Arizona republican., 1919-10-26
Where The People
 May Have a Hearing
opoosino the Steam Power Plant

Water Users Association:
 The undersigned members Of the Water Users association wish to lay before you the following reasons why i YOU should vote against one Of the proposed measures which will be pre- sented at the election, october Zo'
 It is proposed that an electric steam plant be built to cost $600,OOO. We have five water-power plants now | which have a total capacity of 19,60o | k. W. The power plants located in the valley on the canals have a capacity | of 7,600 k w. They are generating electricity from water-power that would otherwise go to waste. Other water power plants can be construct ed on the Salt river and operated at low cost. The revenues from water power plants are almost clear profit Steam power will cost us many thou sands of dollars a year for fuel. More over, the cost of fuel and freight IS constantly going up. Steam plants are folly when cheap water-power IS available Let us build more water power plants-not steam plants.
 No one will loan money to the full value of the property mortgaged. | Therefore it will be necessary to put a mortgage on the whole project, as well as on the steam plant, to raise | this money. Even now the large in surance companies are trying to de- wise way to loan money on Salt River valley ranches in the face of the existing lien held by the reclamation service. If we put a second mortgage | on the project now, we will find It ! even more difficult to secure loans at low interest rates. Let us not put second mortgage on the project for steam plant of doubtful value.
 It has been stated that steam plant is needed to supply power to the farms during the winter. From three to six thousand horse power was gen. erated by our water-power plants on the canals all last winter without wasting any stored water. Why should this water-Power be sold to others at a low cost and the farmer be required to build steam plant and generate power at a high cost to serve himself. Let others provide their own expensive steam power. We should be able to use our own water power.
 , If we are to get electricity on our ranches at last, why don't we vote some money to build power lines to supply ourselves? The plan is to let the farmer build his own line and for the association to gradually pay him for the line. These lines cost about a thousand dollars a mile. How many miles do you want to build? Those who live near the existing lines will build short lines and secure power Those of us who do not live near the existing lines will go without power, as before. but we will be compelled to | Q an4 fnF hn limo
 This is unjust. Let us not vote for any plan which is not fair to all.
 The association has power contracts now in force with the Pacific Electric company in Phoenix and with the Consolidated Canals company in Chandler, which have six and seven years yet to run. If steam plant is built now we will be furnishing steam generated power to these companies for seven years without any addi- tional income. Maybe we can sell pow CT at higher price drter the existing contracts expire, and probably we car e sell to others at a higher price before P then, but why should we build steam f plant for the benefit of these compa. e nies during the next seven years? MT f Elliott will tell you we must have tht n steam plant to make the minimum O c 1000 k. W. when water is short, bu E. he does not tell you that if we gen. n crate 1000 k. W. that we are contrac e bound to furnish the P E. Co, of Phoe y nix and Consolidated Canal compan!
 3,100 k. w. of this power at the rat e now prevailing with these companies n We are told that the electric plant
 of the project cost s4.00O,000 and yielt $ a gross revenue of S410000 per year n with S1O0,000 operating expense an, 1T $31O000 profit. If interest at pc l. cent and depreciation at per cent ar 1t considerated it will be readily see ,f that this 10 per cent on s4,00O, GOO in
 vestment is s400 900, and then the sup
 posed profits of s31000O quickly van
 ish, and a deficit of s90,000 a year i
 found. On the existing plants we
 not have to pay any interest becaus s some of the plants were built by tn
 government and some by direct as
 sessment of the water users; but O
 the proposed plant we will have t
 pay interest and also have to pay ot
 the principal in ten years. Stear
 plants are less profitable than water ,h power plants because they cost nor
 to operate. If the water power plant
 have not earned even interest and de
 preciation, as shown by the recent re al port, how can we expect a steam plar
 to be more profitable? From the bes
 information we can get on the mo. .r. efficient steam plants in operation tC -.n day we find that it costs 1A cent
 per k. W. and more obsolete plant w 21. cents k. W. hour and we are to]
 that with the steam plant the assc k, citation can get A cents per k. W. hol
 where now they get % cent per k. :, et hour from the large companies. Tn
 does not mean that we farmers al
 going to get power cheaper than u
 present rates, but we are going
 build this plant for the mining con
 panies to get cheap power and V
 foot the bill.
 The water-power plants ha