The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1933-04-28
NEWSPAPERS OPINIONS
HONEST FIGURES

We're not particularly Interested whether, when
Muscle Shoals gets going full blast under govern
ment operation, it ''burns up the power people
and the fertilizer people or not. Both groups We
believe, are reasonably capable OF taking care OF
themselves
But we are deeply interested that the people
shall have honest figures onthis manufacturing by
themselves of electrical power, of fertilizer ana
of any additional by-preducts that may come IRON
this great government business.
We are particularly interested because in the
last couple of years it has been proven that Doth
federal and local governments have fooled their
people the taxpayers about business they were OPP
Grating.
One example has been the barge lines operated
bv the federal government the waterways OF
the Mississippi River valley.
Another example has been in the great differ
ence between ways in which figures have been re-
ported for different municipality operated power
plants.
The people are entitled to know, when comparl-
sons between private management and government
ownership and management are being made wheth-
err or not the comparisons are true and complete.
When they are informed that government-op-
know whether all fair costs have been charged in
that operation oy whether some of the costs are
being paid out of taxes so that balance Of APP
parent but not true profit is shown
What are some of these differences which may
or may not be shown between government owned
and operated business and privately owned and
managed business? .....
Taxes make one great difference. Private bust
ness has to pay taxes to federal government state
government county government, and municipal
government Government business pays none OF
these so that tax receipts of government units are
that much less when government business takes
the place of private business. Taxpayers have -
make up the difference in tax receipts, unless
profits take it up.
Depreciation, yearly charge to cover the wear
ing out of equipment, is another difference. Pr-
vate business has found it must set aside reserve
each year so as to up enough to replace ma
chinery when it wears out. Government businesses
in many cases, including the federal barge lines,
some municipal power plants, and the City of
Goldsboro water supply plant make no such charge
against the income from their operations.
In Goldsboro, some of the income from the wa
ter plant is used indirectly to pay off bonds which
might be considered to pay for the cost of the
plant so that in this particular plant is be-
ing paid for as it wears OUT and, when a new
plant has to be put it, it will supposedly be paid
for with money borrowed new bonds, which III
their turn will be paid off by degrees
But in some municipal or other government-op-
Grated businesses this plant purchase is never paid
for out of gross income and made charge against
the business, but is paid for by the taxpayers
through taxation.
That paragraph preceding brings us to the rea-
son why we are particularly interested that there
shall be correct figuring and public reporting OK
the figures for the operation of Muscle Shoals.
Honest figures may point the way to cheaper
electricity for the people of this country for fev-
tilizers at lower price. That is for the future Is
show, when the proof disproof of the theory
will be found in the facts.
But the taxpayers of this country should not
be taxed in order to produce and sell electrical
power or fertilizer or anything else at less than
cost Nor be fooled in the Observation-Disclosures
News-Argus.