Town of Reading Massachusetts annual report 1928, Part 16

Author: Reading (Mass.)
Publication date: 1928
Publisher: The Town
Number of Pages: 316


USA > Massachusetts > Middlesex County > Reading > Town of Reading Massachusetts annual report 1928 > Part 16


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Plans have been made and material purchased to increase the feeders on this line between the power, station and the junction of Lowell and West Streets in order to overcome voltage drop and reduce line losses.


Additional transformer capacity to supply service for about 100 horse power has been installed at the plant of the Wilmington Packing Company on Eames Street.


The Reading Rubber Manufacturing Company and Sanford Mills have added about 200 horse power load to our lines and I understand that about 300 additional horse power will be installed during the coming year. The Boston Stove Foundry are considering the installation of about 100 K. W. additional load at their John Street foundry.


Christmas Decorations


Continuing the custom of the two previous years, the Department installed lines of colored light's on Main, Haven, Harnden and Ash Streets. The small park between Main and Ash Streets was decorated and about 100 small trees attached to poles located on several streets near the Square were lighted with out-door Christmas tree sets. Two large trees on the Com- mon and one at Ernest Leach Park were lighted and a group of smaller trees on the grass plot on West Street at County Road were decorated with out-door Christmas tree sets.


211


In all, approximately 3,600 lamps were lighted from December 15th, through New Year's day.


The cost to the Department for labor, current and materials used was as follows:


Labor and truck, installing and removing $584.44


30.00


100 trees


40.92


186 lamps renewed


5,880 kilowatt hours at 2.7 cents


158.76


Total $814.12


The prizes offered by the Reading Board of Trade for home decora- tions were in a large measure responsible for the increased illumination of homes and stores.


Reading, at Christmas time, was again the Town which I believe was not excelled by any other Town or City near us in its electrical illumina- tions.


New Office and Salesroom


In accordance with the vote of the Town, we have negotiated an agreement for ten years, with Martin B. Hartshorn, covering a lease of the building and land at 177 Main Street which we took possession of on September 1st. The building is of cement block construction, with brick front and tar and gravel roof. It is 36 feet wide and 80 feet deep with a basement under the entire structure. Three large show windows permit an attractive display of electrical appliances. A room in the front is used for a salesroom and the display of lamps and appliances. The main office is on the South Side of the building. On the North side are the offices for the sales department, and Manager, and in the rear is the meter room and service department.


In the Northeast corner of the basement is a fire proof storage vault constructed in accordance with state requirements in which the records of the Department are stored. A room in one corner of the basement is being fitted for the demonstration of ranges and other appliances. The balance of the basement area is used for the receiving and shipping room, repair department and storage of supplies. A large space in the rear of the build- ing affords ample opportunity for parking and avoids congestion on the street.


Under the terms of our agreement, we are to pay the owner an amount equal to 6 per cent per annum on the cost of the building and land, and in addition to pay the cost of taxes, insurance and repairs. The following is the estimated annual cost to the Department:


Cost of land


$ 4,521.40


Cost of Building


12,976.97


Total


$17,498.37


212


6ºc on this amount is


1,049.90


Taxes (estimated)


450.00


Insurance . .


61.10


Repairs (estimated)


100.00


Total


$ 1,661.00


or an average monthly rental of


$ 138.42


The cost of fitting up the new quarters was $1,164.98 and the cost of moving $454.27.


READING MUNICIPAL


LIGHT DEPARTMENT ELECTRIC LIGHT, HEAT AND POWER


New Headquarters


---


New Salesroom


New Business Office


-


216


THE NEW RATES FOR RESIDENCE SERVICE


On September first we adopted a new schedule of rates for residence service, which is not unusual in form but is decidedly novel in its working or in its effect on the customer's bill.


The new schedule replaced the flat rate schedule which has always been used here, under which the consumer paid the same rate per kilowatt hours irrespective of the quantity consumed. The flat rate schedule of 7.2 cents net per kilowatt hour for residence service, offered no inducement to the consumer to make additional use of his lighting, or to make use of the various household appliances, as the cost increased in direct proportion to the amount of current used.


There has been for years a special rate of 2.7 cents net per kilowatt hour for current used for cooking, heating and refrigeration but in order to secure this rate it was necessary for the consumer to install special wiring and purchase and install certain appliances in order to obtain the low rate. It also required the installation of an additional meter, and the rendering of two monthly bills. Even then it was not possible to obtain the full bene- fit of the special rate unless the special wiring was extended to every room in the house, as well as the garage.


A few years ago, in order to relieve the consumer of the expense of installing duplicate wiring and eliminate one meter and the necessity of keeping two sets of accounts with a residence customer, we offered a com- bination residence rate to those customers who installed a range, water heater or refrigerator. Under this rate the first 25 kilowatt hours per month cost 7.2 cents net per kilowatt hour and the excess 2.7 cents net per kilowatt hour.


This rate was optional and less than half of the customers who used electric cooking took advantage of it and it did not benefit those who did not have a range, refrigerator or hot water heater. As the rate applied only to a comparatively small number of customers, it was claimed by others to be discriminatory, because it did not take into account the amount of current used.


Under the new schedule, all restrictions are removed and customers are enabled to make full use of the service for any purpose in any part of the premises.


The new rates are simple and easily understood.


The first 25 kilowatt hours per month cost 7.2 cents net per kilowatt hour.


The next 25 kilowatt hours per month cost 4.5 cents net per kilowatt hour.


217


All current in excess of 50 kilowatt hours per month costs 2.7 cents net per kilowatt hour.


It is doubtful if there is a more favorable rate for residence service anywhere in the State. As an illustration of the benefit of the new rate to the customer, the following comparison of the bills of one customer for four months is interesting :


1927 Old Rate


1928 New Rate


Month


K.W.H. Net Bill


Av. Rate K.W.H. Net Bill Av. Rate


September


51


$3.67


7.2


63


$3.28


5.2


October


61


4.39


7.2


111


4.57


4.1


November


68


4.90


7.2


118


4.76


4.0


December


84


6.05


7.2


133


5.17


3.9


Total


264


$19.01


7.2


425


$17.78


4.18


Increase in kilowatt hours used 61 per cent


Decrease in net rate 42 per cent


Decrease in amount of bill 6.4 per cent


It thus becomes possible for any residence customer to materially in- crease his usage of lights or appliances without a corresponding increase in his bills, provided that his present monthly bill is at least $1.80, net.


My estimate of the expenses of the plant for 1929 and the anticipated revenue, is submitted herewith and is followed by data from the office rec- ords :


ESTIMATE FOR 1929 Expenses


For Operation, Maintenance and Repairs


$174,162.00


For Interest on Bonds and Notes


3,575.50


For Depreciation at 4% on cost of Plant


27,186.35


For Bond Payments


11,500.00


For Note Payments


2,300.00


For Taxes


2,000.00


For Uncollectible Operating Revenues


2,500.00


Total Expenses


$223,223.85


Income


From Sales to Private Consumers


$228,301.50


From Sundry Sales


500.00


From Tax Levy


For Municipal Department


$ 5,000.00


For Street Lights


13,000.00


18,000.00


Total Income


$246,801.50


218


Respectfully submitted,


ARTHUR G. SIAS, Manager.


The Manager's report as herewith submitted is approved by the Electric Light Commissioners.


HENRY R. JOHNSON


HERBERT G. EVANS HARRY P. BAKER


Municipal Light Board.


DATA FROM RECORDS OF PLANT


Kilowatt Hours Manufactured


None


Kilowatt Hours Purchased


5,097,768


Kilowatt Hours for Reading Street Lights


259,482


Kilowatt Hours Sold


4,152,222


Kilowatt Hours used at station and office


25,625


Kilowatt Hours unaccounted for


914,041


Coal used-net tons


204


Average cost of coal per net ton


$


6.354


Poles added and renewed


501


Feet of Wire added


195,104


New Services Installed


319


New Street Lamps Installed


30


Connected Load Dec. 31, 1928


Number of customers


5,114


Horse Power in Motors


1,723.5


Number of Public Street Lights


1,626


Number of Private Street Lights


29


READING


Number of customers Dec. 31, 1928


2,868


Number of 40 candle power public street lights


3


Number of 60 candle power public street lights


524


Number of 100 candle power public street lights


15


Number of 250 candle power public street lights


80


Number of 600 candle power public street lights


46


Number of 1000 candle power public street lights


4


Number of 60 candle power private street lights


14


Number of 100 candle power private street lights


3


Number of 250 candle power private street lights


1


Horse Power in Motors


1,346.3


Income for year


$144,165.94


LYNNFIELD CENTRE


Number of customers December 31, 1928


376


Number of 40 candle power public street lights


147


Number of 40 candle power private street lights


1


Horse power in motors


19.1


Income for year


$12,303.32


219


NORTH READING


Number of customers December 31, 1928


687


Number of 40 candle power public street lights 290


Number of 40 candle power private street lights


6


Horse power in motors 160.8


Income for year


$26,050.83


WILMINGTON


Number of customers December 31, 1928


1183


Number of 40 candle power public street lights 504


Number of 600 candle power public street lights 14


Number of 40 candle power private street lights


4


Horse power in motors 197.3


Income for year


$45,692.04


, COST OF DISTRIBUTION SYSTEM IN OUTSIDE TOWNS


LYNNFIELD CENTRE


Total Investment December 31, 1928:


Poles, Fixtures & Overhead Cond. $ 23,448.93


Consumers' Meters


4,179.35


Line Transformers


2,540.25


Street Lighting Equipment


1,565.56


$ 31,734.09


NORTH READING


Total Investment December 31, 1928:


Poles, Fixtures & Overhead Cond. $ 52,160.90


Consumers' Meters


7,824.43


Line Transformers


6,403.90


Street Light Equipment


2,620.55 $ 69,009.78


WILMINGTON


Total Investment December 31, 1928:


Poles, Fixtures & Overhead Cond. $ 90,655.81


Consumers' Meters 11,427.67


Line Transformers 8,283.65


Street Lighting Equipment $ 4,083.74 $ 114,450.87


Total Investment-Outside Towns


Income-Outside Towns 1928


$ 215,194.74 $ 84,249.03


TABLE A


Income from


$25,668.87


$ 604.88


$10,000.00


$ 270.00


$13,228.57


$3,271.76


$4,429.32


$2,535.75


$3,556.00


$4,000.00


135,992.62


1911


31,317.40


410.77


5,800.00


1,000.00


13,066.25


6,353.77


5,753.84


2,767.00


4,079.78


4,500.00


144,714.06


1912


37,171.93


599.07


5,000.00


5,500.00


17,546.87


5,605.41


5,605.18


3,018.21


4,143.80


7,200.00


173,091.96


1913


44,664.70


671.87


6,000.00


5,076.19


20,054.99


10,705.42


10,214.88


3,515.40


4,788.80


6,800.00


202,518.81


1914


49,799.75


791.14


4,500.00


4,132.07


19,014.03


7,784.82


8,697.05


4,453.33


6,051.08


9,000.00


233,509.58


1915


51,603.32


640.25


10,500.00


none


18,292.78


10,329.83


7,730.32


4,640.42


6,972.28


9,500.00


254,349.09


1916


61,900.01


911.69


5,000.00


none


22,261.19


13,986.22


8,316.39


4,704.99


7,597.47


10,800.00


269,898.27


1917


67,593.64


2,422.92


8,750.00


none


30,460.16


14,557.81 13,572.51


11,311.54


6,882.24


8,529.85


14,800.00


348,871.08


1919


100,844.10


1,100.11


14,450.00


none


45,006.98


13,864.14


13;874.46


7,416.21


10,419.76


14,800.00


389,564.73


1920


126,152.11


1,094.66


11,000.00


none


56,187.74


17,085.95


17,142.48


7,850.70


15,507.13


18,300.00


421,048.20


1921


135,886.69


219.20


17,500.00


none


52,738.98


24,453.15


16,594.65


7,423.10


16,767.55


19,300.00


449,540.12


1922


155,505.14


451.50


15,300.00


none


55,137.36


22,473.04


38,489.58


6,807.64


17,959.59


16,800.00


477,852.76


1923


166,783.32


464.31


14,800.00


none


62,619.57


20,247.54


15,607.11


6,437.28


19,011:08


15,800.00


505,983.28


1924


177,889.16


1,373.72


12,000.00


none


61,286.63


25,898.28


30,817.91


6,174.57


20,136.30


15,800.00


530,147.28


1925


185,492.72


1,112.19


11,000.00


none


73,140.10


28,272.55


34,188.95


5,482.46


21,102.86


13,800.00


568,524.09


1926


201,956.03


467.05


12,000.00


none


88,478.94


29,349.46


31,167.10


5,100.14


22,637.93


12,800.00


615,915.35


· 1927


221,343.72


599.88


13,500.00


none


67,661.31


50,863.76


34,551.95


4,763.62 24,533.58


15,800.00


651,367.92


1928


228,414.97


585.27


13,500.00


none


67,410.22


55,481.57


44,676.08


4,062.79 25,951.68


14,800.00


682,234.74


December 31


Year


Sale of


Electricity


Income from


Other Sources


Appropriations


from Tax Levy


Street Lights


Appropriations


from Tax Levy


Construction


Production


Expense


Distribution


and Utilization


Expense


Miscellaneous


Expense


Interest


Depreciation


Bond and


Note Payment


Total Cost of Plant


285,428.29


1918


78,096.09


1,537.86


11,000.00


none


41,006.13


11,577.08


5,070.43


8,096.95


11,300.00


for


for


1910


TABLE B


Year


K. W. H. Generated


K. W. H.


Purchased


K. W. H. Sold


K. W. H.


Delivered to


Read'g St. Lights


K. W. H. Used to


Stat'n Stock R'm


& Appliance R'm


K. W. H.


Unaccount for


Net Tons of


Coal Used


Average Cost of


Coal Per Ton


Number of


Customers


Number of


Street Lights


Horse Power in Motors


1910


698,597


300,861


227,100


16,269


154,367


1,748.3


3.461


738


269


116 1-2


1911


771,011


367,317


244,055


15,403


144,236


1,807.6


3.341


888


382


215


1912


919,282


481,801


242,033


13,307


182,141


2,247.8


3.741


1,078


698


242 1-4


1913


1,045,592


599,893


255,744


15,283


174,672


2,680


3.941


1,263


903


272


1914


986,476


578,709


187,590


15,283


204,894


2,496.4


3.666


1,390


993


313 7-10


1915


980,688


548,607


156,505


10,403


265,173


2,298.2


3.578


1,599


1,181


381


1916


1,231,677


751,735


170,810


13,916


295,216


2,741.7


3.934


1,805


1,225


441


1917


1,291,216


812,507


168,535


12,464


297,710


3,086.7


6.348


1,964


1,295


492


1918


1,318,546


976,121


125,820


10,573


206,032


3,348.8


7.875


2,083


1,303


672


1919


2,056,834


1,358,028


172,948


189,067


336,791


3,640


7.517


2,333


1,339


886


1920


2,297,237


1,444,960


175,704


257,999


418,574


3,615


10,352


2,617


1,363


812.5


1921


2,193,092


1,471,698


178,892


146,206


396,296


3,308.4


10,171


2,939


1,473


1,120.5


1922


2,609,076


1,583,716


183,250


276,477


565,633


3,791.5


9.00


3,234


1,481


1,197.5


1923


3,039,677


3,520


2,046,848


183,935


342,189


470,225


4,577.7


8.94


3,666


1,494


1,367.5


1924


3,572,588


2,463,602


209,738


392,281


506,967


3,379.5


6.503


4,058


1,537


1,281 .8


1925


4,051,182


25,495


2,848,309


241,476


383,152


578,245


6,317.7


6,358


4,472


1,572


1,395.2


1926


3,600,580


819,787


3,071,944


249,386


366,352


732,685


5,740.2


6,488


4,786


1,602


1,429


1927


406,693


4,396,397


3,676,545


261,361


58,249


806,935


947


6,609


5,017


1,635


1,630.9


1928


None


5,097,768


3,898,620


259,482


25,625


914,041


204


6,354


5,085


1,655


1,723.5


222


TABLE C Production Costs Per K. W. H. Based on Total K. W. H. Delivered at Switchboard


K. W. H.


Total


Year Purchased


Fuel


Labor


Repairs and other Station Expense


Costs


1910


.0086


.0075


.0026


.0187


1911


.0078


.0069


.0021


.0168


1912


.0091


.0071


.0027


.0189


1913


.0101


.0070


.0020


.0191


1914


.0092


.0082


.0017


.0191


1915


.0085


.0087


.0013


.0185


1916


.0087


.0071


.0022


.0180


1917


.0144


.0075


.0015


.0234


1918


.0200


.0085


.0025


.0310


1919


.0133


.0066


.0019


.0218


1920


.0162


.0071


.0009


.0242


1921


.0153


.0077


.0009


.0240


1922


.0131


.0066


.0014


.0211


1923


.0134


.0057


.0014


.0205


1924


.00979


.0055


.00166


.01695


1925


.00991


.0054


.00272


.01803


1926


.0285


.01034


.0056


.00212


.0200


1927


.01116


.01205


.00246


.00390


.01743


1928


.01227


None


.00170


.00225


.01622


TABLE D


Average Cost Per K. W. H. As Defined by Chapter 164, General Laws


1


1912 1913 1914 1915 1916 1917 1918 1919 1920


Operating Costs :


.0397 .0483 .0362 .0586 .0467 .0577 .0538 .0509 .0558


Fixed Costs :


0198 .0176 .0254 .0299 .0261 .0249 .0274 .0213 .0259


Total Costs :


.0595 .0659 .0616 .0885 .0728 .0826 .0812 .0722 .0817


1921 1922 1923 1924 1925 1926 1927 1928


Operating Costs


0640 .0561 .0494 .0377 .0442 .0448 .0395 .0414


Fixed Costs :


.0330 .0278 .0185 .0138 .0131 .0129 .0115 .0116


Total Costs :


.0970 .0839 .0679 .0515 .0573 .0577 .0510 .0530


ACCOUNTS PAYABLE-December 31, 1928


American Ironing Machine Co.


$ 230.95


American Railway Express Co.


10.24


Addressograph Co.


17.25


Abbott, H. L.


2.00


Ansonia Electrical Co.


1,216.49


223


Buckminster, Geo. H. Co.


2,026.15


Bowen, C.


1.75


Boston & Maine R. R.


15.86


Bennett, Van I.


46.95


Bailey, J. Brinton


72.36


Burke, Frank


102.65


Cummings Express Co.


42.98


Clapp & Leach, Inc.


30.19


Century Electric Co.


4.66


Conover Co.


83.70


Charles, M. F.


22.25


Central Garage


7.82


Currell, E. B. & Son


20.22


Dyer Clark Co.


201.90


Dayton, Paul W.


105.75


Dustbane Mfg. Co.


8.32


Dickinson, O. L.


8.00


Dickinson, L. W. & Sons


18.00


Davis Transformer Company


74.80


Davis, Louis


9.47


Davis, Geo. W. Co.


7.75


Electric Time Co.


9.84


Electric Specialty Co.


.75


Edison Electric Co.


13,128.20


Eureka Vacuum Cleaner Co.


3.13


Eaton, Frank S.


5.40


Eames, Ernest W.


40.00


Franchur, Inc.


11.75


Fife, T. C. Inc.


3.80


Federal Engraving Co.


4.58


Francis Bros.


.48.07


Graybar Electric Co., Inc.


715.19


Goodheart Co., The


270.05


General Electric Co.


2,811.04


Gulf Refining Co.


119.36


Gillis, J. W. & Co.


3.13


General Motors Truck Co.


1.75


General Electric Supply Corp.


419.24


Granite State Electric Supply Co.


202.50


Geier, P. A. Co.


506.25


Hynes & Cox, Electric Corp.


218.20


Hygrade Lamp Co.


312.70


Hartshorn, Martin B.


814.44


Hoover Co., The


147.96


Harnden, E. E.


42.84


Hardy, F. S. & Co.


27.90


.


224


Ide, Geo. W. S.


25.00


John St. Garage


.75


Johnson, C. C. .


1.50


Jefferson Glass Co.


18.25


Joslin Show Case Co.


110.00


Kelvinator Sales Corporation


437.07


Kenney Service Station


125.65


Lowell Electric Light Corp.


12.66


Lindsay, Alex


2.50


Landers, Frary & Clark


51.72


Linscott Motor Co.


5.45


Lewis Electrical Supply Co.


92.13


Lightolier Co.


41.70


Laffin, D. M.


12.50


Martell, A. E. Co., Inc.


59.46


Marshall, George W.


2.45


Mass. Dept. of Public Works


273.92


Mass. Reformatory


200.42


M. P. A. Associates of Boston


24.00


N. E. Tel. & Tel. Co.


116.95


National Lamp Works


652.46


Prentiss & Parker


960.41


Reading, Town of, Sewer Dept.


S.40


Robbins-Phalon Co.


301.38


Roeblings, John A. Sons Co.


142.00


Remington-Rand Service Co.


210.00


Reading Motor Co., Inc.


73.08


Rome Wire Co.


609.64


Stembridge, S. R.


10.50


Standard Underground Cable Co.


13.75


Spaulding Moss Co.


1.21


Smith, Fred F.


36.55


Salem St. Service Station


.70


Sager Electric Supply Co.


13.00


Steele Furniture Co.


40.00


Simplex Wire & Cable Co.


40.87


Sweetser, Percy N.


90.36


Twombly, W. E. & J. F.


165.43


Totten, R. W.


56.24


Vye-Neill Co.


771.61


Wright, M. S. Co.


20.50


Wetmore-Savage Co.


1,931.09


Wahn, Geo. H. Co.


511.53


Willis, W. H.


2.25


Westinghouse Elec. & Mfg. Co.


302.64


Wallace, F.


4.29


225


Walker Pratt Mfg. Co.,


90.00


Wakefield Radiator Co.


3.50


Wendell Bancroft Co.


16.65


Yawman & Erbe Mfg. Co.


69.67


Zanni, Angelo


24.00


Total


$32,888.57


$ 155.75


155.75


$32,732.82


REPORT OF AUDITOR FOR THE YEAR 1928


January 31, 1929;


Municipal Light Board:


Reading, Mass.


Gentlemen :- Complying with your order, we have made an annual audit and examination of the books and records of the Municipal Light Department for the year ending December 31, 1928.


The Exhibits and Schedules listed below are attached as part of our report :


Exhibit


"A"-Comparative Balance Sheet-December 31, 1928-1927


"B"-Comparative Operating Statement-January 1 to December 31, 1928-1927


"C"-Comparative Profit and Loss Analysis-January 1 to December 31, 1928-1927


"D"-Comparative Detail of Electric Income-January 1 to December 31, 1928-1927


"E"-Comparative Detail of Electric Expenses-January 1 to December 31, 1928-1927


226


Schedule


I-Bond and Note Record and Accrued Interest December 31, 1928 II-Accounts Payable-December 31, 1928


III-Bonded Employees-December 31, 1928


Plant Investment-$415,679.50


Additions to plant amounting to $30,866.82 have been made during the year. This consists principally of services and extensions, with ordinary increases in other accounts.


Depreciation amounting to $25,951.68 has been written off this year, besides $22,159.76 having been spent for Maintenance charges.


General Equipment-$12,371.51


This class of fixed assets shows a net increase of $4,952.69 over 1927. A large part of this is accounted for through the purchase of additional office equipment for the new office and store on Main Street.


Current Assets-$90,339.93


Petty Cash Fund-$250.00


This fund was counted and found to agree with the ledger control. All payments from this fund were current.


Consumers' Deposit Fund-$2,235.75


This is a separate fund which is handled by employees of the department. It was verified and reconciled with bank statement.


Accounts Receivable-Consumers-$19,167.67


Individual customers balances were checked and found to agree with the control.


An amount of $3,440.74 or 18.0% was found to be 90 days or more in arrears.


Bad Debts in the amount of $1,023.62 have been written off this year in this class of Receivables as being uncollectible.


Accounts Receivable-Miscellaneous-$15,913.21 ,


The individual customers ledger accounts were checked and found to agree with control.


Bad debts amounting to $1,748.21 have been written off this year being considered worthless.


Materials and Supplies-$52,773.30


Inventories of various classes of supplies have been taken by employees of the department. These were not checked by our office. However, book values have been adjusted to agree with all physical inventories taken.


227


Prepaid Items-$408.73


This represents prepaid insurance premiums unexpired. From policies in evidence this figure is correct.


Appropriations for Construction-$30,678.26


No appropriations were made from tax levy during 1928.


Bonds Payable-$77,500.00


The above amount represents the total Bonds Payable as of December 31. 1928, $11,500.00 having been retired during the year with no new issues.


Notes Payable-$3,600.00


This represents notes outstanding as of December 31, 1928. An amount of $3,300.00 has been retired during year and no new issues contracted.


Accounts Payable-$32,732.82


Schedule II shows a detail of the various unpaid accounts. These date back to September 1928.


This above includes cost of electricity purchased for months of November and December 1928 amounting to $11,035.70.


1


Consumers' Deposits-$2,235.75


Individual customers records were checked and found to be in agreement with the control.


Interest was noted as being paid on these accounts December 31, 1928.


Interest Accrued on Bonds and Notes-$893.95


Schedule I shows detail of this accrued item found by us to be correct.


Other Accrued Items


Due Treasurer per Lighting Department Records $ 10,310.24


Due Treasurer per Treasurer's Records 9,590.17


Difference $ 720.07


This difference is due to deposit of January 2, 1929 being in- cluded as December business in Treasurer's record, and not used until January business in Electric Department.


This indebtedness has existed since 1925 and it is very apparent from this and also from non-current Accounts Payable that the working capital of this department is insufficient.


The Treasurer receives no interest on this loan from the Electric Department.


228


Loans Repayment-$277,800.00


This account has been increased by Bonds Paid during the year amounting to $11,500.00, and Notes Paid amounting to $3,300.00, or a total of $14,800.00.


Electric Operating Revenue-$228,858.62


Although a substantial reduction of rates went into effect on September 1, 1928, revenue from electrical operations has shown an increase of $7,072.60 or 3.2%.


Distribution or classification of many expense items was con- sidered improper. For Example: Commercial Expenses as shown in Exhibit E show a decrease and General Expenses show an increase. We believe proper classification will show normal increases in both departments.


Suggestion is made that 1929 classifications be more suitable by removing certain General Expenses to Commercial Expenses. Likewise other Departments are effected by improper classifications.


It is suggested that the account 674-Stores Expense-be used in 1929 and concurrently the "unit cost" of Material used for operating and construction be corrected-to be "cost-landed-in-stock."


Materials used for capital accounts to be increased by per- centage of total amount (dollars) only and credited to 674 Stores Expense account.


The net balance of 674 Stores Expense account will reflect the operating cost of Material and Supplies department.


Non-operating Income-$141.62


Jobbing appliance business shows a slight net profit this year as compared to a loss last year of $1,248.65.


General


From observation of commercial accounting methods and equip- ment now in use many detailed changes could be effected, we believe, to render department more efficient.


This department does not operate the so-called "perpetual" in- ventory system and it is suggested that all inventories be calculated and adjusted as of December 1st each year rather than December 31st. By so doing your accountant will have ample time to study inventory differences and make suitable adjustment thereof prior to the "closing period" of your general accounts, report of which must be completed in time for insertion in the printed Town Report.




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