The Daily Alaska empire., 1947-03-31

done, and net profits S63,45o. Let us suppose that net profits will continue to be high, which is not likely. Give this company the same net profit fer the first year under municipal operation Add to this figure the sure savings of s3S,ssS in Federal income taxes current, etc, which the city wouldn't have to pay and you have total of S102,3 ,338 the municipal utility's net profit.
 Out of this the city operation would have the following deductions expenses to meet:
 payment of S45,0O0 on the principal of the $500 00O bond issue fgurng to retire in 20 years). 4 payment of S27,000 which would be interest the bonds at Lsr cent. Deduct S16,00O for the lower rate which went into effect this year. De- duct another S20,000 for higher wages which would have Co be paid the year under the latest contract with the workers. Deduct another Sl5,O00 for an appraisal of the property for the bonding company. Total expenses would be Sl23,000. The loss would he s20,662
 Where will the money come from? From the people who will pay for it in higher rates.
 But that isn't all. The old Hume has to be rebuilt. Engineer Walter stuart, spokesman for the public power group says it will cost S35.0O0 contractor who has been expecting to bid on the job says it will cost at least S50OO0 It cost almost that much to build in 1912-13
 Now the operating deficit which must be made up through higher rates amounts to than S500 900.
 Add the increased maintenance and other pairs which have net been made in recent years because of lack of labor and materials and the deficit becomes bigger.
 Another thing to thinh apout. Knowing that additional diesel electric power generating unit will have to be constructed in the event the Alaska Juneau mine reopens folds completely, the private company has built up reserve fund for this very purpose of than S50O,0O0. Such a plant would probably cost million dollars today. Where would the city get that money That lush fund wouldn't go to the city.
 It would be poor investment. The asking price of S90O,0OO is far toe high for what it will buy-a broken down distributing system, old poles and rotten wires Don't take word fer this statement. Just take walk around town and look at the poles and the wires. Then your own judgment. Public utility expert stuart admits this when he says "S90O000 is a high value fer the electric system" Yet he wants to buy it. Why? Could it be that he is interested in job?
 Why is the Alaska Electric Light and Power Company silent this proposition? We'll tell ycu why Because it is the craziest and most lucrative deal that has been offered to any pany. They'd be foolish to oppose this fine prof
 
 S5O0OOO reserve fund and merchandising business. Dc you think for minute that if this utility such a gold mine it is said to be by the public power enthusiasts that the company would let go of it without fight? The few stockhold- of this company would have Sl,40O GOO to divvy up-thats real money.
 It would be easy of course te boost the electric rates and pay off a bond issue of much more than S900, ,030 The people would have to pay or go back to kerosene lamps and wood and coal.
 But remember this You pretty well sured of cheap and fair rate under private opera ton because your City Council has the right to regulate rates. You rarely rates go up under private ownershp-they go only way, down. \ recent rate reduction forced by the City Council saves the people S16,000 year.
 We believe there will be overwhelming vote against this proposal providing large vote is east Be and cast your vote tomorrow.