Palatka daily news. [volume] (Palatka, Fla.) 1919-1994, 1922-08-16
FyBUS|NESS MEN
|PEAREO BEFORE
|E CITY COUNCIL
board to Suits Pending
Boainst Sou. Utilities
Company
|BR PLEA WAS DENIED
,cause Matter Had Not
Been Brought Before
Fathers Before

Pleading for an exhibition OF good
Isiness Judgment, fifteen prominent
|..uaying business men appeared be-
|.,p the city council last night, and,
'ster being heard, their plea was de-
.;.d because of inadequate numbers
\ support it," and because the mat
4, had not been brought to the city
|shers' notice months ago.
Secretary Hart, of the Chamber of
lsmmerce, acted as spokesman in
htroducing the proposal of the del
nation. Mr.. Hart's paper is repeat
IA herewith in full:
HThis body comes before the coun-
il this evening in the belief that you
I'm accept what we have to say, not
h the spirit of criticism, but rather
Il has been my privilege on one pre-
rOus occasion, to assure you that IN
I'M estimation the time is here for
Ia citizens to encourage the council
II cooperation and by counseling
lbat builds rather than tears down.
Al consequence, we pledge you our
harty interest, our support, and ask
bat you accept what we have to say
h tender of hearty cooperation,
br the best interests of what is your
cty as well as ours.
In the controversy now before the
Gty and the Southern Utilities COM
6ny. in the matter of costs of gas
hd light, we are fearful that there
Il to be burden placed on the city
hat by a change in our course we
nay avoid We believe that as good
husness men none Of you will ques-
Hon that a business competently and
F,10micaliy operated is entitled to
fair return on an honest invest
pent We have, therefore, gone into
the matter somewhat in detail, and
at,er considering many contributing
htiuences submit the following for
four consideration:
The Southern Utilities company
9wn and operate electric light plants
h st. Augustine, Sanford, West Palm
Peach and Palm Beach, Fort Myers
ar1 Arcadia, and are paid Is cents
Pr kiloTatt. The electric light
Plant at Daytona, privately owned
fharges Is cents. The company here
Pas not had sufficient returns or
Eher investment to pay a dividenC
PN their cumulative preferred stock
Slnce 1917, which will rather indicate
Rn Improbable investment. We have
IOund on a superficial investigation
Iaat fuel and labor compose approx
lmately % per cent of the total cos
\ operating an electric light plant
Y Palatka. We find that oil useC
l0F fuel is 20 cents per barrel higher
\ cost now thatn il was at the time
.~e council granted the local plant it:
l"St increase. We find that the only
Ieoucuon in operating costs is one o.
~ per cent in freight charges, an;
0'.S reduction is of such recent au
'IoFlzanon as to have no appreciablt
tiect at this time. There is no over
supply Of labor SO far as we can find
-@0 neither do we believe labor cost
4ave been reduced.
We have found that the averagt
return to the present plant at the 13
,sE' per kilowatt rate has only beel
I0'' cents per kilowatt for the cur
rent sold, and this is due to powe
'na street lighting sold at consider
aOiy less than 13 cents. We believ
wa Will agree that any big busines
: compelled to borrow considerably
anu that with money at 8 per cent
interest charges, which go into oper
"',hg costs, have not been reduced.
7oles, wires, transformers and sue
'4uipment when first installed ar
put INTO capital account, under a
--.eountlng system of the Souther
= S"fl'ies cOmpany.( All replacement
4Ue 10 improvements, destruction b
T'O'H' etc, enter into operating cost.
: 'sctically all of these items are a
expensive now as they have been i
several years.
Q Inc franchise granted to tn
southern Utilities company has nc
'ssh capitalized by that company bt
''use the franchise is not exclusiv,