Arizona republican., 1908-04-22

man present was bound to secrecy, though it was a matter of common knowledge among newspaper men that there was something doing but all were charged to say nothing that the best interests oi the community might be served. Monday night there was another joint meeting at which the city and county attorneys were pres ent. MT. Bullard reported in effect that he had examined not only the agreement of June 22. 1907, but the con- tract of 1901 between the electric light company and the Arizona Water Tom- pany. concerning its utilization of the power canal and on which contract the electric light company based its claim of a vested right when the govern ment bought the canal system, a right that was valuable to the company and on surrendering which it was guaran- teed commensurate protection in the purchase Of power. MT Bullard said that in his opinion this old contract was void, being a trust in restraint of trade and there was no obligation on the part of the government to observe it.
 Mr. Prescott reported concerning his
 
 Pacific G. & F.. company under it's present city franchise and an older one to which 1t has succeeded. the result of which opinions was the deduction that the matter under discussion between the joint clubs. the government and the lighting company. was one in which the city had a vital interest.
 A comprehensive letter was read from Robert Craig. superintendent of the city water department. announcing the cost of producing light and power He said the city had l02 lights for which 1t is now paying five cents a kilowatt, that it is paying 3-4 cents a kilowatt for power for pumping. To this is an expense equal to half a cent kilowatt, accruing through the necessity of keep ing the boilers of the steam plant hot for use in the event of a fire as emer- gency power It was conveyed by his letter that were the city to generate it's own power by the use of oil it could be done at an expense of two cents a kilo- watt.
 There was much discussion and de- lay was counseled until Mir. Hill could be secured for conference. fearing that the matter if made public would be considered as a censorfng of the government. which was not intended It was finally decided to hold another meeting yesterday morning, inviting Judge Kibbey, counsel for the Water Users Association to be present. MT Stannard for the reclamation service. and other lawyers mentioned. This was done, Mir. Stannard appearing with
 
 stenographer.
 Mir. Stannard stated that he had found on further investigation that the contract in conformity with the agree ment heretofore mentioned, had been signed July 10. 1907, hence the trans action is already consummuated as The Republican announced July 23. 1907.
 Dr. Foss, a member of the council Of the Water Users Association. said he knew nothing about it. Judge Kib- bey said he may have heard of 1t in the way of a rumor or talk but he had had no official cognizance of it and had not passed on it. Captain Alex ander. United States district attorney. stated on Monday that he knew noth- ing about the contract.
 A committee of five was appointed and requested to confer with the city government and with it's representa- tives to call upon the manager of the Pacific Gas and Electric Light con- pany and try and devise a way to modify the contract and give the city better protection. The committee was instructed generally to cooperate with the city in seeking relief. legally if nee essary and also to further the matter of securing regulation Of charges for the service of public utilities
 F. H. Ensign. manager of the Pacific Gas and Electric Light company. was seen and asked for an expression. He said he hardly knew what to say until he had been informed of what was talk ing place on the other side of the controversy. He had no intimation of what was going on until noon yester- day and had only learned that he was charged with monopoly. restraint of trade. trying to get his power too cheaply and sell it too high. etc. but he had nothing specific to work unOn. He was told that the matter was a discussion of the contract with the government. which the investigators had taken exception to. and which they had been ~ was based primar- fly on a former contract which local at tOrneys had declared was void. Con corning the latter he naturally replied that he believed the contract was good as also is the one he now has with the government. Asked if he would he willing 70 have the new contract pub lished he said he had no objections to it in the world but he believed it should first be given out by MT. Hill and he did not care to make it public without MT. Hills autho-''-- '-- Ensign however permitted the report CT to look at the contract and to quote from it this pertinent paragraph:
 Article 2.-The first party. govern menu further promises and agrees to furnish and deliver .t ali times dur ing the continuance of said term (ten years) electric power up to max imum load of 1900 kilowatts at it's peak and to exercise due diligence in serving said power. subject to un- avoidable accidents, delays, shutdowns for repairs and other causes hereinaft- CT stipulated. It is understood that at no time shall the party of the first part be obliged to furnish power ex- ceeding a load of 1900 kilOwatts," (equal to about 2100 h. p)
 Regarding the exclusiveness of the companys franchise MT. Ensign said the contract stip