The Washburn times. [volume] (Washburn, Wis.) 1896-1976, 1920-03-25
Washburn. Thursday. March 25th. 1920
Others Poor at Guessing

/
the two public utilities should
the city decide to purchase, re-
ferred to by our worthy frienC
and competitor Capt. Peavey ir
the News of last Friday. was
hardly worse guess than that
made by Capt. Peavey in his
article when he said "A fail
present value of the water works
plant would be s28,0OO."
If the dear Captain will take
time to take another look at oul
article he will discover that in
our compilation of figures giving
the net earnings of the two com
panies we DID NOT deduct &c.
10000 interest on bonded in.
debtedness, nor did we even de-
duct $3O7. .49 which the company
claimed to have paid as interest
on floating debt, in arriving at
the net income, and had we de-
Quoted these two amounts, in
stead of leaving a deficit for the
first year of $6607.00 as we
stated, the amount would run
over 100000.
We are willing to bet Captain
Peavey the two best stogies Fox
Brothers sell, that the guess of
the Times will be closer than
the guess of the News when the
Railway Commission sets the
price.
In our article last week we did
not mean to get mixed up in any
argument over the merits or de-
merits of the utility purchase
question, but we did try and give
a few figures for heguidance of
the voter.
What may have transpired 33
years ago in-relation to our pub
lie utilities will have no bearing
whatever on the purchase price,
for in 1910 the Railway Com
mission determines, after an ap-
praisal Of the property, that the
physical valuation of the water
works company was $63. 3.803. 90,
and it is not likely they will re-
verse themselves when they
come to make another valuation
of the property. At the same
time the water company figured
their cost 500, 10000.
We will not attempt to defend
any policy which either company
has pursued since their utilities
were established, for in the pur-
chase by the city, personal
grievances will not be taken into
consideration by the railway
commission in determining the
price. The city will pay, should
the voters decide to purchase,
just what the railway commits
sion sets as the figure, and no
more and no less, and they will
pay for water and lights what
the railway commission decides
as the fair figure.
So far as the Times is con-
cerned we do not give a whit"
whether the city decides to buy
or not, but one thing we do
know is that every user of water
and lights in the city of Wash
burn will pay the price set by
the Railway Commission for
twenty years and that price will
be the amount necessary for
operating expenses, interest
charges and sinking fund to pay
off bonded indebtedness which
the city will have to place on
the properties should we decide
to buy. The users pay for the
plant and when it is paid for
will make a present of it to the
city. Whether that amount be
$l1O, 100 or $3.50, 900 it will double
itself in 20 years at an interest
rate even as low as 5 per cent.
| The funny part of this whole
affair, so far as it relates to the
Washburn Water company, is
that w. G. Maxcy wants to sell
and the News, as well as others.
want to buy, and both know the
Railway Commission is supreme
when it comes to fixing the sell
ing or buying price.