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

especial to The HerAldl
nAhLiNGEN, Oct. 26.-Sale of the
Hariingen municipal water and ligh,
plant to the Central Power & Light
company. which proposition is to be
placed before the voters here Tues
oay OF next week, would not only
wipe out the $l,5sO,0Oo indebtedness
OF Harlingen, but woulo bring a low
er water and light rate, according
70 statements made by Frank c. Lud-
1en valley manager, at a meeting Of
aariingen women at the women's
ciub building here Wednesday after
noon.
The meeting was called by request
OF the Central Power & Light COM
pany, for the purposes of discussing
the proposed sale of the plant.
Mr.. Ludden said that a reduced rate
would be IN effect, because Harlin-
gen mas been promised the same rate
as other cities in the Valley, and the
rate Is being cut throughout the VAL
icy to a figure lower than that OF
harlingen's at the present time.
The reduction will be from IA cents
TO II cents per kilowatt hour, he
said.
Mr.. Ludden declared that taxes
should be cut to approximately one
nan what they are now, because the
Central Power d Light company is
offering to assume all the indebted
ness OF the city of Harlingen.
Mentioning the fact that his COM
pahy now owns a large ice plant in
harlingen, and has a big payroll
here, Mr.. Ludden said that the com
pany plans to construct a large cold
storage plant in Harlingen, which
viii bring more business and in
crease the 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 NAV b.
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.,
h a there is no such thing as free
service. Some one, some place, and
IN some way must pay for il. If the
city itself does not pay to the cleo
trio light and water departments for
what it gets, the bills of private con-
suIiers-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 it 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 S20T3.50 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 right 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 if
the sale is made to the Central Pow
er & Light company, he concluded.