Graham guardian., 1921-05-27

I'm Sanford Is at stake, ana II tney can
not save it, the town or the people
must. To put either the light or water
plant in proper condition to give rea-
sonable service will require an outlay
Of considerable money. This cannot be
done in any event until the period OF
redemption has expired. Hence, we
cannot expect any great relief until
this time has elapsed. But we can
safely get ready for that time, put the
house in order, and wait until the time
comes.
To furnish reasonable water service
at all times will require considerable
increase in the present storage capacity
of the plant. II will also require the
dew lopment of more water and the in
stallatlon of pipe lines from the pres
ent intake to the springs that supply
the water. AS to the light plant. we
hear a great deal about worthless en-
gines. The engines now in use con.
stitute but small part of the cost of
the plant. If we consider that at the
time of the purchase of the engines.
they were the only ones obtainable be-
cause of the financial condition Of the
company, and the further fact that at
that time the peak load they had to
bear. that Is the greatest load they
would carry at any time, day or night,
was not as great as is now the ordinary
| day load, we will see that the criticisms
made are not founded on real merit.
But be that as it may, If the engines
will not do the work, engines must be
secured that win do it. In any event.
it will be necessary to add another unit
| to the plant to secure continuous serv-
! ice that is satisfactory. We direct
your attention to these facts, because
they should be known and understood.
What these improvements will cost we
do not attempt to estimate. They will.
of course, depend on the extent of the
improvement. But the cost will be
spread over considerable length of
! time, and we believe that by careful
businesslike management the plant
will pay considerable part of the cost.
What we wish to show you is the
COST of the entire plant to date, its
VALUE as determined by the records
and fixed by the Corporation Commits
sion, and finally to suggest some meth,
DDS whereby it can be saved to the
town. sG.r IN
Few people realize the cost of
public utility. No doubt you have heard
many expressions of opinion by persons
who, if they knew all they told, would
be big consulting engineers for great
construction projects. What we are
stating to you is taken from the records
of the company, and these records are
open to your inspection. The water
plant has cost to date of December 81,
1920, the sum Of $98, 1853. 80. We have
no accurate data as to the cost of the
light plant, but on that date it was re-
turned TO the Corporation Commission
with value of $52, ,77l.8l, less de-
probation. Hence, its cost would have
been considerable more. On that date
the physical valuation of the plant was
returned at SITS, ,0l09l, from which
was deducted depreciation of S43,-
454.56, leaving net physical valuation
of Sl34, 556. .36. These are not puffer's
figures or inflated values placed for the
purposes of sale, but are figures care
fully scrutinized by the accountants of
the Corporation Commission and must
be supported by the books and accounts
of the company. At the present high
price of pipe supplies. of machinery,
ami distribution supplies, wire and
other commodities, THIS PLANT
CANNOT BE REPLACED SHORT
OF One Hundred Fifty Thousand Dol
lars. Will some of our self-appointed.
consulting engineers figure 1t out?
No doubt considerable money has
been spent in experimentation that
gave little result. Possibly some spent
foolishly. Perhaps great deal Of
money has been raised which went into
organization cost. promoters profits,
and other costs that added nothing to
the value of the plant. But these
| figures are the cost that has actually
gone into the plant and added to its
ualue.
Let us next consider the cost of op-
GRAFTON and the revenue derived from
the plant during the past twelve months.
We do not attempt to go back of that
date. but the records are open to any
one who wishes to do so. During the
eight months from April, 1920. to No
vember, 1920, the total cost of opera
tion was $l4, l74.35 and the revenue
$40, 5l3.49, leaving profit of Sc, 339. Ia.
Under the present receiver, the last
four months, from December, 1920. to
March, 1921, inclusive. shows total
cost of operation of $6.903.0l and a
total revenue of $ll.l48.O2, leaving a
profit balance of $4.245,0l. or nearly
81, 100 per month. We give you these
| figures for the purpose of showing you
that the concernis under careful man
agement can be made 10 pay good
return on the investment required to
keep it in operation. The expenditures
during the first eight months of 1920
show many items which might possibly
have been avoided, possibly some items
not part of legitimate expense of op-
GRAFTON. With these matters and with
the question Of where the money has
gone. we are not concerned. That is
past and done. The months under the
receiver have been exceptionally heavy
months. Litigation, necessarily added
equipment, and other unusual contin-
gencies have added to the cost. But
the receivership has demonstrated be-
yond doubt that the concern can be
made to pay. 1t is not ''Get-Rich
Quick Wallingford' scheme, but is
proposition that with careful. manage
ment and cooperation. should yield
good, safe return on the investment.
With the foregoing statements in
mind. we offer the following suggestions
as to the disposal of the property:
First, we believe the T0W N
SHOULD OWN THE PLANT. We