Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1928-10-26
Hdrhngen Pdyleys
Talk Sale OF Light
Plant PRO and Con-
Bale Would Wipe Out
SIty Debt, Lower
Service Rates, Meet
OF Women Told

~Specl 70 The Heraldl
anLiNGEN, Oct. 26.-Sale Of the
nafhngen municipal water and ligh.
plant to the Central Power & Lieh,
company which proposition is to be
placed before the voters here Tues
Jay OF next week, would not only
wipe out the $~l,5SO,OOO indebtedness
OF Harlingen, but wouId bring a low.
er water and light rate, according
. 2 statements made by Frank c. Lud-
zen valley manager, at a meeting OF
narilngen women at the women,s
noon.
2 meeting was called by request
% q central Power & Light COM
pany' Tor the purposes of discussing
the roposed sale of the plant.
Mr. Ludden said that a reduced rate
would De IN effect, because Harlin-
gen mas been promised the same rate
Is other cities in the Valley, and the
rate Is being cut throughout the VAL
icy 70 q figure lower than that of
~harlingen's at the present time.
Inc reduction will be from II cents
70 IL cents per kilowatt hour, he
said.
Mr.. Ludden declared that taxes
should be cut TO approximately one
nalt what they are now, because the
central Power & Light company is
offering to assume all the indebted
ness OF the city of Harlingen.
Mentioning the fact that his COM
pany now owns a, large ice plant in
Harrington, and has q big payroll
here, Mr.. Ludden said that the com
pany plans to construct a large cold
storage plant in Harlingen, which
will bring more business and in
crease h amount Of work done here.
In discussing the statement made
here that the Harlingen plant earned
as much as $4,000 over expenses
last year, he said that there is a
difference between earnings and prof
It's. In counting earnings certain
sums must be set aside for deprci-
alton, repairs and improvements.
When that is done, all the excess
cash over cost OF operations may be
used up, and more needed. A sue
cessful utility company privately
owned must take all of these things
into consideration and a municipality
owned plant also should do So"
He declared. in speaking of the
free service" on city lights, ETC.,
that there is no such thing as free
service. Some one, some place, and
IN some way must pay for it. II the
city itself does not pay TO the cleo
trio light and water departments for
what it gets, the bills of private con-
sumers-you, who have city lights
and water service, each month have
to include the cost Of the so-called
free service.
He went into the basis Of valuing
the plant, stating that there is an
investment in il Of S355,977, or $242
for each of the 1863 users Of water
and light in the city.
He mentioned that the charge for
lighting, fire hydrant service, and
other services to the city would be
be s2073.50 a month, "paid by the
city as a whole. not merely by those
who Use electricity and city water"
He declared the power to reduce
rates is fright at home and said
that the history of the company is
n of cutting rates. the present rate
being so per cent less than the rates
once were in the Valley.
The city of Harlingen is now pay
ing S94,S00 annually in interest on
debts, which will be eliminated il
the sale is made to the Central Pow
er & Light company, he concluded.