Norwich bulletin., 1920-03-13
GROSS EXAMINATION ON t. & E. PLANT
 ENL|vENS THE SPECIAL CITY MEETING

ed but if it keeps on increasing busi- ness it will soon be in a position to ab- | sorb others.
 What is the Cost?
 There is one question I would like answered. said Mir Merin as he en- tered the discussion. What is the price per kilowatt of manufacturing electricity at the city plant?"
 MT. Shea: It would take an expert to tell that.
 priced expert. Hasn't he been able to tell you? Most of the business rail- ures are because men don't know the cost of doing business. We may have paper profits, but they don't pay bills. 1 Are we kidding ourselves? How can you tell us you are making money if | you don't know what it costs to pro- duce the goods?
 1 MT. Shea answered that it had been figured three years ago by experts | that the Norwich plant was produc- ing electricity for less than they could buy it. If at the end of the year. we have paid our bills and have a little balance, we are making money | Commissioner Jensen stated that the costs of making electricity were at the | office where people could see them. The plant has shown a profit of s160, S43 up to April 30 and has made 5000 | this year up to Dec. 30. It may not have to touch a penny of this $23000 but if it does will pay it back. Under the legislative and other restrictions under which it has to operate it can
 not do business on business principles. It should have the right to borrow for working capital at the beginning of the h; hoe t,af1 TOO from its capital for betterments.
 In answer to Alderman Pendleton's question, MT. Jensen said the plant
 would certainly show on the right side of the ledger if it sold out, even at .
 valuation much smaller than might sproperly be placed on it.
 Mir. .Morin asked if what we have
 lost in taxes that would have been
 collected under private ownership had
 been more than offset by what the
 plant had made. He was surprised the commissioners are so little in-
 formed about the conduct of the busi-
 ness. It looked like long ways from
 good business mind. We certainly
 have got to supply this money, he said MT. Jensen: There is no question but that the taxes lost are far in exces. of what we have made. . Mir Morin: Then we have not made money.
 [ Mir. Jensen: Still we are making l; , profit, separate from that.
 MT. Morin: lou can't separate them
 As municipal proposition it's loss
 as business proposition it's a loss
 It's mind profit. Have you investi gated whether it is cheaper to bu, power than to make it with all tn e incidental troubles? . MT. Jensen: It looks as if the cit T could make it cheaper than buy f
 Next year ought to be a banner veal s We certainly get better street light II than before. and 1t costs the city n g more.
 Il MT. Morin: Have you any knowledg
 on this point under existing condl IT tions?
 e Mir. Jensen: We have received n e offer
 g Mir. Morin: What want to find or ,e is whether we are getting the cheape. electricity we can. |, The meeting adjourned at o'cloc 7, =. after passing the general vote author -o izing the appropriations. I. MT. Morin was applaudpd when ! l started his cross examination, and NJ ~ Shea also was given applause for son ,f of his answers.