Show TO THE cl CITIZENS y T ILZ FA S OF PRICE the th article appearing in last weeks pape in reference to the possible sale zale of the price municipal plant contains many statements which are nob not in accord with facts undoubtedly it was not the intention of the signers of said article to mis lead the citizens of price Ilo however wever if an investigation had been rade made of ill the feets in connection with the oiiver operation stion of our city plant many of the statements in that article articia would not have been made 4 the city recorder keeps an occur ate statement of all expend expenditures es I 1 in in connection with the said plant alao all receipts from its operation these figures ure are on file in the re corders eor ders office and are subject to ex bv any of the citizens of price the city council before determining whether it was advisable to submit he the question of sale of the plant to the he citizens hid h id an audit ande M do covering the entire on the plant and the cost of opt rating same since its in the fall fill of 1910 after going over this audit and finding that the plant wai was being operated at considerable lossi and realizing that a confide able amount of money would hav to be both for and for extensions which mone mones either would have to bf be i abed imbed by the sile of bonds bondi oi ba tax alion it ws de cidred that the ques lion tion of bile 1 should be d to the catiz ns the auditors report ri berred to has been mai lible for elimination examination by my any of the citizens citizen 4 at any time during the list two months and a half we herewith the ini potwin flauter taken horn fion the city booke ind slown in the auditori ind aud itoi s rf re port up to february 1910 the city had spent in construction work on the electric electrio pl int ad distribution system 85 depreciation for the five and one third years during which the plant has been operated amounts to 78 leaving the present book value of the plant at 07 As we all know the plant has been opera operated 4 d at a loss during this period consequently we hivo hive had to pay 1 out of or the taxes each year qi monea mone to make up this loss the total of w is raised by the sale of bonds on the electric electrio plant pant ahe amount that has been paid by fixation towards construction and operation of or the clarit is 37 the loss in operating the pl pant tit during thia this period amounts to this i is at t the he rate of 26 per year or 50 per month or 10 per daa aa in figuring this tills sum the auditors credited against opet operation aaion street lighting at the reg rates charged elsewhere in the state by private companies and the city pumping at the same rates II 11 we had abU abutted Tied that we were cecur ing street lighting and pumping for nothing our total los instead of be ing 50 pir month would be in cread by some 00 a month or a i total of 50 a month or ap proximately 19 per day this also docs does not take into consideration the fact that if a private company had owned tho the pi int that the city would have received taxes from f roni said soura which would havo have gone a long ways towards plying for the street lighting the actual earnings by ye years irs from the city plant have been as I 1 follows 1011 2 1913 10 1914 1016 1015 total lone rec ivd from 4 11 07 23 37 vain willi of fit ill tit trept bo 80 2 19 1 66 ce value of pump for city water works 11 1017 11 1037 13 q cotal otal i vo ia 7 50 1 I 87 ba so 0 71 42 e I 1 lie op r 4 have if liatti on as ai follows 4 loll 1011 ioli 1912 lots 1911 1914 ml 1 1915 1 total olm prating etting ng ex pons 9 OTO 37 69 si anti inti rest and depre depreciation clation 3 22 ga GO 66 1 I otah 80 89 U 6 80 62 8 91 48 91 03 63 22 72 note the 1914 operating ex benses were low due to the fact that during th thit it period the propel t was leased the earnings wre corre spon dinell low during the same 3 arar aar for the same reason the 1915 operating expenses aie ate high doe to the f fact let that was spent for boiler and similar simil cir rep repairs tirs during luring the year similar expenditures will have to be ill nude I 1 de each year hereafter Bl member embers of the city council went over these figures and reached the conclusion that we were not warranted in recommending that the city continue to operate the plant when outside birties offered to buy the plant ilita il present value and furnish to the citizens of price rice it st a less neure thin the present cost we feel that the citizens of price should look at this matter as a business apropo proposition and not allo alloa political influences to affect their decision in this matter if the citizens are willing to be taxed 10 a diy ay to make up the losses on the operation 0 of f the plant the cit council will be only too willing to follow their instructions and continue to operate I 1 the plant it the above loss on the other hand we believe that it d s ad r s visible for the citizens to save this money toney and to dispose of the plant at a time when is an opportunity to receive a good price for same in the article referred to the statement is nude mido shit the properly property if properly property opt op rated prated can a day interest on four times its present value with total eat aings of only 9 50 I 1 per ear plus city service amounting to per 3 ear car and with operating ing expenses amounting to better than 10 per year and depreciation and interest to more than per year how can the saving of 0 per month referred to n the statement pay day interest on four times the present alue value v of the property 3 again in reference ference to franchises under the state laws no exclusive franchise can be granted consequently the city of price can engage in tiia electric light business at any time in the future that it so des desires ire or grant franchise to a competing company at any time the signers of the statement referred to also lost sight of the fact that if the property pra pr perty hid been leased at per month the city would w uld still have had to pay vay interest on the bonds bondi and would have had to take concluded on following pao page TO THE CITIZENS OF PRICE i concluded from preceding page care of the sinking fund provisions of the bonds also deprea depreciation bation on the plant in reference to the question of tho the bid of covering operation of the plant the party making this bid said that he would not furnish a bond P and vid the city council did not think it ad to turn over to him some worth of city property with no assurance thac that the city would be protected in case easo of pool poof handling of said property we are of the thi opinion that thy the question of an electric elect elec lic tile railroad 4 to lo 10 emery county has no connection with the sale of the electric elec fric c plant we stand just as good chances of securing such a roid road whether we sell the plant or not under the state law if the iti bens vote to sell soil their plant we are required to advertise for sealed b bida consequently we have not felt it ad disable to receive a definite offer for the property at this time knowing that we cannot sell the property for less than the outstanding bondi i noi not for less than the appi appraised alsed value we have appointed three of the good business men of thia this city to appraise the property we have been informed by the utah power and light company that they wo wod id make a lid for the property pio perly perty if th tho citizens d seide wide to sell they have also ns as ajr d us that the for electric service would woid be more favorable and lower charged the citizens of price they advise us that they will make extensions and install transformers for electric and similar service without requiring the customer to pay for said extensions they also ambure u us that they require no meter deposits from the property owners and smaller depo deposits siLs than now asked from non property owners they state that the reason they can do this la Is the fact that they are generating current in badro eleoterio plants in large quantities and consequently will bo able to operate the plant cheaper than the city has been operating we understand that will indin maintain tain a good office here and will handle all of the emery county business as well as the local business busine 9 from this office with a result tl alit it they will speed spend considerable suns of money in this arty each year burth 11 armore they will vill bring in a largo large line and with the 0 city 1 aty lines so that at any time that factories fact orits or other large power users desire to locate at price electric electrio service will be available at the same cheap power rates that exists in other parts of utah again they have in their employ a L arge rge corps of specialists well informed in reference to all acts of ele elosorio elos arlo trio service who will be available for helping the cili of brict N in refe reference ence to the possible t is of f electricity without coat cost to us again if a private company owns the electric plant we will be able ble to collect a considerable sum of money each year in taxes from said plant consequently we are 0 the opinion that it will be advisable to sell the property andee ami we can assize the citizens of price that the city acm 21 il will make the best possible terras at uhe ithe time bids are opened and b edde agreeing to sell the plant youra yours for the tle best interest of price A AL W HORSLEY major ala j or |