The Little River news., 1922-05-31
THE LIGHT COMPANY
 OPPOSES RATE CUT
Writes Letter in Reply to Chamber of Commerce and Citizens Stating
 COmpany's Position.

for the company, has written an ans wer to the Chamber of Commerce and the petitioners sent them last week in regard to reducing the rate now in effect here back to the old rate in obeyance to an order recently issued cording to the letter the company is unwilling to accede to the reduction. Their position and arguments are set forth fully in the following letter:
 May 27th, 1922. "Mr. G. H. Briant, President, Ashdown
 Chamber of Commerce,
 AshdOwn, Arkansas.
 Dear Sir:
 "Your favor of May 26th, 1922, with petition enclosed, addressed to E. Mansfield Jones, Trustee, has been referred to me as Arkansas repre- sentative of the parties now owning the light plant in your city
 And in connection herewith, beg to state that I regret very much that the citizens of Ashdown take the po- sition that they do with reference to our investment at that place.
 My clients have invested in pro- perty used and useful in the genera tion and distribution of electrical power and energy to consumers Of same of your city, considerable in ex- cess of $60,000.00. The operating re- suits of this property for the year 1920 showed net loss of $3,399.3S, and net loss for the year of 1921 of $1,530.12; for the first four months of this year it shows an operating profit of $4S9.24, leaving however, for the two years and four months net loss on operation of $4 ,44026. This means that in addition to losing interest on the investment for the 2S months cov- cred by the above figures, and in ad- ditiGn to the depreciation on the plant we have been required to put up out side money in actual cash in the oper- atiOn of the plant in order to furnish your people the services which we have rendered, an additional sum of $4,44026 or an average of S15S.50 per month. If you should add to the a. boVe losses, interest at the rate of s per cent per annum on say an invest ment of 6O,OO0.0O, and an additional 5 per cent for depreciation, you will have an additional $1S,20O.OO that the to expect to earn, which it did not earn, or an average of $65O.O0 addi- tional per month loss, making total loss per month of $S0S.5O
 In view of this situation, and until such. time as the operation of the plant will Show better financial results do not feel that my clients would be justified in meeting the demands of your petition.
 | I think your people should know that one of the largest elements ent- ering into the losses which We have been required to sustain in the opera tion of the Ashdown plant is the con- tract under which we have been pumping water for your water dis trict. This contract is negotiable, unfair and unjust, and under it we have been rendering service for ap- proximately $1OO.00 that should have earned us approximately $4O0.OO a month, however, the water consumers of your city, presume, have had the benefit of this unremunerative ser vice upon our part.
 Tn addition thereto the contract un- der which your street lighting has been maintained has required us to furnish this service to your city at approximately $1,O00.00 a year less than it actually cost us to furnish the service.
 And in this connection, beg to ad- wise that under the decree of court confirming the purchase of this pro- perty, in Mir. Jones as Trustee, he was given the right to elect as to whether or not he would continue these two contracts, and as I am advised, made , his election by refusing to take them over, thereby leaving the matter open for negotiation as to what will be paid by your Water District and city and what MT. Jones will receive for this particular service, however, you may expect in the near future, if We are to continue furnishing this service, to arrange to pay reasonable price for same.
 The status of the ownership of the light plant in your city has so chang ed that it will be impossible for us, in the future, to secure contributions | of outside money for the purpose of operating the plant, and We will be forced tO relv unOn the Onerating in- |