The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1938-05-21

thereby teaching the absolute accuracy ana lhSio
liability of the Old Testament--Dr. R. A. Torrey
RURAL ELECTRIFIcATIoN
speakiug to the Hendersonville Kiwanis
Club, John Paul Lucas, Vice President OF
the Duke Power Company, indicated the
way in which rural conditions can be i'm:
proved and made more satisfactory Tor
farmers by the use of. electric power lie
cited specific cases showing how farmers
were pfofting by placing Freddy Kilowat"
ON their farm payrolls, which is another
way of stating that electric power applied
to farm needs and to the relief of the labor
load the rural districts have been carrying,
enables farmers to get more work done
with less effort and at an actual saving OF
dollars. --- e..
Mr. Lucas voiced the opinion that i'm
portant changes now developing in the
country districts will continue and the
farmers of the future right here in the
Caro1inas will live under conditions greatly
changed from the present. He believes
electric power will have a large part in the
transformation which is assuredly going to
take place in the country.
Mr.. Lucas then proceeded by the use OF
charts and facts and figures to show his
hearers how the costs of electric current
have decreased in late years. This in a
large measure is due ito the expansion of
the power business, to the increase in
"load'', or volume of business. This basic
fact of industry and business, of course,
applies in nearly all lines-increase in the
volume of gross business, or increase in
the number of units produced in manufac-
turing, makes possible lower prices.
This is one of the reasons for power
company interest in the development of
the rural electrifcation movement. Power
companies want more business-more than
eanfuslally be obtained in urban areas
and wherever rural districts can be opened
up to power development, the Duke Com.
pany has always been quick to accept the
opportunity for expansion and the build
ing up Of it's volume Of business. "
However, as Mr.. Lucas also made plain
to his auditors, there are certain limits
within which the power company must
labor in making these rural developments
He Stated that in the case OF his own com.
pany the largest item of expense is interest
on the large investment which the com.
pany has in plants, equipment and distri-
button systems. The next largest item ot
expense is labor costs and the third largest
expense item is taxes. Taxes amount to
20 per cent. of the gross receipts Of the
Duke Company. One-fifth of the money
customers pay for power service is COB.
bled up by the tax-gatherers
The building of rural power lines costs
hundreds of dollars per mile. That is the
investment Of capital in the business, and
neither the1power company or anyone else
is going to- make that investment unless
there is reasonable assurance that it viii
pay dividends. To this must be added the
costs Of supplying current after distribu
tion systems are constructed. 1t costs more ore
of course, to supply electric service II
sparsely settled rural districts than N
towns and cities. In the last named area.
there may be scores or hundreds of Gus
toners connected with each mile of distri
button facilities. In the country district.
the number of customers per mile is com
paratNely small s'-'' q ,-''-'''
This is the reasonable explanation of tn,
fact that many rural districts do not ge
electric service. The possible number O
customers and their limit of purchasing
power does not assure, IN some cases, tn
costs of distribution, or the costs plus re
turns on the Investment. ''' 8, - ?.
1t is well for all the people eyerywher
to understand these basic facts in reegar,
to the great and growing power industry
t..st r@e $3.50 &-ea = c5st,sGy trcsssf z