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LREPORT 0N TORONTO HYDRO- ELECTRIC COMMISSION. Civic Official Points Out Apparent Deficitâ€"Mayor Makes Reply. The city of Toronto auditor’s re- port upon the finances of the Muni- cipal Hydro-Electric Power Com- mission for the period from June 1, 1911, to June 30, 1912, was presentâ€" ed to the City Council Oct. 14. It says that at the close of 1911 an unadjusted balance of $16,- €795.62 was carried forward. How- ever, it declares that the making of a. good inventory disclosed a shortage of $113,477.40 between the amount standing in the books and the actual amount of stores on ‘hand. The report declares that it was apparently decided to charge the whole of the Working deficit on the books of 1911 to construction acâ€" count. "‘Entries were consequently made,” says the report, “charging the several construction accounts with a pro rata percentage of the total deficit as found amounting to $117,803.35.” This sum, it explains, is obtained after crediting the in- come earned during the period, and in addition to it there is an out- standing capital charge_ due the The City Auditor is of the opin- ion that a portion of the $117,803 should have been carried forward as a. charge against future earnings. He gives a. general review of the figures for the six months ending )June 30, 1912. He reaches the con- clusion that there was a deficit of $85,642.31 on the operations of the period. His statement of operat- ash from city uterest etc., charged by city, ourrieé to debit of capital ex- penditure Deficit on operating and gener- al expenses to date Provincial Hydro-Electric Power Commission amounting to $248,245.- 80. The following figures show the position of the civic plant on Dec. 31, 1911 :â€" ‘hie'i', 1911 Outstanding liabilities :â€" Unadjusted nems of city ao- Unadjusted stores shortage Due‘ Prov. Hydro-Electric Com- iPE RRI N “GLOVES éiDlFflR’SSTRUfigBRHIEESM ‘Total _9h_arge to 3131; Decem-l Eission .. bring in an Income for life. No capital required. Previ- ous experience not necessary. Apply for an agency ofâ€" (zresham life Assurance Society (Funds, $50,000,000. Estub. 1848) â€"â€"-a.nd of theâ€"â€" Domlnlon Gresham Guarantee & casualty Company Always suitable. Always stylish. INSURANGE AGENCY Bané lnvesfimen‘ég J. A. MAGKAY & COMPANY Head cause for Canada: 302 St. James St», MONTREAL ea in a DIRECT AGENCY will Spare time and energy invegtâ€" Guardian Bldg. MONTREAL ONDS constitule a First Mortgage Investment, yielding from 5 to 6%. giving equal security and income yield, without the trouble and expense, incidental to the drawing of mortgages and Colleclion of interest. This is ONE reason why Banks, Trust Companies. Estates, and Public Service Corporations buy Bonds. We have on hand, at a}! times. securities suitable for the safe investment of funds. See that the trade mark Is on every glove. Finds a Deficit. The best for all occasions. LIMITED Ruyal Bank Bldg, TORONTO $2,400,993 11 $2,610,995 00 92,198 54 117,803 25 16,795 62 113,477 40 248,245 81 378,518 85 ing expenses and earnings is as fol- lows :â€" Waxes, material, etc ........$215,674 85 Current. etc. 76,522 61 Carried to credit of depreciation __ A“ H reserve Accrued sinking fund (half year) Interest on bonds and advances (oneihalf charged to revenue).. $382,804 82 Earnings 297,162 51 The auditor calls attention to the fact that for the half year preceding June 30, 1912, no amount had been provided to meet accrued sinking fund charges, but that an item of $50,888 had been written into the balance sheet to cover the amount. Added to the deficit this made a total of $136,530 to be carried for- ward against future earnings. In addition, $36,305, the remainder of the interest account, would have to be added to capital account. The City Auditor thinks that such items should be charged directly to rev- enue. Treating them in this way, the present position, he says, would Total charge to 30th June, 191223 Summary. Deficit t9 lglst Dee., 1911, carried Total charge to 51st Dec‘ as above Cash from; git}: from‘jfit "iéiift'o’imh IIune, 1912 Int. credited by Com. 7 to Veranita] Vexpenf Deficit to 50th June, 1'91é".'.'.‘..'..' Agol‘ued sinking_ fiuqd at 301: June. xiiipi‘ov‘i‘ded for Proportion of int. charged to capital Net shortage to Soph June, 1912.$ 290,639 65 Outstanding liabihtieszâ€" Unadjustnd_ items in City Income Accounts. A oomparison of the principal in- come accounts for the six months ending December 3151:, 1911, and 30th June, 1912, respectively, is as follows:â€" Com. lighting .. .. . Com. power .. Mun. bldg. light .. Mun. power Mun. at. lighting Mun. bldg. Mun. power Mun. at. lig Meter rents Sundry credit items The City Auditor says that the system of bookkeeping in use by the commission is “cumbersome and smothered in detail.” He thinks that the volume of business of the civic electric department is, and has been, over-stated. He believes that considerable saving could be made in expense accounts. He points out that by the close of the year sinking fund and interest charges will have to be met out of earnings. He asks why “renewal and depreciation funds” and “sink~ ing funds” should be charged against the annual cost of the unâ€" dertaking, and expresses the opin- ion that the system of purchasing electricity on the peak load plan might well be superseded. Mayor Makes Reply. Mayor Geary, speaking of the au- dieor’s report, said that the book- keeping system of the civic commis- sion Ihad been built up under expert advice after years of experience, that the department was not over- staffed, and that the system of pur- chase of current had been decided upon by the Hydroâ€"Electric Power Commission of the province. The Mayor explained that the unadjust- ed balance of $16,795 at the close of 11911 represented a difference be- ? tween the revenue estimated by the City Council and the actual rev- enue, and, in the opinion of the commission, should not be charged to it at all. Of the item of $113,477 described as shortage on the stores’ account, the Mayor said that it was merely a question of bookkeeping. Certain invoices were charged to stores, while as a matter of fact the goods went directly to the job and were never credited when used. A great proportion of the amount had already been traced. The Mayor said that the sum of $248,245 given as due the Hydroâ€"Electric Power Commission of Ontario was not corâ€" rect. The amount, which referred to the eastern entrance, representâ€" ed claim plus interest to July 1, 1912, not the amount of the claim on Dec. 31,: 1911. The soâ€"called working deficit of $117,803, he de- scribed as a technical deficiency which might properly be included in the capital cost of the undertaking. It was due, he believed, to the dis- Treésurer’s account Shortage, stores account Prov. Hydro Com. 1911. 1912. Met Dec. 30th June. ...$ 57,104 78 $ 68,562 75 9,277 55 24,574 39 635 05 523 54 . . 4.313 _00 54,664 05 75,895 90 120,058 50 . 30 00 150 00 $147,254 06 $268,313 03 . 5,542 56 28,849 48 $150,796 62 297.162 51 1912233398506 84 1911. $2,610,995 00 $215,674 85 76,522 61 l 3 35,027 16 21,274 28 715,000 00 72.611 84 117,803 55 85,642 51 16,795 62 113.477 40 248.245 81 378,518 83 36,305 92 50,888 07 36,305 92 The‘ Mayor says that the loss for the quarter‘ending March 31, 1912, was $55,768, and the loss for the quarter ending June 30 was only $29,873. Of the first quarter’s loss, $17,056 is interest on investment, $17,065 is written off for deprecia- tion of the new plant, and $12,639 is put aside for sinking fund. The loss for the quarter ending June 30 includes also allowances for inter- est, depreciation and sinking fund. organization introduced into the op- eration service by the concurrent demands of construction opera~ tions. Mr. Geary declared that the loss for the quarter ending September 30, the net loss was only $4,647, and this, after allowing for interâ€" est $20,999, depreciation $19,443, and sinking fund $15,000. As a. matter of fact, he said the months of August and September had each shown a small profit got by civic enterprise. The gain, he asserted, was proceeding and the initial loss was being made good. Business, he said, had grown wonderfully. The city had 12,000 customers and a plant which could do many times the business with little additional cost, even for current. “We carry,” he declared, “against future profits the charge for sinking fund prior to January, 1912, $50,888, and our deficit for the first nine months of the first year, which is not an op- erating year, but rather a year of construction is $90,290, included in which is $51,470 depreciation and $36,381 for sinking fund.” Because Mother Looked So Well After Quitting Tea and Cotfee. A woman was almost distracted with dyspepsia. {ind heartfiroublg. Like thousands of others, the drugâ€"waffeineâ€"in coffee was slowly but steadily undermining her nervâ€" ous system and interfering With natural digestion of food. (Tea is just as injurious as coffee because it contains caffeine, the poisonous drug found in coffee.) “‘- “For 30 years,” she writes, “I have used coffee. Have always been sicklyâ€"had heart trouble and dyspepsia with ulcers in stomach and mouth so bad, sometimes, I was almost distracted and could hardly eat a thing for a week. “I could not sleep for nervous- ness, and when I would lie down at night I’d belch up coffee and my heart would trouble me. It was like poison to me. I was thinâ€" only weighed 125 lbs., when I quit coffee and began to use Postum. “From the first day that belching and burning in my stomach stopâ€" ped. I could sleep as soundly as anyone and, after the first month, whenever I met any friends they would ask me what was making me so fleshy and looking so well. “Sometimes, before I could an- swer quick enough, one of the chil- dren or my husband would say, ‘Why, that is what Postum is doing for her’â€"â€"â€"they were all so proud and glad. “When I recommended it to any- one I always tell them to follow directions in making Postum, as it is not good to taste if weak, but fine whon it has the flavor and rich brown color.” Name given by Canadian Postum 00., Windsor, Ont. ' Read the little book, “The Road to Wellville,” in pkgs. “There’s a reason.’ ’ Ever read the above letter? A new om appears from tlmu to time. They an genuina, truo. and full of human Interest. All the world’s a stage, but it lacks an asbestos drop curtain. “A‘rnn nmI-fi “PROUD AND GLAD” Analyses the Deficit. Easiest running and most satis- factory washing mucking made in Canada. Can be worked with side crank as well as top lever. Red Cypress Tub and the wholc top opens up‘ Wah day is the easiest day of the week when you wash with the Maxwell“1ligh Speed" Champion BIGH' 3131315.!) ' gEEWEL FAVORETE CHAMPION F003 CUTTER CHURN A report issued by the British Admiralty gives details of the total naval expenditure of Great Britain for each year since 1900, compared with the other chief maritime pow~ ersâ€"France, Germany, Russia, Italy, Austria-Hungary, the United States and Japan. Statistics Show Great Increase in Last Decade. From this it appears that the gross expenditure increased as un- der in pounds sterling :â€" 1901-02 1912-13 Great Britain 34,872,299 45,616,140 United States 16,012,438 26,540,010 Germany.... .. 9,530,000 22,609,000 The figures for France, Russia, Italy, Austria-Hungary and Japan do not admit of exact comparison, but in each case large and continu- ous increases are shown. As regards new construction, in- cluding armaments, Great Bratin Should Have Good Light for Studying A poor light strains the eyes, and the injurious effects may last for life. An oil lamp is best. The light from the Rayo Lamp is soft and mellow. You can read or work under it for hours without hurting your eyes. The RAYO is constructed scientifically. It in the beat lamp madeâ€"yet inexpensive Incl oconomicuL The nude of solid brassâ€"nickel plated. w a Lamp, Lighted without removing chimney or . shade. Easy to clean and “wick. Made in various styles and for all purposes. Dcalen Ewrywhcn NAVAL EXPENDITURE. is just what you need for your kitchen. So much easier, quicker and more convengg'nt than cutting up meat, etc, with a knife. “Jewel” is superior in every way to imported food choppers, and being made in Canada, costs less. THE IMPERIAL OIL COMPAflx, Limltod HALIFAX will spend this year £17,271,527, compared with £10,420,255 in 1901- 02, and Germany £11,491,127, as against £4,653,423 in 1901-02. Accidents on railways in the United States during the first three months of 1912 were responsible for the deaths of 2,383 persons. TOI'OINO. Sample free If youvwrno National Drug & Chemical Co. at Canada, leltod, makes the most delicious butter you ever tasted. It‘s real " quality " butterâ€"that is a pleasure to eat. Both hand and foot lcvcra and rolier bearings, enable a child to churn with thc“}<‘avourite".All sizes from % to 30 gallons A