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' S/SIDE CONGREGATION BUILDS NEW CHURCH -

The People’s Church on Ar- ‘cona Street, Summerside is nearing completion after near- ly seven months durmg which the men of the condregaticns

Controversy Is Sparked By Hillcrest Gravel Order

banded together to construct a beautiful new church of which thoy can be exceedingi; proud. ‘The church is expected to be

Eis!

in use by the first of the year. | Staniey Wells devotes his full time in ministering to the needs of the congregation.

SUMMERSIDE BUREAU! said he was talking to councillor | called the mayor a “‘pussyfooter’’ | > pa equit OF THE GUARDIAN Fred Arsenault one evening later’ and “now he has called me @ jjines are to be sold to Maritime 2€W unit will cost us approxim- -“who ordered the gravel for/on and Arsenault told him he liar as well’’, he continued.

Hillcrest?” . That is a question that was fot answered at a special meet-|

. img of Summerside Town Coun--

cil Saturday night.

Councillor Llewellyn ‘Rogers.

bought? What quantity? price paid? And was it with your, consent?

Councillor Dewar stated he been. talking to Frank Gal-

of

sell the town gravel as he, done last year. Councillor | stated he replied skat if meet the quality and he would have no

TECEE

FF

|'MAKES STATEMENT

Summerside who wanted *

had brought a few loads of grav-| el from Frank Gallant.

Councillor Rogers interrupted at this poigt, asking ‘Don't you think as chairman you should have bought the gravel. Not told it. had been bought?’’ Councillor Dewar replied it was a ‘small quantity, much about it.

Councillor Rogers then stated | that Councillor Leo Wood had made “A very uncomplimentary remark about me” ‘at a caucus meeting) ‘‘and I want to exoner- ate myself.” ~

He revealed that he had notic- ed a few loads of gravel stock- piled at Hillcrest as he was driv-|

“He said that Councillor Mor- rison shouldn't be on the coun-

ISLAND NEWS PAGE

2 The Guardian, Charlottetown, Mon. Dec. 7, 1988.

Sside Will

Purchase

New Generating Unit.

SUMMERSIDE BUREAU OF THE GUARDIAN

A new generating unit for the Summerside electric light plant has been authorized by the town council as the result of a resolu- tion passed unanimously Satur- day night at a special counci) meeting.

The unit, a 2,200 kilowatt gen- erator with vapor phase cooling will be purchased from Ordenda Industrial Limited of Halifax.

Councillor W.E. MacCauslaad, chairman of the electric lizht committee, told council that the

Saving Seen

By Line Sale

SUMMERSIDE ~— Chairman of the Summerside electric | light committee, W. E. c- Causland during his report to)

cost of the additional unit would

be $204,816 which was a consider-|

ably lower sum than ‘hat of the tender from Fairbanks-Morse.

He stated that the present cap- abilities of the town's plant was less than peak load and there- fore electricity has to be pur- chased from Maritime Electric. He added ‘that the saving, when the new engine is installed over present operating costs will be $35,000 to $40,000 annually and he added it won't take too many years to write off the capital cdést of the engine.

demands of. our present town’ customers ,— ximately 13 percent—coupled with the further expected increase in housing, has taxed to the utmost our present installed engine capacity forc- ing us into the immediate pur-

chase of a new diesel unit which | must be financed on an adverse |

bond market with the resultant

GETS SCROLL

\ A unique ceremony took place on Sunday, Dec. 6th, at St. Mar-

tin's Church, South Shore, when Edmond Handrahan was presented with an illuminated Parchament scroll, conveying , the Apostclic Blessing of Pope John XXIII. This rare honor «came to Mr: Handrahan in re- cognition of more than 45 years as a member of St. Martin's choir. Very seldom do circum- stances enable a person to use

—*

+ ‘

; ATLIED ) and Salat Toha © Ghd 48, Netty lows ot $32 am. and 444 pm.

F WEATHER '. feciynnem aes Rum 1s pn Ss SARE Sydney, Charilottetown,!p.m. Sdmmerside tide eighteem TORONTO (CP) — Tempera-|Moncton and Fredericton 35 and minutes later than Charlottetown.

tures issued by ithe weather ef-|48, Edmundston and Campbellton | Sun rises today at 7.37 a.m. aad

fice: oni, ma 34 and 48. sets at 4.32 p.m. .

Night Bay of Fundy: Southeast winds! ¢

Dawson ae , — 25 shifting in the forenoon to. Y’S MEN’S

Vancouver ........ 32 41 |Southwest gales 35; intermittent |

Victoria ..... ce 2 41 rain and drizzle; a few fog CHRISTMAS TREES

Edmonton ....... , 38 47 | Patches; visibility 10 miles lower- 2‘ On Sale From Dec. 10th

Calgary .........:. 39 51 {ing in precipitation to two miles’ At : :

IE gcc cé gence 25, 36 and in fog to near zero; mild. S’SIDE “Y” CENTRE

Winnipeg -++----> 2 45_-|_High tide today at Charlotte-|

SR ccs sedansete 32 39 od

Montreal ....: 37 43 ; :

Quebec ...... aa NOTI

Fredericton ....... 35 39

Saint John ........ 35 42 f =

Moncton ........-. 33 40

<<. : :| STUDIO CUSTOMERS

e.... @ 42 Sydney ...... ie 7 # % Stade i 28 i ae tremendous volume of business we | ave been forced to discontinue all sittings for

HALIFAX (CP)—The weather re :

office says a disturbance near - Chris s eae as at the close of business

Sable Island is slowly moving northward while another disturb-| ance is to | over Virginia. This second dis-| turbance is expected to move, near Quebec City by afternoon. | Consequently, little relief from) the damp weather is indicated |

Our thanks are extended to our many cus- tomers for making this Christmas season’s busi- ness so outstanding.

HECKBERT STUDIO

his voice in choir service for nearly half a century. After the | presentation, Mr. Handrahan made a suitable acknowledge- ment.of the honor conferred -on

council at a special meeting Sat- : urday evening said that the ad-|"C@vy interest charge to the visability of selling a portion of |"@tePayer with the resulting in- the town owned rural lines had |°T@S¢ in the tax rate, or paid been concurred in by Engineer-| for in cash from the proceeds of ing Services Ltd., Halifax, town ‘he Proposed sale of the rural electric consultants; L. W. Hac-| lines augmented by mionies al-

ker, town electric superintendent; J. A. Brophy, tewn manager and the electric light committee.

A total of 61.8 miles of .rural

Electric who offered the town $187.542 in a proposal sent to council dated Nov. 13. |

ready laid aside.

COSTS COMPARED It we pay cash the required

ately $215,000 installed. If we are forced to finance it through cap- ifal expenditure, bond issue over

cil,” said Councillor Rogers “and| Councillor MacCausland fisted; 4 Period of 20 years, the total added “how long is this going several benefits that will accrue Cost goes up to $43,000, just

on? If we can't hold council in to the town as a result of the sale, double. Peres gree pede ge tomes 4 i Oi coming

a sape and proper manner, I | want no part of it.”

including an annual saving

|

- “The yearly reduction of the

‘over $13,009 in interest alone, if debt plus interest would require

him and the parish, and receiv- ed the congratulations of his | many friends. isting rural rates to the ain | of the then existing rates of the | Maritime Electric which would further reduce our net income if not completely wipe out the pre-|

-

;sent small and unprofitable re- |

turn.

“Now is there any sane or sensible person who would, in the face of all this, say we should not dispose of this non-profit- able portion of our rural business* when we-have the opportunity of

further involved in additional

His worship asked Councillor the town had beon forced to fin- $18.000 per year to be added to

marks but again he refused. AWAITING ANSWER

an adverse bond market. dues Sm weit

per has a density of over 1

and he didn’t think Wood to withdraw his earlier re- ance the new diesel engine om our tax assessment or an increase | ; : ‘of -$1.38 per thousand of every erations meet a substantial part

~——|tax payer and the bulk to this °f Ur annual expenditures and 00 cus-|increased assessment would be|W¢ Wish to retain and increase |

capital outlays? “The profits of our electric light and power op-

Councillor Dewar then asked tomers-to the mile and the village! going to subsidize our rural op- | them rather than dissipate them

where Hillcrest got the-authority to name their streets. Mayor | Currie answered stating he had brought this matter to the attent- ion of Hillcrest housing author- ities and was awaiting a letter from them. |

Councillor Dewar then returned |

of St. Eleanor’s 35.

Analysis further that the annual cost of servicing | a rural customer is $38.46 against | the cost of servicing ‘a - town customer at $28.10. an increase as soon as we go outside our | immediate area of over 35 per-

ing by and on checking with the to the gravel issue and said “I cent. We can therefore include!

he knew nothing about it. A day or j

TSLAND BRIEFS

| * CROCKETT FUNERAL —Fu-| al services for Mrs. Herbert

. Crockett were held Saturday |

afternoon at Trinity United | Church in Summerside. Rev. C.

saw trucks hauling gravel in- | wasn't consulted as to what and nearness to town at a com- —

lor Arsenault and Town-manager Brophy. I feel quite hurt that

He swn—manager;-Mr—Brophy—said—think I should admonish Council- St, Eleanors, Summerside East

and Sherbrooke areas consider- ing their density of population

to Hillcrest and after checking Was to be done to the streets.” parable figure to our town costs,

with Councillor Dewar found the latter knew nothing about it. It, is understood that in the caucus meeting Councillor Rogers stated there was no one at Hillcrest to direct where the gravel was to be placed and it apparently was at this point that Councillor Wood took objection to what Councillor Rogers was saying.

APOLOGY REFUSED Saturday night however, when

R. Webber was the officiating | asked to retract his statement or |

clergyman. Pallbearers

MAYOR OBJECTS

Mayor Currie stated he also took objection with the way it was done as it should have been, through Councillor Dewar. Coun- cillor Dewar said he was doing | everything he could to improve Hillcrest streets. Councillor Rog- ers stated they were just throw- ing money away by putting grav- | el on those streets this time of year.

Dewar said he didn’t agree as

William A. Currie, Harry Hol- Councillor Wood refused to do for paving. man, Eric Woodside, Lorne Mac- either. There was considerable. Councillor Rogers tien injected

farlane. Donald Campbell and/controversy over what date this | “I

still haven't learned who

Ralph Silliphiant. Interment was happened, with Councillor Wood) bought the gravel. 1 think it’s

in the People’s Cemetery. _

_ LATE NOTICES

(

Councillor Rogers’ continued

jclaiming it to be Nov. 11 and time to tighten up some of these Councillor Dewar stating it was committees, so we'll know what's Nov. 9th or 10th.

going on.” Mayor Currie said payment to

stating that last year Councillor the men who hauled the gravel see announcements im Wood called the police, “‘gangs- has been held up and he wished

adjoining Classified Ad- ters’’: this year he called them to have the controversy cleared

vertising Section.)

MORRISON — At Toronto on Friday, Dec: 4, 1959, Leonard J. Morrison, formerly of Grand River, at age 34 years. For- warded from the Bowness Fu. meral Home Sunday afternoon to the home of his parents, Mr. and Mrs. Michael Morrison, Grand River. Fumeral to be ‘field on Wednesday, Dec. 9 to _&t. Patrick’s Church for Re-| * quiem High Mass at 9 a. m. Interment in church cemetery.

PICKARD — At the P.E.L Hos- pital on Saturday, Dec: 5, 1954, Mrs. George Pickard, West Royalty, in her 96th year. Re-| mains resting at the MacLean’ Funeral Home from where the)

funeral will be held on Tues-| costs and capital costs had been |

day, December 8, service com- | mencing at 2 p.m. Interment Highfield cemetery.

PETERS — ‘Suddenly on Sun-, Michael >

day, Dec. 6, 1959, Kenneth, 10-months old = son of Mr. and Mrs. W. B. Peters, 234 Fitzroy Street. His re- mains will rest at the Charlotte- town Funeral Home from 3 o’clock this afternoon. Fue) neral will be held Tuesday | afternoon at 2 o'clock. Burial” will be in the :Catholic ceme-|

tery.

CHISHOLM — At Prince County | Hospital, Dec. 6th, 1959, John| W. Chisholm formerly of Ken- sington, in his 82nd year. The remains are resting at Davi-| son's Funeral Home from) Where the funeral will take) place Wednesday morning. The |

will be moved to in-

remains

«* dian River Church for Re-

quiem High Mass at 9:30. In) terment in the church ceme-

tery.

Monuments Granite - Marble Bronze - Vere Beck & Son Ltd.

Memorial Craftsmen ‘Since 1870

S‘side Sells

| “doughheads”. He stated Wood, up so that the men could be paid.

(Continued from page 1) bers of the public utility board that our electric light and power operation needed overhauling. That considering our costs, we couldn't possibly be making the profits which we thought we were, and furthermore our rates should be lowered. Mr. Brophy, the town manager, who came with us at this time, and who’ had some practical experience in electric operation and administration un- dertook some investigation, ac-

| counting wise, and discovered

there was much substance in the first conjuncture. Separation of expenses as between operating

by estimate of approximately 70 percent operation and 30 percent capital, instead of actual separ- ate accounting.

INFLATED PROFIT

“Examination of some years showed the actual was in reverse of the estimates, consequently a large part. of oprational costs were capitalized and later form- ed part of bond issue require- ments which resulted in showing an inflated profit. Therefore it was impossible to tell exactly how much the profits had been over the preceding years or the relation of our rates to the pro- fits, ¥

“Public utility rates are set by the, various utility commissions to return approximately 7% per cent on invested capital.

“There had been so many en- tries and cross entries in our capital account and also because many of our records were lost through the fire, it was impos- sible to determine with any cer- tainity the amount of our capital investment.

We were therefore, in the alarming position of not having a base on which to establish proper

| rates, not knowing what our act-

ual profits were on rates in use and also of not having the re- cords available to establish our capital account.

The yemedying of all this was

and capacity. We therefore, un- der authority of council engaged the firm of engineering servi- ces Lid., headed by John Kay, recognized as one of the fore- most electrical engineers in the east, to determine our capital

~

investment, examine the opera-

ition of the plant and distrfbution |

of its energy and plan our rates in accordance with capital invest- | ment and required return.

Field work was started on June 10th 1957 — a complete report on | our capital structure was sub- mitted to us on May 10th, 1958. |

Following this a complete an alysis of operation procedure in- | cluding operation of plant, line crews, accounting procedure, |

expenditures was begun, because at the very beginning of this sec- ond phase of examination, it was discovered that we were not fol-

\lowing the rate schedule that |

| council had_ previously authoriz- red.

“There being 133 specially pri- vileged customers. We. were ac-

cordingly, instructed by our con- |

sultant to put the rate schedule as passed by council into 100 per- cent effect so they could deter- | mine exactly what. our income would be following our by-law.

RATES REVAMPED

All this led to the revamping of our town rates which took effect January 1, 1959. The rural rates were not alerted since they are reguiated and controlled by the commission of public utilities. | ' “This dissection ‘recalled the | extraordinary high costs of ser- | vicing rural customers as against | town customers due to excessive line loss and excessive cost of line maintenance due to limited numbers of line customers per mile\ with particular emphasis on winter costs.

This led US-to a complete and separate analysis of rural -and urban operations, which .reveal- |led that we were getting a re- | turn of 8.8 per cent on urban op- erations as against 4.36 per cent | on rural, having in mind now that | this 4.36 per cent included the more densely populated areas of | | St. Eleanors, and Summerside | | East to Read's Corner.

“If these are taken out it be- | comes very evident that our re-| turn would be extremely small | lon the balance of the lines, the |

particularly since those lines av- erage only & customers to the mile including the village of Mis- couche. Take Miscouche out and we have several areas of mile stretches without any customers, the lines of which must be main- tained. Against this, the town pro-

complete analysis of revenue and

}

|lines which we propose to sell, | understandably beyond our scope | |

which will allow us to lower their existing rural rates, while at the same time.the remainder of our rural customers will also receive a lowering in electric, rates from their new supplier whose rates are already establish- ed at lower rates than those now | existing from the town of Sum metside.

“So this proposed sale will prove advantageous to all our rural customers. It will also prove advantageous to the ratepayers of

were | apologize by Councillor Rogers, it would make a good foundation the town of Summerside.”

eration, and further, it would be |‘"rough an unprofitable operat, | 0

established |, comslete waste -because our |/0" Outside our town.

rural customers will get a 20 to 25 percent decrease in rate as soon as we relinquish our lines to the new supplier. | “Further, we have been in- formed by the Board of _ public utilities that if we retain the rural lines we will very soon be notified of a public hearing for

aa,

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