USA > Massachusetts > Middlesex County > Wakefield > Town annual report of the officers of Wakefield Massachusetts : including the vital statistics for the year 1921 > Part 9
Note: The text from this book was generated using artificial intelligence so there may be some errors. The full pages can be found on Archive.org (link on the Part 1 page).
Part 1 | Part 2 | Part 3 | Part 4 | Part 5 | Part 6 | Part 7 | Part 8 | Part 9 | Part 10 | Part 11 | Part 12 | Part 13 | Part 14 | Part 15
24.47
Reconnection of services .
8.00
Increase in inventory of Station Tools.
52.08
Increase in inventory of Dist. Tools, elect.
163.21
Increase in inventory of stock.
666.98
Total.
$50,199.25
Deficit of December 31, 1921
32,089.09
$82,288.34
BALANCE SHEET
Liabilities
Appropriations for Construction.
$51,632.86
Bonds outstanding ..
50,500.00
Accounts payable, construction.
2,061.04
Accounts payable, operation
16,103.87
Deposits.
3,704.78
Interest accrued.
367.92
Total. .
$124,370.47
Loans Repayment
207,800.00
Total
$332,170.47
Assets
Buildings, gas.
$17,894.33 .
Machinery and Equipment.
55,093.15
Mains.
53,659.43
Services.
6,170.48
Gas Meters. .
18,182.10
Buildings, electric.
5,654.26
Electric plant.
8,026.35
Overhead lines
61,850.26
Transformers .
13,232.58
Electric Meters
16,972.00
Street lights
2,175.02
131
REPORT OF MUNICIPAL LIGHT BOARD
Deposit fund ..
3,704.78
Operation Fund.
1.11
Construction Fund .
728.64
Accounts receivable, gas.
4,879.71
Accounts receivable, electric.
6,657.08
Accounts receivable, sundry .
4,489.13
Inventory, gas coal.
4,000.00
Inventory, enrichers.
840.00
Inventory, purifying materials
250.00
Inventory, works tools.
752.76
Inventory, oil, waste and packing
36.82
Inventory, distribution tools, gas.
470.63
Inventory, garage equipment.
3,146.00
Inventory, office equipment.
2,623.73
Inventory, station tools.
204.62
Inventory, distribution tools, electric.
330.93
Inventory, coke
50.00
Inventory, tar.
660.00
Inventory, jobbing, gas.
1,397.29
Inventory, jobbing, electric.
620.93
Inventory, stock.
4,793.31
Unexpired insurance
533.95
Total.
$300,081.38
Deficit of December 31, 1921
32,089.09
$332,170.47
The foregoing statement is in the form prescribed by the Department of Public Utilities. It is taken directly from the general ledger of the Department and is simple and straightforward. Nevertheless, it would seem advisable to make some explanations concerning it and to point out the more important facts revealed by it.
In each case, the operating account shows the operating income on the credit side and the operating expense on the debit side. The operating balance, or the difference between the operating income and the operating expense, is car- ried to the profit and loss account. The latter also shows the non-operating income, the non-operating expense and the net result of the year's business. The balance sheet shows the condition of the Department after the year's busi- ness.
The incomes and expenses referred to are exactly what their names imply. They are not the receipts and expenditures and should not be confused with them.
GAS OPERATING ACCOUNT
. The gas operating income amounted to $103,678.76 and the expense amounted to $88,301.24, showing an operating profit of $15,377.52. This is carried to the
I32.
TOWN OF WAKEFIELD
credit side of profit and loss where, on the debit side, will be found the interest, depreciation, loan repayment and other charges. The net profit will be referred to later. The various items making up the total income and expense are quite definitely named and do not seem to require further comment.
ELECTRIC OPERATING ACCOUNT
The electric operating income amounted to $91,531.15 and the expense amoun- ted to $63,626.02, showing an operating profit of $27,905.13. This is also carried to the credit side of profit and loss and the net profit will be referred to later. The various items making up the totals are quite definitely named and do not seem to require much comment. I would, however, call your attention to the expense item, Repairs, Lines and Conduits, which amounts to $9,041.58. Al- though we did a great deal of work during the year toward putting the lines into first class condition, this item is abnormally high because of the storm of Novem- ber 27th, 28th and 29th. As you well know, that storm broke down our lines, electric services, street lights and fire alarm wires all over the Town. Up to December 31st, we had spent $4,034.75, in repairing the damage and this amount is included in the $9.041,58 referred to. The repairs made were of a temporary nature, in many cases, and it will be well into the summer before the system is in as good a condition as it was before the storm. The additional expense can not be estimated accurately but it will probably amount to something like $5,000.00. The loss of income due to the storm was considerable, amounting to something like $3,000.00.
PROFIT AND LOSS ACCOUNT
As I have said, the profit and loss account shows the balances of the operat- ing accounts, the non-operating income and expense and the net result of the year's business. The balances of the operating accounts will both be found on the credit or profit side. The more important non-operating items are as fol- lows:
APPROPRIATION FOR MAINTENANCE
On the credit side of profit and loss, there is an item of $4,000.00 which is part of the appropriation for the maintenance of the plant made by the Town at the regular Town Meeting of March, 1921. The total appropriation amounted to $18,500.00. This was more than a fair price for the street lights and, if the whole of it had been credited to income from street lights, it would have made the electric business appear better than it really was. Likewise, if any of it had been credited to the gas income, it would have made the gas business appear better than it was. Therefore, I credited $14,500 00 to income from street lights and $4,000.00 to profit and loss.
INVENTORY
On the credit side of profit and loss, there are three items, namely, $52.08, $163.21 and $666.98 which are the results of increases in inventory values be-
133
REPORT OF MUNICIPAL LIGHT BOARD
tween December 31st, 1920 and December 31st, 1921. They are not due to increases in the value at which the inventories were priced but to a more care- ful and thorough taking of the inventories.
INTEREST
On the credit side of profit and loss, there is an item of $21.75. This is the difference between $64.48 which was the interest received from guarantee de- posits and $42.73 which we paid out as interest to depositors.
On the debit side of profit and loss, there is an item of $2,697.92. This rep- resents the interest charges on all of the bonds of the Department and, in so far as they became due, they were paid.
DEPRECIATION
On the debit side of profit and loss, there are seven items which represent the allowances for depreciation which were made during the year. The total of these is $6,967.00 and this is 3% of the cost of the plant, as shown by the books December 31st, 1920. According to law and to the rulings of the Department of Public Utilities, these amounts were credited to the plant accounts indicated, thereby reducing the book values of those accounts, and debited to profit and loss as a loss or expense. As of the same period, that is during 1921, the total amount was transferred from the earnings or from the operation fund to the depreciation fund in order to keep the investment intact. The fundamental use of the depreciation fund is to supply money for renewing the plant so as to restore the value which was removed by writing off the depreciation.
1
LOANS REPAYMENT
On the debit side of profit and loss, there is an item of $10,500.00 entitled loans repayment. It represents the bonds that were paid during the year and consists of $9,000.00 ,which was part of the issue of October 1st, 1894 and $1,500.00 which was part of the issue of December 1st, 1920. These items were credited to a loans repayment account (the balance of which is shown as a liability) and debited to profit and loss, by order of the Department of Public Utilities. Of course they were not losses nor is the balance of the loans repayment account a liability.
ACCOUNTS PAYABLE
On the debit side of profit and loss, there are three items which were payable December 31st, 1920 but which were overlooked. They were not charged to the business of 1920 as they should have been so they have to be charged to the business of 1921. They are $5.74 for electric jobbing, $40.00 for stock and $3,640.36 for gas coal. They are charged directly to profit and loss in- stead of to the accounts indicated so as not to affect those accounts for the year 1921.
134
TOWN OF WAKEFIELD
PROFIT AND LOSS BALANCES
The net result of the year's business is shown by the difference between the profit and loss balance at the beginning of the year and the same item at the end of the year. The profit and loss balance at the beginning of the year was a de- ficit of $57.543.85. The same item at the end of the year was a deficit of $32,089.09 That is, the deficit was reduced by $25,454.76 or, in other words, there was a net profit of $25,454.76. This will be referred to later.
BALANCE SHEET
The balance sheet shows the condition of the Department after the year's business. It will be seen that the total liabilities, so-called. amounted to $332,170.47, that the total assets amounted to $300,081.38 and that the difference between these was a deficit. amounting to $32,089.09, which agrees with the last profit and loss balance.
RESULT OF YEAR'S BUSINESS
As I have pointed out, in connection with the profit and loss account, the net result of the year's business was a profit of $25.454.76; but it may reasonably be stated that some of the items, of which that figure is composed, are unusual or abnormal and the following comments would seem to be in order.
According to the books, the profit was. $25.454.76
If it had not been for the storm, this would have been greater by about. 7,034.75
If the accounts payable of 1920 had not been overlooked. it would have been greater by 3.686.10
If bonds had not been prepared, it would have been greater by. 150.00
Or a total of.
$36.325.61
If the Town had appropriated only a fair price for street lights, the profit would have been less by.
4,000.00
If bonds had not been issued. it would have been less by.
530.00
If certain inventory items had been credited to 1920, it would have been less by 882.27
Making a total of
$5,412.27
And leaving a modified profit of. $30,913.34
Referring again to the profit of $25,454.76 as shown by the books, I would call your attention to the fact that this profit was shown after all charges were made for accounts payable, interest, depreciation and loans repayment. I would also call your attention to the fact that the loans repayment item of $10,500.00 was not actually an expense. It was, in reality, a profit which was used to reduce the Town's indebtedness on account of the Department and,
135
REPORT OF MUNICIPAL LIGHT BOARD
as such, it represents the purchase of a part of the plant by the Department, from the bankers and for the Town.
As to what became of the profit, this may be seen by comparing the balance sheets of December 31st, 1920 and December 31st, 1921, as follows:
Assets
1920
1921
Profit
Loss
Plant.
$210,139.26
$258,909.96
$48,770.70
Inventory
17,292.83
20,710.97
3,418.14
Cash ..
28,164.00
4,434.53
$23,729.47
Accts. Rec
16,372.51
16,025.92
346.59
Liabilities
Appropriation. .
$71,632.86
$51,632.86
$20,000.00
Bonds.
36,000.00
50,500.00
$14,500.00
Accts. Pay.
21,055.59
18,164.91
2,890.68
Deposits .
. ..
3,164.00
3,704.78
540.78
Accrued Interest
360.00
367.92
7.92
Loans paid
197,300.00
207,800.00
10,500.00
$75,079.52
$49,624.76
49,624.76
$25,454.76
OPERATING COST OF GAS IN HOLDER
The operating cost of the gas in the holder amounted to $70,186.45 made up as follows :. 4
$33,184.78 for coal
10,885.72 for oil
266.17 for purifying materials.
5.12 for water
22,645.49 for wages at works 413.37 for works tools etc.
160.46 for oil, waste and packing
743.38 for repairs, structures and holders
1,881.96 for repairs, machinery and equipment
$70,186.45 total
The gas manufactured during the year amounted to 64,011,000 cubic feet, so the average operating cost of the gas in the holder was $1.09 per thousand cubic feet.
I36
TOWN OF WAKEFIELD
TOTAL COST OF GAS TO CONSUMER
The total cost of the gas delivered to the consumer amounted to $98,753.11 made up as follows:
$70,186.45 manufacturing cost
9,686.21 distribution cost
8,428.58 general expense
$88,301.24 total operating cost
1,400.67 interest
3,600.80 depreciation
5,451.20 debt retirement
$98,753.11 total
. The gas delivered to the consumers amounted to 49,129,000 cubic feet so the average total cost of the gas delivered to the consumers was $2.01 per thousand cubic feet.
PRICE OF GAS
At the beginning of the year, the price of gas was $2.40 per thousand cubic feet, with a discount of 20 cents per thousand for prompt payment, making the net price $2.20 per thousand. On April 1st, the price was reduced to $2.20 per thousand cubic feet, with a discount of 25 cents per thousand for prompt payment, making the net price $1.95 per thousand. Later in the year, the price could have been still further reduced except for the fact that money was re- quired to pay the cost of taking on new consumers and no other way of obtain- ing that money was available.
OPERATING COST OF ELECTRICITY ON BOARD
The operating cost of the electricity on the switchboard amounted to $39, 513.28 made up as follows:
$5.13 for water
3,054.65 for wages at station 55.20 for station tools etc.
176.51 for repairs of buildings 66.24 for repairs of electric plant
36,155. 55 for current bought
$39,513.28 total
. The electricity purchased and delivered to the board amounted to 1,104,508 kilowatt-hours, so the operating cost of the electricity on the board was 3.577 cents per kilowatt-hour.
137
REPORT OF MUNICIPAL LIGHT BOARD
TOTAL COST OF ELECTRICITY TO CONSUMER
The total cost of the electricity delivered to the consumer amounted to $73,339.07 made up as follows:
$39,513.28 purchasing and station costs 15,058.26 distribution cost
9,054.48 general expenses
$63,626.02 total operating cost
1,297.25 interest
3,367. 00 depreciation
5,048.80 debt retirement
$73,339.07 total
The electricity delivered to the consumers amounted to 882,646 kilowatt- hours, so the total cost of the electricity delivered to the consumers was 8.32 cents per kilowatt-hour.
1 PRICE OF ELECTRICITY
Throughout the year, the price of electricity for lighting was 15 cents per kilowatt-hour, with a discount of 2 cents for prompt payment, making the net price 13 cents per kilowatt-hour.
At the beginning of the year, the price of electricity for power was in accordance with the following.
POWER SCHEDULE
The monthly charges consisted of two amounts.
First, a service charge of $1.00 per month per horsepower of connected load.
Second, a current charge of
8 cents per K. W. Hr. for the first 100 K. W. Hrs.
6.5 cents per K. W. Hr. for the next 300 K. W. Hrs.
5.5 cents per K. W. Hr. for the next 1,000 K. W. Hrs.
4.5 cents per K. W. Hr. for the next 3,000 K. W. Hrs.
3.5 cents per K. W. Hr. for the next 10,000 K. W. Hrs.
2.5 cents per K. W. Hr. for all additional K. W. Hrs.
The minimum charge was the service charge but, in no case, less than $1.00.
A discount of 10% was allowed on bills, except minimum bills, if payment was received at the office of the Department, within fifteen days of date of bill.
On May 1st, the service charge was reduced to 50 cents per month per horse- power of connected load.
138
TOWN OF WAKEFIELD
PLANT
The word plant, when used in connection with such a business, includes all of the fixed assets, that is, the land, buildings, machinery and equipment, mains, services, gas meters, lines, transformers, electric meters and street lights. That is, it includes both the plant proper, or the works, and the distributing systems. I will refer to the various parts of the plant under their respective titles.
COAL GAS BENCHES
The coal gas bench No. 3 is in very bad condition. It should be taken down and completely rebuilt. This will cost about $1,600.00.
GAS COMPRESSOR
The gas which is distributed by means of the high pressure system is com- pressed, for that purpose, to 15 or 20 pounds per square inch At present, it `is being compressed by Westinghouse air-brake compressors which are too small for the purpose and very uneconomical. They should be replaced by larger, more economical and automatic equipment. Such a replacement would cost about $3,500.00.
BOILER BLOW-OFF
The boiler blow-off is very badly designed and is about worn out. It should be replaced by a new one and the latter should be designed to reduce the velocity of discharge so as not to make a mess of everything in its vicinity. Such a blow- off could probably be installed for $500.00.
WATER-GAS SET
At the special Town Meeting of December 15th, 1920, it was voted to ap- propriate $25,000.00 for the installation of an additional water-gas set and to raise the money by a bond issue. There was no space available for an additional set in the water-gas house as it then existed, so the house had to be extended. A 4-foot set was purchased from the U. G. I. Contracting Co. of Philadelphia and the same was put into operation June 13th, since which time it has given every satisfaction. The total cost of this addition, to December 31st, was $24,271.36 leaving a balance of the appropriation amounting to $728.64. The floor of the extension to the house has not been completed and the lighting sys- tem has not been installed. These can probably be paid for out of the balance still on hand.
EXHAUSTER
Another exhauster, for passing the gas from the relief holder through the tar extractor and purifier boxes, is badly needed." The exhauster which was installed when the old water-gas set was installed has broken down several times during the year and put both of the water gas sets out of commission. An
I39
-
REPORT OF MUNICIPAL LIGHT BOARD
additional exhauster should have been installed when the new water-gas set was installed but the funds available were not sufficient for the purpose. A suitable exhauster and the necessary piping would cost $1,600.00 delivered and erected and I recommend that that amount be included in the appropria- tion for construction.
BLOWER
The blower, which was installed with the old water-gas set, is obsolete and should be replaced by a new one. The latter should be piped up so that it can be used in connection with the old set, or the new set or both. Such a replace- ment would cost about $1,600.00.
OIL TANK
In the manufacture of water-gas, we use gas oil for enriching the blue gas which is made in the generator. The present tank for storing the oil is 16'-0" in diameter by 11'-4" deep. It has, therefore, a capacity of 17,000 gallons of oil. We are using an average of 358 gallons and a maximum of 850 gallons per day and we are receiving the oil in tank cars of 8,000 and 10,000 gallons capacity. It is impossible therefore, to purchase the oil when the price is at- tractive unless, at the same time, the tank is low enough to take a tank car ship- ment. It is also difficult to time the purchases so that the car will arrive after we have capacity to take it and before we are too low for safety. It has hap- pened twice that the car we expected and needed did not arrive in time and we were obliged to purchase oil in tank wagon lots at a great advance in price. An additional tank should be installed and this would cost $1,500.00 delivered and erected.
COAL HOIST
A coal hoist, such as has been installed with the new water-gas set, should be installed for the old water-gas set. This would cost about $400.00. .
CATCH BASIN
The overflow from the water-gas sets consists of an emulsion of water, tar and oil. This emulsion is carried to a concrete tar well, located under the floor of the water-gas house, where most of the tar settles out and is recovered and sold. The overflow from the tar well passes through two other wells, located in the yard, and the overflow from these runs away in a ditch and finds its way to the Lake. This final overflow contains some tar and all of the oil that comes from the water-gas sets. It has saturated the ground on its way from the works to the Lake and is contaminating the water of the Lake. A catch basin should be installed to prevent this action in the future. Such a basin would cost about $1,500.00 delivered and installed.
1
MAINS
In many parts of the Town, the mains are too small to properly supply the consumers connected to them. During the year, we received 237 complaints
140
TOWN OF WAKEFIELD
because of lack of pressure and some of the complainants were very much dis- satisfied with the service. We did what we could to relieve the situation by blowing out services and cleaning and adjusting burners. We also helped mat- ters by installing some additional mains, as follows:
1,631 ft. of 6 in. L. P. main on North Ave.
1,475 ft. of 3 in. H. P. main on North Ave.
1,972 ft. of 4 in. L. P. main on Pleasant St. We also extended the mains to reach new consumers, as follows:
483 ft. of 2 in. main on Cyrus St.
240 ft. of 3 in. main on Bateman Court.
264 ft. of 2 in. main on Bateman Court.
465 ft. of 2 in. main on Bancroft Ave.
560 ft. of 2 in. main on Pershing Ave.
550 ft. of 3 in. main on Elm St. 564 ft. of 2 in. main on Elm St. 18 ft. of 3-4 in. main on Merriam St.
300 ft. of 2 in. main on Hanson St.
165 ft. of 2 in. main on Pleasant St., Greenwood.
153 ft. of 1 1-4 in. main on Montrose Ave.
745 ft. of 4 in. main on Prospect St.
These additions to and extensions of the mains cost $8,786.89.
During 1922, other additions and extensions will be required and I suggest the following for your careful consideration.
2,200 ft. of 6 in. main on Church St. from North Ave., to Main St.
800 ft. of 4 in. main on Salem St. from Main St. to Pleasant St.
2,400 ft. of 2 in. main on Salem St. from Read's Corner to Walton's.
3,600 ft. of 2 in. main on Lowell St. from Read's Corner to Vernon St.
4,000 ft. of 3 in. main on North Ave. from Works to Armory St.
1,800 ft. of 8 in. main on Main St. from Albion St. to Salem St.
1,800 ft. of 6 in. main on Main St. from Bennett St. to Charles St.
400 ft. of 4 in. main on Avon St. from North Ave., eastward.
1,000 ft. of 3 in. main on Prospect St. from Davies' to Howes'
I4I
REPORT OF MUNICIPAL LIGHT BOARD
500 ft. of 2 in. main on Renwick Road from Spring St., to Overlook Rd.
700 ft. of 2 in. main on Overlook Road from Renwick Road to Norwell Rd.
300 ft. of 4 in. main on Emerson St. from Auburn St., to Gould St.
150 ft. of 3 in. main on Gould St. from Byron St. to No. 77.
400 ft. of 3 in. main on Cedar St. from Gould St. to Auburn St.
All of these items would cost about $23,000.00 and it is possible that the Town will not wish to improve the mains to so great an extent in one year. I believe, however, that twice as much as was spent in 1921 could profitably be spent in 1922 or say $15,000.00.
SERVICES
Gas services are the branch lines which extend from the mains to the con- sumers' buildings and to the meters. In so far as a service is situated between the main and the property line, it belongs to the Department. From the property line to the building and to the meter, it belongs to the property owner. For that reason, we have been charging for the installation of services as fol- lows: first, a fixed charge of $5.00; second, a variable charge of 50 cents per foot of the distance from the property line to the inside of the cellar wall. The first charge is intended to cover the cost of supplying and installing the piping in the cellar and of setting the meter. The second charge is intended to cover the cost of digging the trench, supplying and laying the pipe, and filling in the trench. Sometimes, the actual cost is a little more than the above and some- times it is a little less. On the average, we just about break even and, since the cost referred to includes no over-head charge, I think the consumers should be well satisfied.
During the year, we installed 78 services and our part of the same cost $1,170.60. A somewhat larger amount, say $1,500.00, should be provided for additional services during 1922.
GAS METERS
At the beginning of the year, there were 2,785 gas meters in use and 83 in stock, making a total of 2,868. We purchased 28 during the year and condemned 3, making a total, at the end of the year, of 2,893. Of these, 2,854 were in use and 39 were in stock. The meters purchased cost $575.73 and I recommend an ap- propriation of $700.00 for 1921.
142
TOWN OF WAKEFIELD
OVERHEAD LINES
During the year, we bought half-ownership in 142 poles from the New Eng- land Telephone & Telegraph Co., extended our primary and secondary circuits and installed 207 new electric services. These additions to the lines cost $12,215.92 and $15,000.00 should be provided for the same purpose during 1922.
ELECTRIC PLANT
The electric plant, so-called, consists of a switchboard, station wiring, street lighting transformers and feeder regulators.
The station wiring is in a disreputable condition and should be entirely made over. This is one of the jobs I hoped to do and to pay for out of the depreciation fund but the call on that fund for additions to the distributing systems to take on new consumers prevented my doing so. It should be attended to at an early date and $1,000.00 should be provided for that purpose.
Need help finding more records? Try our genealogical records directory which has more than 1 million sources to help you more easily locate the available records.