The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1920-02-14
PLANT
CONTRACT IS
NOT FAVORED
Manufacturers of City Given
Opinions on Municipal
Light Plant Suggest De-
probation Figure.
SHOULD EARN ENOUGH

Manufacturers of Richmond believe
the municipal light plant should be
maintained at high point of effic-
iency. Rates should be sufficient to
set aside proper depreciation fund.
The equipment should be adequate for
the present needs and future require
ments.
Many of them are opposed to letting
a contract to the Wayne Light and
Power Co, for the purchase of cur
rent to be distributed by the company
outside the city limits.
Some of the replies to question
naire submitted by the Palladium fol-
low and others will be printed as they
are received:
Suggests Increase in Rates.
& CHARLES A. MCGUIRE, secretary
/ and treasurer of the Ollie & MCGUIRE
Manufacturing Co.-Answering yours
of Feb. IL, regarding municipal light
plant, if the plant under proper man
agement could not be maintained with
the present rates, these should be in
creased There should be a proper
depreciation fund set aside.
Electrical equipment engineers al
ways claim 10 to Is per cent should
be charged for depreciation on ma
chinery of this character. We do not
think less than six per cent should
be considered for depreciation.
An additional unit should be pur-
chased Immediately to offer proper
protection, providing there isn't suf-
ficient margin of protection in view
of local demand. We would not be
in favor of buying additional equip
ment for consumption outside the city.
We are not in favor of the Munich
pal plant contracting with consumers
outside of Richmond through middle
men. Such contracts should be made
direct SO that the plant would have
full benefit Of this outside business.
State Commission Has Power.
w. v. REID president of the Elliott
& Reid company: Replying to your
circular letter of yesterday, regarding
municipal light plant discussion We
reply as follows:
First. We think there should be a
proper depreciation fund set aside but
whether such action would involve an
increase of rates, we think, Is mat
ter to be determined by the state COM
mission that supervises public utilities.
Second. The depreciation charge
should probably not be less than 10
percent but this is a figure that should
be determined by the state commits
sion, which no doubt has data OBJ
tanned from the operation of numer-
Gus plants.
Third. There are, no doubt, times
when the load is almost equal to the
capacity but whether this is for only
short time or not we do not know
and we think a competent engineer
iEg firm should be employed to make
a survey of the plant and its business
to ascertain whether any additional
equipment is needed.
Fourth. 1t Is our understanding
that the plant is not being paid for
by the taxpayers but that revenue
from the consumers is to be sufficient
for all expenses, and We are in favor
Of the plant taking on all the business
it can secure in the city and outside
of the city providing such business
can be handled at profit.
Wants Sufficient Income.
r. B. JENKINS, president of the
Jenkins Vulcan Spring Cot gives us
pleasure to reply to your circular OF
Feb. ~ and to state our views on this
question as follows:
We feel that the municipal light
plant should institute a rate sufficient
to warrant the installation of full and
adequate equipment with very ample
reserve to be used in case Of accident
or breakdown.
We feel that the amount of deprecia
tion figured on should not be less than
1919 per annum, and ample allowances
also should be made for the instalIa
tion of new equipment to take care oi
the natural growth of our population
with 6pman6S for indus
trial current consumption.
We believe that an additional unit
or units should be purchased immed
lately to afford proper protection.
Inasmuch as we understand that the
, policy of the Municipal Light Plant is
not to operate for profit We believe
that the new contracts should not be
entertained, and that existing con
tracts for the supplying of power out
side Of the municipal district should
be cancelled as they expire.
Keeping Equipment Repaired.
Statement of manufacturer who
desires that his lame not be used
We are firmly Of the opinion that the
city should charge sufficient for cur
rent to enable it to set aside proper
depreciation fund. We consider tha
the depreciation fund should be 10%
less whatever amounts are expended
for repairs and renewals and which
are charged direct to operating ex
nense This total charge of 1919 an
rually on the machinery and equip
ment is, in our opinion, the yer,
minimum that should be used for book
keeping purposes and for establishing
cost of current.
AS regards the purchase of an addi
tional unit at this time. our informa
tion is that the present equipment II
sufficient if kept thoroughly in repai
Mt all times. Many improvements ar
doubtless necessary at the plant es
pecially as regards provision for Goa
storage and things of that nature. Blu
the electric producing units them
selves we believe are sufficient If KEEP
entirely effective.
We cannot see the point In takini
on any additional contracts for sup
} plying current to consumers outside o
Richmond. To do SO would probabl.
require additional equipment and nov
is undoubtedly the worst time imagin
!, able for such purchase.
Continued on Page F1ve.1