Norwich bulletin., 1921-03-30

street, oreenevflle = This main Otll be shortly placed in commission and win improve the eGs supply for Greenevilie.
 In addition. another section of the compressed Afr pipe line extendins from Franklin square to Thamet e1uare has in commission. this will improve the gas supply to the West Side.
 Regarding electricity, Improvement ls to De made in the secondary distrfbotioh system which VIII ifaprovs voitAFe reg ulation especially for dosnestic HshtInr Adjacent te the slectrsc bower station and additional large step-op transform -ers have recently beeA delivered These transformers supply enerEy to the large power users and tbei installation, viii permit of additional load being taken on and as we'll as to avoid the liability of a shut down due 10 c burn out Of oas of the tranefofmefA
 to) Conserving ihe clty'H invehtment- The members Of this exchmissioN are strongly of the opinion that the invest ment which the city of NorNich has in It's gae and Elketrie deparfhnent can best pc conserved by fpaintslninf the physical property at AH tinee In | hrst class condition throHxh, proper repairs and re- l placements and also by the depdrfment'f stan being composed of efficleht, eaeaDit | and experienced empioyks.
 (c) Reduction Ia the cost of opera l tion-There has 5hst bean a reduction la l the cost of RAs oil and from the prksen, market conditiens t would appear V. VIII pc abie to contfact for steam coal | Tor the coming year at A lover rnte than - contracted t fer,the present year. n would also appear that we vfii be sbl, to contract fo. coke at ( IotFer rat, upon the expiration ot oar existing cos, | tract which wtH be in IunE fhere hs, as yet been 10 indication Of reduction in the price of labor. Fhere win be , \ saving ia the salary of The eas eaRfneel vno has recently resigned and the fee, to the consulting engineer win cease aft I er next month. There is q matter re gerdins the method of accounting whgcl edds materially to, the eost Of operatio. cf the plant and which we consider -un !, In the past the entire cost c, Srnev., and replactmenfs have been eharked i eperatiAg eRFenses and in addition 5 re cent depreciation has been written of which really means that the debrAeiattp
 pas reen written oR twice iA the eof
 tioh of the plant which has been renzwe or replaced. We recemmend that In fu
 thre certain portion of reaeWals m | reBlaeemeats be charged to capital as count, that is, the extension of sth , plant, in the following manner. Renewai and replacemeAts vfI be added to m
 cost of the plant and a fhlf value of th : oid pertiens of the plant thus replace
 VIII be deducted from the cost of th plant. This chanRe in bookkeepfnr vvi
 reduce the operating ekpehse of the di
 pAftfnent and Will give, what the con / Hissiohers consider q fnore nearly eo,
 rect method of accounting.
 | fd) kedactioh of present rates-r
 statute the department is compelled
 earn 5 per cent. q thk Cost of th
 City's investment" There have been V, l rious interpretations Of the meaniAk
 "City's investment"
 First. When the city AFst aeaaIfed q . plant this vas suspcssi i to mean n
 eaaity Of redemption which ehankl
 from year to year as extensions we,
 made and depreciation was written o
 Five per cent. profit on this basis VI
 comparatively small hkare.
 Second. A certified public aceounta
 in. 1913 interpreted Cost of City's i ? vestment" as meaning the amount
 bonds and hotes issued by the city f the pufchasA Of the plant ana extensfo,
 to the plant This omitted the unAerf
 ing mortgage of S4b6, ,t66. Five Der eef v ie1fe.
 Fnifd.. An AdSnhsiblg Interpretation .. Cost Of Cfty's ifvestnaent'' is the bo
 value of the plant which changes fro year to year as extensions Are faaffs al
 depreeIatioh B deducted. Tbis inSIaa
 the> $40e goo underlying mortgage. { '. this basis 5 per cent profit means th 70 the gas and Electrical department rsl = earn in round members x55 ,0e0 durir 70 the coming yEaf.
 Fl With gas sold at loss and the mi 'S uSihg electric power, either idle Tor Q l. efatng on much smaller scale tn, se during the war there is no irnmedia Iy prospect ,of r,&cinE thAs rate for e l. and electricity although an equal reven
 might be derived by possible change sz rates.
 l. It must Be borne in mind eiectfiei, ss could be sold at lower rates, both fl i, lighting and for power. if the elect, IS department were not obliged to ma b. good the losses of the sas plant. ,el The earnings of the department for |
 Sale of eleetrieity for the existing ye n have been very materially reduced at the slowing up of the industrial mont
 of the departments two largest BOW ,s consumers, namely the Winchester Wo a. en mills and the Norwich WooIeH mil a These two mills have just recently i 1f sanhed partial operation and there h EaI been q recent increase in the aFiaeu sr of power sold to some of the other C,
 toners. The probable date when the .s will be reduction if the cost 6f eIt ,s trfc energy will depend largely upon i cost of coal upon the Anseant of stier at sold upon the state Of business of t Ss industries of Norwich as well As m ss the cost which the department Will Et Obliged to pay for labor, supplies Ac.
 In connection with this whole ma Of redHcihE rates there is some mo. nj tainty as to the meaning Of the cost sa the plant" Sn which 5 per cent. dep, sa eiAtton is to be charked as an expen U First. When the plant was aeduii ss this vas taken to mean the eduIty exemption which at the beginning w
 S22f,too. On this basis per cent.
 hgare.
 Second. A certtned 1usHe acen,Ht.
 in 1918 interpreted @cost 6t piant' t1
 clude the underlying rnortsafe of $40 as eeo. The incfe~sey In depreciation s euitinE from the inclusion o{ the k1e
 gee in the cost of the piant fnaas
 large increase ih the depreciation cha
 es, The certified public aceountAnt f
 commended thAt after sfeb ,bo1 had b,
 added to the "c0st of the pisdt' il
 depreciation should be charged On
 book value fesultihs from this ad6it B Of &40e,e00 glHs extensions to the 6i; 3 less depreesatsoh. D. ter Increase the debAftniehtss 4
 ciency in'Ans ~ay-tn answ4rs ta). q
 tels ana leQ thzrx has been implied
 ereaAins tfneieneV, T6 what, has Bl Implied may Be aaaed the eAskfai sci ~ ton Of nsAnksefieal. accounting, sup
 visory and operating employees.