Carolina watchman. [volume] (Salisbury, N.C.) 1871-1937, 1932-04-15

would be allowed to supply current
to the various industries in and around
Salisbury, from which it is estimated
a profit of approximately $65,oo0 per
year could be secured-so that the ul-
innate benefit t the city will be ap-
$4,000 per year, all of
which will enable the city to greatly
reduce the tax burden upon its citi-
Zens.
Some criticism was made in the ar
ticles appearing on the term of the
contract, thirty years. In answer to
this l would say that a calculation
would readily show that bonds retired
in a shorter period, say fifteen years,
would Immediately so reduce the an
nual profits that substantial benefit
would not be had for several years;
therefore, the term of the contract is
made for a longer period and the city
gets immediate benefit of the earnings
of the company. The legislature SEEM
ed to think that thirty years was the
proper term for such a contract, for
it passed a statute authorizing cities
to contract for thirty years for wa
ter or for electric lights. Also, if the
city was building its own plant and
putting its own money into the plant
it would issue bonds to run for thir-
ty years. 1t would contract with the
bond holders for a term of thirty
years and, besides contracting to pay
the interest and retire the bonds would
in effect, be contracting to operate
and maintain its plant for that num-
Der of years.
Under the present plan the city is
not asked to put in a dime; is not ask
ed to undertake the operation of the
plant; is not, in fact, asked to do any
thing except buy current at a reduced
rate and to share in the profits of the
company and receive the company at
the end of the time for the payment
$1,000. All of the cities with whom
are made will at the end of
the term own an amount In the COM
oany equal of the amount of current
which they have paid and the plant
then be operated by the cities to
heir entire mutual benefit and profit.
During the life of the contract the
cities are to have representatives on the
committee of the corporation
md to be in close touch with the cor
ooration's operations; to have full &C
cess 20 the books of the corporation,
and to assist in the direction of the
of the corporation. The corpo-
ration is not to be a power company
for the sale of current in competition
with other power companies, but is
to be operated for the benefit of the
One of your correspondents seems
to think that in the near future cleo
trio power may be obtained from the
air, off radios, Or from some other like
source; but we believe that he will
find, if he will take the trouble to in
vestigate, that, except for certain i'm
provements in design and construc-
ton, the steam engine is today the
same as that first used, and the dvna-
NOES and other means of producing
electrical energy are constructed on
the same plan as the first one invent
ed. The only real improvement that
has been made is the transmission of
current, and | feel sure hat the pro-
posed company will during the life of
the contract keep pace with all mod
ern Improvements. How else will those
advancing the money for this enter
prise make their profit; and for every
sixty cents they make the cities will
make forty ents.
l wish to thank our people for the
fine cooperation during cleanup-week.
We hauled more loads of trash last
week than has ever been hauled dur
ing any clean-up-week that we have
record of.
Yours very truly,
B. V. HEDRICK, Mayor.