it ought to be done.
We have not only endeavored to
faithfully carry out our contract
with the City of Morris, but we have
done better than we agreed.
For 80 months from February
1914 to September 1916 with our
franchise rates in effect our average
earnings in Morris were 443c per
XVIII.
October first 1916 we made a vol
untary reduction in rates, and for
the next eleven months ending Au-
gust 1917 our average earnings in
Morris were 3.92c per XVIII. This
is an average reduction on all earn
ings in Morris Of IL IL per cent.
We then resumed our franchise
rates on account of the drouth and
shortage of water power compelling
us to run all of our steam plants,
and for the next twelve months end
ing, August 1918 our average earn
ings in Morris were 4.5c per XVIII.
By September 1913 our water
shortage was more serious than in
1917. We had been running at
loss for a year and were facing the
prospect of going into the hands of
receiver unless we were able to
advance rates.
Permission was secured in nearly
every community served by us to add
surcharge not to exceed rs per
cent to our bills with the under
standing that it would gradually be
reduced when conditions warranted.
With the rs per cent surcharge
| in effect for the five months from
| September 1918 to January 1919 in
elusive our average earnings in Nor
ris have been SAC per XVIII. The
| rs per cent surcharge was in effect
also during February, but the figures
for that month are not yet available.
| These figures show what an I'M
usually low rate schedule is in effect
and it must be logical conclusion
| to draw that it is for the interest
of Norris to adopt any reasonable
measure which will insure the con-
tinuance of the franchise rates.
The surcharge has made it posi-
BILE for us to continue in business and
furnish continuous service through
the past fall and winter, but it was
not sufficient to save us from oper
ating at loss.
If the service furnished by the
Otter Tail Power Company has prov
en- satisfactory it is just as import
ant to insure a continuance of good
service as it is to insure a continu-
ance of the franchise rates.
Good service can be insured only
by maintaining our properties in
first class condition, and by making
necessary improvements in anticipa
ton of increased demands for power.
These things take money and can
loss. Repairs cannot be made unless
we have the money to pay for them.
We cannot sell bonds or stock to
build new dams or steam plants to
provide for increased demands or for
all contingencies unless we can show
|
and profitable business and can give
reasonable assurance of being able
to meet our obligations.
Our business for the past two years
has been improbable, and from the
showing made we are not entitled to
issue bonds and cannot sell stock. We
must get along with what we have
until we can make better financial
showing. 1t is therefore to the in
terest of our customers to pay rates
sufficiently high to enable us to make
a reasonably satisfactory showing.
We are not asking our customers
to pay dividends on watered stock.
Our bonds and stock outstanding all
represent an equal amount of money
invested in our properties.
We are not asking our customers
to pay our officials high salaries.
Our general officers, president, secre-
tary and treasurer, do not and never