The Richmond Palladium And Sun Telegram

Operating Expenses of Voting Machines Not Only Item in Statement—County Taxpayers Must Pay Depreciation and Interest Charges Annually From Tax Levy.

In a statement to the Palladium, Thursday, Charles W. Jordan, secretary of the Commercial Club, said it is unfair for opponents of voting machines to assert that the item of depreciation should be charged to the cost of voting with the machines.

"They are to be paid out of the money that they actually save us," he said. "It is certainly fair to suppose that they will be the means of saving us enough money during their life to pay for their actual purchase. Then when they are worn out we can buy other machines on the same terms. All that can fairly be charged against the machines is interest on the money invested."

The Palladium will grant that if there is any saving through the use of voting machines, the amount so saved can be applied to taking care of the annual depreciation on the machines. That there will be no such saving, but, on the contrary, an actual increase in the cost of elections and registrations is the contention of the Palladium. It took this stand in its Saturday issue and backed it up with figures.

Jordan Uses Erroneous Basis.

Of course, Mr. Jordan undoubtedly bases his statement upon the saving shown in the figures submitted by County Auditor Bowman in estimating the cost of the 1914 election and registration, with and without voting machines. As the Palladium showed Saturday, however, Mr. Bowman's figures, due to his having been given wrong instructions to start with, were inaccurate in their conclusions. They gave the estimated cost of the election and registration as 42½ per cent of the cost under the Australian ballot system. The basic inaccuracy in this manner of figuring lies in the fact that the cost should have been figured on what the actual operating expense of the machines themselves amounts to.

The auditor estimated the cost with machines would be $2,447.10, a saving of $3,320.20 above the cost by the Australian system.

The Palladium estimated the cost with machines would be $7,175.44, or $4,728.34 more than the cost estimated by the auditor, and $1,408.14 more than the cost would be with the Australian system!

Considers Operating Cost Only.

Mr. Bowman, of course, really only gave the OPERATING COST of the machines and the registration, and he arrived at that in the wrong manner, inasmuch as he tried to figure the cost of the machines as 42 per cent of the cost of the Australian system, because twenty-eight machine precincts would be 42½ per cent of 66 Australian ballot precincts.

The Palladium not only gave an accurate OPERATING COST based on what the machines have cost in Marion county, but it also took into account two equally important items, namely, DEPRECIATION and INTEREST.

All machinery eventually will wear out. Hence, there must be a fund, raised by yearly contributions during the life of the machinery, that will pay for replacing the old machinery when it is junked in favor of new. This fund is called the depreciation fund. The yearly contribution is called the annual depreciation charge.

Interest always is charged on the investment in machinery of every description. Such interest is as immutable, as unescapable, as death itself.

When the county invests in voting machines it takes from you in the shape of taxes money that you could otherwise loan out at interest. Unless it would fool itself and you, the county must therefore charge itself with the loss of interest on the money invested in the voting machines.

Comparison of Two Estimates.

Therefore, to repeat the two comparisons of estimated costs, the Palladium's and Mr. Bowman's:

Palladium's estimate—
Operating Cost—28 mchn. pcts.
Marion county basis. $2,156.00
Two registration days
Mr. Bowman's figures 1,029.44
Depreciation—$21,000 invest-
ment. 20
years life
of mchn.,
5% per annum, 2
year period 2,100.00
Interest—$21,000 investment, 4½%
c yearly, 2 year period...... 1,890.00
Total Biennial Cost $7,175.44

Mr. Bowman's Estimate
Operating Cost 2,447.10
Depreciation
Interest
a.5.
Total Biennial Cost $2,447.10
Difference $4,728.34

Expected Saving Disappears.

The $3,320.20 saving upon which Mr. Jordan has been relying to pay depreciation, and $1,408.14 in addition, in other words, is swallowed entirely in order to make up that discrepancy of $4,728.34!

If Mr. Jordan is satisfied with these results, the Palladium respectfully invites him to join it in again requesting the board of county commissioners NOT to ask the county council for another appropriation with which to purchase voting machines until a thorough and comprehensive investigation can be made into their merits and drawbacks, in comparison with the present Australian ballot system.