Newspapers / Wilmington Morning Star (Wilmington, … / Dec. 18, 1913, edition 1 / Page 2
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FAGKE2 OTA At Meeting of City Council Yesterday With Reference to Commercial and Municipal Lighting Municipal Lighting Plant by Mr. Raymond Hunt. I 'have asked Councilman Wood certain questions in order to clarify the atmosphere so that I might talk directly to the point. I believe that the members of this Council, repre senting as they do the best interests of all of the citizens of Wilmington, will be -free from prejudice, and will 'avoid being influenced by preconceiv ed ideas "which may have been .based on incomplete or erroneous informa tion furnished them by others. - There was much talk throughout the country, five or ten years ago about municipal lighting- plants. The sub ject was carefully, studied and experi ments tried s both tin. this country and abroad, y A commission which was sent from the United 'States to study the subject of municipal lighting plants of -Europe returned and report ed that the sentiment j:here after long trials, under conditions more satis factory than obtained in the United States.vwas not -favorable to munici pally managed - lighting plants. In this, country perhaps- from 90 to 95 per cent of all of the progressive cities in the United -States are lighted by private corporations. Had municipal lighting-plants been better for the cit izens than the privately owned plants, undoubtedly- progressive- cities like Atlanta, Charlotte Richmond, Balti more, Philadelphia, New York and boston',' would -have adopted them. There are,, of course; exceptions to all rules, but these . exceptions can be covered with 5 per cent, of the total number," and the 95 ; per , cent, estab lishes the rule. " It is true that towns which are too small to prove attractive to private in vestors, - are -often lighted by small municipally owned plants; and in some cases especially where nearby water powers were available- thev . OAU.aU Tiave ;been -operated successfully. I have-here a book containing a list of 20& defunct -municipal lighting plants in the United States. In the Middle western -States; where the idea has , been more frequently tried out than elsewhere, and where the people are far; more , progressive and up-to-date in legislation than in the older States, the failures have been in the greatest number. They have adopted as a bet ter and-more effective plan the pri vately ownea ngnung corporations, under - the control of public service 'commissions which can prevent un reasonable' charges and, compel good service, v V: In . this connection I was told, by the: Commissioner . of Corporations of the United States, within the past two 'weeks, that, in the Western State from -which he came, when a" public service corporation placed itself un ier the corporation commission it was immediately given an exclusive and indeterminate or perpetual fran chise. In others words no competition was4 allowed; but the rates and the service were under the control of the commission. . . - r Last year, at our - request, the Pub lic Utility Corporations of North Caro lina were placed under control of the Corporation Commission. ;I will refer to a. few of the muni cipally operated plants in North Car olina which have been abandoned: ;G2dsbiro N- C. In the - Electrical Wbrld of . May . 18, 1912, it was stated that the municipal electric light plant has been purchased by the -Carolina Power Company, of Raleigh, for $125, 000, .'which includes a 60-year fran chise for lighting the city and for fur nishing electricity for lamps and com mercial purposes.' ' The editor of the Goldsboro Head light writes as follows : " .'The local lighting plant was found to be inadequate to present demands, requiring an additional outlay of $30 00,. which the city did not have to expend. -The efficiency of its manage ment; jwas handicapped by politics, and lack of funds to make improve ments. "1 consuniers - had to pay" more for-light than under private manage ment..' Altogether the service was un satisfactory." - Gastonia, N. C-r-The mayor writes in explanation of the shutting down of the generating plant: iAWe stalled our lighting plant in 1900 and eener&tad r until 1906. At that time we found that wenad outgrown our generating plant and Jth$twe could contract for our current cheaner than. wo nuii in,n additional apparatus and generate the same.?. ; - . Cra; that may 4e mentioned are High Point; N C; Statesville. N. C. : Wadeshoro, N C. :- An interesting case: among many othets Is that of Dalton Ga. t , Dalton. Ga.-?A franchise was Want - ed in Jehruary, 1913, to the Georgia Railway &' Light Company to furnish )ower'Tforsthe "Dalton municipal elec trio i lighting- plant. This - plant was installed In 1903. The. editor of the Dalton Citizen says In a letter: 5. -.'8q tar 'as ; Dalton is concerned, municipal; ownership is a complete failure;- Dalton has about 7,000 people and .own its-- waterworks, . electric plant and-gaa wbrkB.:- Neither one of , inese-. eacejpnsea' pay- - i ne cmef rea- qh wis j -ju-e inemcienny man aged;, another reason is that the plants i were.- oadljr ; constructed as a result J of very, poor engineering. This kind jptiaUt4 ft '-jrlYatf .corDpratlpu. A EMEN President of The Tide Water Power Co. . ' ;V -1 I :H- J '.:;'! ..!OC.. .lit" . ! ' V : " . ''' ' private corporation would have gone about the building of . these plants in a business-like way with contracts drawn so that the plants would be up-to-date and absolutely efficient. "Municipal ownership is not the success it should be because too little attention is paid it by those govern ing the city. There are a great many towns in this State that own the pub lic utilities, and there is only one of them that, to my knowledge, broke even last year, at the same time ren dering service that the people . de manded. In this connection I will state that at one time I was heartily in sympathy with municipal owner ship; but seeing its complete failure as a result of bad management and inattention, I have come to the con clusion that it is a failure." A" soap box primary showed that a large majority of the citizens favored selling the municipal electric light and water plants. One voter wrote on his ticket. "Can't sell: give it away and stop expense." It is presumed that most of these 208 examples of defunct municipal lighting plants were operated without competition and failed because of in efficient management. It is my belief that the Tide Water Power Co., is today making a success of its busi ness entirely because of a degree of efficiency wnich it would be imprac ticable to give to any municipal light plant on account of the changes brought about by frequent changes of administration And of policy ; and . the necessity of giving experience to new men . .with new theories. The men who are operating the Tide Water Power Company today were originally trained or educated for this kind of work, and they have given effective continuous service to the company for periods ranging from eleven to 16 years. There is not a man connected . m wn e company from track hand to manager who in the opinion of the Board of Directors could be replaced advantageously. The organization "as been favorably commented upon ff8?7,1.1?18? 7 experts who have vis- ed -Wilmington in connection with 5,m"liM-lu"s 01 Fe company s prop- erties made at times when bond is sues were offered to bankers. The same favorable comment has been made in regard to the up-to-date and efficient , equipment of the company's power house and other property; so that I feel safe in saying that today there is no plant of this size in the Southern States - giving the public under similar conditions, better ser vice at less cost. Messrs. N. W. Hal sey & Co., Bankers of New York City, and among the largest distributors of securities in this country, have paid the Tide Water Power Company the compliment of using it as one of ten public service corporations In the United States to illustrate well man aged public service corporations, and stating that securities of this kind were most highly recommended among the classes of investments. To a considerable degree the finan cial reputation of the Tide Water Power Company has helped the finan cial reputation of the city of Wilming ton. Mr. Forbes, of N. W. Harris & Co., stated to me that he was largely influenced in purchasing the issue of Wilmington City . bonds, at a' good price, by the investigations which his experts had made of the Tide WJater Power Co., on a previous occasion. The preferred stock and bonds of the Tide Water Power Co. have been of fered and sold throughout Pennsyl vaniaNew York and New England by bankers of high reputation and. under their unqualified recommendation; In doing this they have, of course, said all that could be said for the City of Wilmington. Therefore in the minds of the investing public reached by these bankers the reputations of the City of Wilmington and the Tide Wa ter Power Company have stood and now stand together. When the - Consolidated Railways, Light & Power Co. ; was originally formed, it eliminated a fight between two or three corporations which fight was destroying tnese corporations and doing the city no good; in fact, those of you who can remember these con ditions will not recall: that Wilming-. ton was then a progressive .city. The plants purchased had become so ob solete that they . were abandoned as soon as possible. If today we were operating with the same class of equipment, we would be losing money and giving such miserable service that the public would be jusuued in rebel ling against it; but at present there is not a piece of the old plant in ex istence, unless it be one small gene rator held as a reserve and which will he "iunked" within si months?. By using the most modern machinery and equipment of ample capacity, the Tide .Water Power Co. ;b.as- been able to carry out the policy of at the same time improving the. service and reduc ing the cost to - the public; and by making ' these reductions, over . a .per iod of ten years, when they were not demanded, the : company is now - in a position to submit the following facts and figures, and does so knowing that they can not be fairly criticised and with satisfaction at the results ob tained: ;. 1. As regards the lighting which: was done for the city in thelolden days, before the formation of the ; Consoli dated Railways Light & Power Co., each atc light cost the ,city of Wil mington 110 per year. These arcs were not ' nearly- .Bomcient as tne 'present arcs, The present a,rc lamps THE MORNING STAR, WTLMINOTON, N. C.,TH D RSDAY, DECICM BER 18, 191 OF are operated at a cost to the city of $57 each per year and a cost to the Tide Water Power Co. of $71.85. A loss of $14.85 per arc. The total cost sheet , is submitted herewith and shows the plant expense (which in cludes fuel, repairs, labor, etc.) $13.60 per arc; general and distribu tion expense (which includes store room expense, accidents, damage, su perintendence, insurance, bookkeep ing, etc.) $6.60 per arc; investment expense (which includes 6 per cent, on that part of the plant necessary to run the arc lamps, depreciation at 5 per cent, on the same, proportional taxes, and the pole taxes) $37.90 per arc: total $71.85 per arc. The loss to the Tide Water Power Co. of $14.85 per arc on 125 lamps is a total loss of $1,856.25. The cost of Tungsten ngnts ngured out in toe same man ner, show a cost of $9.60 per light per year and the company receives $10.30 per light per year, or a profit of 70 cents per light on 611 lights, making a gain of $427.70. This leaves a net loss on the combined arcs and Tung stens of $1,428.55. The figures sub mitted may be referred to any engi neer of reputation and will be sub stantiated. In regard to private, lighting a rea sonable profit is made as we believe through efficiency of management. The prices charged will .compare fa vorably with those of Raleigh, Golds borq and Asheville, which cities are being supplied with light by water power companies. It should also be kept in mind that electric current furnished . for a. steam plant is more satisractory, more continuous, and more to be relied upon -than that fur nished by a water power plant where interruptions are irequent and an noying. In regard to rates for power we can demonstrate that the Tide Water Power Co.'s rates will compare fa vorably with those given in Raleigh, uoiasDoro ana Asneviie. These state ments we will be glad to have verified Dy experts. Under these conditions Mr. Wood has stated he would be satisfied, and his statement is borne out by the fact that he Invited the Carolina Light & Power Co. to come to Wil mington. Had they come, obviously the idea of a municipal light plant would have been eliminated. As to the merits claimed for municioal lighting, no competent engineer will try to demonstrate that a small nlant will generate power as cheaply as a large modern plant. It such a plant were Dunt ana undertook to do light ing for private customers, the busi ness could only be obtained by com peting witn tne Tiae water Power Co. At once a fight would be precipi tated which would bring about similar fonaitions to tnose existing before t. formation of the. Consolidated Rail ways Light & Power Co. Even if the municipal plant was successful in eet ting business, it could not possibly be successful in making a profit; and even granted that it could make profit, the extensions necessary in or der to get new business would always require the expenditure of more mon ey than the profits amounted to. This is not a theory; it was actually the experience ot tne consolidated Rail ways Light & Power Co. where the company, though operating profitably, was run deeper into debt month bv month and year by year without be ing in position to pay dividends. It would never have been possible to pay dividends had the Tide Water Power Co. not been formed with an authorized bond isfeue of two million dollars. After the credit of the com pany was established these bonds were sold from time to time in the North for the purpose of providing tor tne .necessary extensions at the rate of about $100,000 a year. At the present time the Tide Water Power Co.. has about $1,500,000 of bonds au thorizd, and as fast as they are sold, will bring capital from other sections to be invested in the upbuilding of Wilmington. If this credit should be destroyed either temporarily or per manently oy a municipal plant, the investment or tnis amount of capital in wiimmgion, wnicn - wouia De a great factor in the city s future devel opment, would be lost. . . Other devel opments wnich have been planned in the country around Wilmington, and which are even more Important than the development of the Tide Water fower Company, and which are de pendent upon the success of the Tide Water Power Co., would be crippled or abandoned if the Tide Water Pow er Co. ceased to be a successful cor poration. - - . The municipal plant at Fayetteville has been held before the .community as an example of what can be accom plished here. It is well to point out that the plant in Fayetteville was op erated -without competition as to fur nishing electric light and power . to consumers. " In order to be in a posi tion to place before you the' facts we have had an examination made of the municipal plant at Fayetteville by Mr. Raymond Hunt,' who on two pre vious occasions, ; ; has examined the plant and' all of the surrounding con ditions, including the statements of the company for parties interested in Fayetteirille. I submit herewith Mr Hunt's report, which gives all details" and which brings .out some startling facts. I wish especially to call your attention to the following: 1. The gross receipts of the plant fo? tbre'year ended July 1, 1913, .wer? MR. $28,677.14, including a -check for $5, 447.50 paid by the cityto the munici pal lighting plant for fehts furnished to the cftjtand theste lights were fur nlshed JuOhe munirtpai plant to the city at a cost of $665 more than the cost would have been at the rates which thftlTide Water Power Co. fur nishes similar lights to the city of Wilmington. . 7 , a 2. The ai'sbursements for the year were $14,070.83, as shown by the com pany's statement. Included in these disbursements is the item of $7,050.55 for electric power, which was pur chased of the Fayetteville Traction Co at 1 cent per kw. This rate is less than half the proper rate which should have been paid for power, and it resulted in ruining the Traction Company which was sold out at auc tion day before yesterday. In esti mating therefore the results of the Fayetteville proposition, you should include both companies the one fur nishing the power, which was sold out at. auction, . and the ..other distributing the powder, which was supposed to have matfe a profit of about $14,000. Further careful investigation, how ever, shows that the statement of cost did not Include theafolowing impor tant items, which 'snould have been charged : Loss .inaxes .on $5&X35.67; .$1,540.00 Loss in . license taxjl-4th of the amount paid by the Tide Water Power Co., to the c.reyofWilmfirgton). . 975.00 Loss in"tax; 6n poles (750 poles at 20c) 150.00 Interest' on" "cosflDf plant ($56,735) at-&pr cent 2,836.78 Depreciation , on plant as per Commission' report 2,00000 Excess paid by tie . city to - itself for lights ... ... 665.00 Amount to be deducted from earnings claimed n ,..$8,166.7 For purposes of comparison there should also be deducted $10,575.82 (for power at 2 l-2c per kilowat in stead of at lr a- kilowat) because in future they will have to pay 2 l-2c per kilowat for power. if they buy it from the Carolina Light & Power Co. This deduction would leave a net loss to the city of Fayetteville for a year's operation of $4,136.17. There are other items mentioned in the report which will show you it is prooaoie that the loss is even great er tnan tnis. It is particularly impor tant also to note that the city of Fay etteville has got to rebuild its plant at a cost of $35,000. and at the pres ent time it is a problem -w know how the money can be raised. From Mr. Hunt's report we note that the prices charged by the city of Fayetteville to its citizens are higher than those charged-by the Tide Water Power Co. in Wilmington, and the service Is not near so satisfactory. Four large in dustries, have, closed down in the past year, among . which are the bucket factory and Che silk mill. Labor is paid $1 and $1.25 ner day: whereas labor in Wilmington receives $1.50 or more. "The street" cars in Fayette ville are the joke "of - the town, and it has. been five.montfrs since a street car has been operated in that city, If fayetteville puts in the new steam plant contemplated, the interest and depredation, on that additional invest ment will add morerthan $2,000 a year to the annual loss. It seems pretty clear, therefore, from these actual fig ures, that It would -not be wise to fol low in the path blazed out by the mu nicipal plant of Fayetteville. In regard to the firm of the J. B McCrary Company from Atlanta, who have made a proposition to do engi neering, construction and" financing of a municipal plant tor Wilmington. would say that within the past few montns 1 nave , had some correspon dence with this firm and "have from them a statement of the work which they have done and which they are competent to do. From their own statement, which I have with me, they have constructed successfully a large number of small plants in the smaller towns- or lieorgia and Alabama. My impression is J that", they have been fairly successful in this class of work. They do not claim that they have built plants in any large towns or cityihor do they claim that they have puiltjplants which have competed successfully with large modern light ing corporations. For instance, they live in Atlanta, but are not doing the lighting of Atlanta; m fact, their field seems: to be. in small towns which are not particularly attractive to the aver age public service corporation of large resources, it is not conceivable to me that they would be willing to,, or could successfully finance a plant suitame to do private iigntine in Wll- mmgton in the face of a nent for busi ness. First, because the : McCrarv vxunpany wrote to me with a view to M . . ..... - getting our firm to take some of their oonds in , order to enable them -to nnance corporations in the eonst.nio.- tion of which they are already inter ested. Second, Because no bankers would join them in initiating a long drawn out-; fieht that eventuallv the, city would directly or indirectly have to carrv this - financial . burden Yhirfner the period of competition for business. As to their proposition for- makine a. snrvey and giving an opinion on the situation here for the sum of . $750, it gff s to me that it: would be paying $750 tor what, you and they,-already Know.: This, is a case where he who runs mftV TAnH It rannirao tirlngijln business judgmental.. :j HUG . REPORT ON THE FAYETTEVILLE MUNICIPAL PLANT. (By Raymond Hunt.) November 19th, 1913. The following tabulations are taken from the printed statements of the Commission for the year 1913:- . ELECTRIC Receipts! , . Collections Private Consumers . . . Merchandise Sold City -Subscription for Lights Total income Disbursements: inc naescent Lamps ouppnes Insurance . . . Electric power Freight and Drayage Salaries, Wages and Extra Labor Repairs and Duplicate Parts Street Lamps and Repairs Miscellaneous . 50 Per Cent of Office Expense Oil and W:ste Total Disbursements .... . i PROPER DEDUCTIONS FROM NET, CITY OF Loss in Taxes (State, County and City) $2.68 on $56,735.67 . . Loss License Tax (privilege) at l-4th the rate paid by Tide Water Power Co ... ; ... Loss in Taxes on Poles (in 1913, 750 poles 20c.) .. .. .. .. ." Interest on cost of plant 5 per cent on $56,735.67' . . . . .. . . ,. Depreciation on plant as per Commission's report, 1911, etc .... Fayetteville pays itself higher rates for street - lighting than tho T. W. P. Co. icharges Wilmington (1911 and 1912 BMmati . 1913 actual figures) Deductions ifrom Earnings By reason of contract with Fayetteville Traction Co., by which cur. rent has been purchased et lc. per kw. hr which contract has put the Fayetteville Traction Co. in the hands of Receivers, - and which has made it possible for the City of Fayettfville to make the above showing. At the 2 l-2c rate, chargeby the Southern Power Company to the cities of High Point, Greens boro, etc., which is the same rate that the Carolina L. fc P. Co. have quoted the City of Fayet teville, the incresed expense woul d have been: 705055 k. w.hrs. x 1 l-2c. (The Total deductions on the Basis of Wilmington.. .. .. .. .. EXTENSION AND ENLARGEMENT ACCOUNT. ! Wire and Hardware extending Street limits Electric Meters (Factory cost, freight not added) . " Transformers, for new work (Factory cost, freight not ' added) Total extensions Check to City of Fayetteville Earnings ... Proper deductions from Earnings Net Earnings .', ... On the basis of 2 l-2c. current cost, wouiu 'oe increased ... The Net Loss would have been The lighting, power, water and sew erage in Fayetteville are owned and operated by the city. These depart ments are all under one permanent Public Works Commission, and one superintendent with one force of men, runs all departments. The plants are operated very economically, if any thing too much so, for the best inter ests of the city. For instance, negro linemen are employed, and a lower rate of wages is paid all employes than is paid in Wilmington. The lighting plant was installed in 1902 and rebuilt in 1905. It is, however, out of date and inadequate to serve the 'city's needs. It consists of one Corliss 315 H. P. engine belted to one 200 K. W. generator. This runs non condensing as there is no water at the present site. There was also one 100 H. P. valve, non-condensing en gine at the electric plant; which was being moved about two-miles out in the country to the waterworks plant- The city is purchasing a small genera tor to belt to the engine to help carry the Winter peak lighting load. The city has an unusual contract with the Fayetteville Traction Com pany, a local concern, which has 'a small water power about 12 miles west of Fayetteville , and has a franchise to run street cars, etc. This contract specifies that the city is to pay 1 cent per kw. hr. for all current which it requires up to a maximum of 500 H. P. or 224 Kilowatts; and If the water power fails to deliver current the city runs its steam plant to supply the current and charges the Traction com pany with the cost of coal and labor. This contract has been in operation about five years and still has five years to run, with the privilege of renewal, at the option of the city, for another ten years. This contract ; has proven very iidyantagepus to'.th' cjtyduring! this first five-year peri ad, haa 3. MacRAE Report LIGHT PLANT. ....... ... . To July 1st, 1913. . ... ...$23,211.94 . . , .. 17.70 5,447.50 .....$ 28 677 14 To July 1st, ,1913. $ 70.30 ... -; . .""; 1.. ."."..." .""(lc ) . .. ... ... .. ... 1,324.19 1 y nn 400.00 3,219.98 329.25 398.03 ro'ni 1 306.62 .$14,070.83 AS SHOWN IN REPORT OF THE FAYETTEVILLE. 1913. 1,540.00 ;97o.OO 150.00 2 836 78 9'nnn'nn .uuu.vu 665.00 .$8,166.78 difference) . . . ....... .... 10 5782' ' Q- .$18,742.68 r . .i -.- 449.54 $ 2 097 94 (net) 1250847 . . . . $14,606 43 8 16fi 78 ' " - g1DM ' ... ' mm ""... - instead of lc the expenses - ... ... 10 57 82 ' $ 4 126 17 " 1,XOU.X4 abled the commission to make fine re ports. The Traction company, how ever, has not made enough from the contract to keep its plant in repair, so that the city has had to advance more money for wages and coal used by the Traction company than the total cost of the current as supplied by the con tract; so that the Traction company instead of receiving anything from the city for all the current which it has supplied front' its water power, has only debts to the city to show for the current supplied for its power." " Tne Traction company, : therefore, which represents about. $115,000.00 ; of investment, is nrar.tiallv ni4i,u.n .ifen3!?:a' th,r,ou.gh one. receivershipi and wiU be sold December 15th-at an- Z. ''ai.uuu company is in bad fV Ahe dam is leaking and in bad cZXZ J, L"B wer wneei foundation has shifted so at the step-bearing is ex ?ftel ? ,8tv war at any time; and of bk l?,e 1UY K- v A- transformers at, the Fayetteville sub-station- Js burned out. .The only, other source of revenue of the Tra was the operation of street cars and rivu "ever paid. v. (-- The physical condition Of" the, Tron tion company's plant, and the2 fact that the city now, recmirfla whra,'Ai vT Jrpeclfled jn the M - ' ma6C5 necessary lor ' the a,,k " Ijue water power r,,uiT "l uu.7n.a'' present, the city iTSSK VfeS2?H? t.off its street "uuiu not pe aoie to sup- the ffSPi1fII8S,Wl .ta Pperly bum denceS - the stores ; and , . resl- .- Tbe present steam slant of the city fttt6' ye nneconomicS so that the situation is so critical that the commission is afraid . to. take on any more load until minoii. J-'ri1 rV .u'' ',v . iu steam plants: in fact, there are onlv SO U t i2ifA use-ih i-'WoKtJ." Th1TJ: power tends to drlye away. Bxa&ih lj LJ1!. P?weu; Eiectrte on Fayetteville much so triat tne Gas company sell ing illuminating gas at $1.75 per thou sand (as compared with Wilmington's rate of $1.25 per thousand) has a good share of the lighting business. The commission, therefore, is called Upon to solve this situation. There are three solutions discussed: (l) Purchase the current from the Caro lina Light & Power Company, who already have a sub-station in Fayette ville. and supply bower to three or four cotton mills.' - This company of fers to -supply current to the city at 2 1-2 cents per K. W. Hr., which is 2 1-2 times .e present cost; or, - (2) Increase the size of their pres ent team plant, which would be very unwise as tnere is no condensing wa- . ter available, noor facilities for hanri I c, . 1 vmw uut,.j usJ InnmlMl nlont .Aemmnt K. V....-1. J.. present site; or, (3) Purchase or lease an entirely new site and scrap the old steam Plan. and build a new power house. me lauer Boiuuon nas Deen ceciaea on as the best thing to do; and a loca tion near the railroad track about a mile from the present plant has about been decided on. This means a large expenditure of new money; and as there has been no depreciation fund or other money set aside from the earnings to provide for this contin gency, the commission will have to borrow money to build the plant. It on long-term notes, which it is hoped can be done at 5 per cent., or if the ' machinery Is purchased on long-term ' notes bearing - 5 per cent., that the city WOuld pay proportionately higher prices. ; 'It js the intention to scrap the' en tire present plant except the 315 H. P. engine and the 200 K. W. generator, and install a 500 K. W. steam turbine plant, equipped . with condenser and water tube toilers. The old 200 K. W. unit would then be used in case of breakdowns of the new equipment It is estimated by I the commission that $35,000 will be required to build the new4 plant. This will mean in creased interest charges, and increas ed costs of operation over the present contract price of 1 cent per K. W. Hr. The prices now charged by the city for light . and power are higher than a A 1 J 3 TTTJ1 i- ,i "wseu in yv limmgton, ana tne service is not near as satisfactory and reiiaoie. . . ; From the tabulated figures for the last three years, the year ending July 31St. 1913. made . the : best shnwine. 1326 75 The apparent net earnings were $14, 32L65 606.43 ; after making the proper deduc- j i-iuiio iui: iubs iu laiBa, mieresi, aepre- ! elation and overcharge for street light- amounting to $8,166.78, the real net earnings were . $6,439.65. This ow,mffi was made bv reason of tne 1 ' cent -per K; W.. contract I -with the Traction -company. On the 6 439 fi1? oaia OI cents current (wnich is Il!rthe rate charged by the Southern Pow- er Company and the Carolina Light & Power Company; to municipalities). the citv of Fayetteville would have Paid $10,575.82 more for electric cur- iron- o nrmiM V. 1 ..i A io tm last - year's operation of the electric plant. If Fayetteville puts in a new steam plant and does not purchase current from the Carolina Light & Power Com pany, the city will have interest and depreciation on $35,000 more invest ment. It 'will -also cost more than 1 cent per K. W. Hr. to generate the surplus current which is not included under the 1 cent per K. W. Hr con tract. - " Furthermore,- as both the electric department and the water and sewer age department are operated by the same superintendent, same force of laborers, same office expense, etc.. it is a matter of bookkeeping based part ly on estimates, as to the cost of each department. . , It y ia, therefore, possible that some of the nrnfitH nf the electric department should have gone to the water and sewerage de partment, as the latter department has made a comparatively poor show ing, as the following statement will show: v ' .s '."-'. - Water and Sewerage Account for the Year Ended July 31st, 1913: Receipts .. . . . . . ,. .$14,932.91 Disbursements 7,827.71 Apparent; Net Earnings for Xear ' ? 7.105.20 ;Proper Deductiona-from Above: Loss in taxes at ? ..- 2.68 on $130,000 $: 3,484.00 Depreciation ; at ' ' a two i ' per cent.; " ' On $130,000 . ; ' ; 9 Rrth ft A Bond Interest-at 'i; ;" nve per-rcent; r - - on $130,000 . - -ftjcnnnn .- ,- - w - - ' - .. -- vW V W - Total Deductions 4 - $12,584.00 Actual Loss ' on t W.1 & S. Accounts . , . . - - . - f . - . . . , T I O - ' ' ' VOnilMninfir.'tno ' StatO ante tho n TO CTi I wO Denartmentn -i. Actual Earnines .- Electrif Department, 1913 . . . . -. . $ 6,439.65 Actual Loss Water ' nnd Se wr e r a g Department 1913 . . . . . ..... ' . 6,478.80 Actual Net Earnf n era " Bo t , h a: Departments; Thereforft' ctt jiio" ! ii?ni $1,000 net profit- on , last year's opera- tlOnK.f:,":V...'V,-;j:y f , - j " -cuscouracd ir-bo faaverttsemcnt.) ..-V .--.vt:- (-.-':.
Wilmington Morning Star (Wilmington, N.C.)
Standardized title groups preceding, succeeding, and alternate titles together.
Dec. 18, 1913, edition 1
2
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