Arizona republican., 1909-04-09
New Schedule For Gas and
 Electricity to Be Announced REPORTS MADE TO COUNCIL
Supt. Ensign's Statement Follows the Report of the Committee Appointed to Compare Prices With Those of Other Cities.

night before the city council by Super intendent Ensign of the Pacific Gas and Electric company that new schedule of rates, making substantial reductions over the present rates, will soon be published
 This announcement followed the presentation of the majority and minority report of committee ap- pointed by the council to ascertain the cost of the production and distri- button of gas and electricity in towns of a similar size to Phoenix. The ma jority report was signed by Charles Korrick, Charles H. Akers. r. A. Thar aldson and C. w. Mckee. The minor ity report was submitted by NJ. c. Me Dougall.
 In making his announcement of the reduction in the price of gas and cleo tricity MT. Ensign said that the cheap CT rates would be made. not because the cost of production would be les sened on account of the contract en- tered into with the government to sup ply it power, but because of the growth of Phoenix and added patron age. The first of September is the very latest date set for the supplying of electricity to the company by the Roosevelt dam and the new schedule of prices will be made probably before that time.
 Tn our contract with the govern ment" said MT. Ensign, we are sim ply exchanging kilowatts for oil with out a dollar of profit to ourselves. At one and half cents per kilowatt there will be no profit for US. It costs us that much to generate at the present price of coal and oil"
 The majority report submitted to the council investigated into the earnings of the company and the price of gas and electricity in other cities.
 It purported to show that the pres ent rates could be reduced and still leave a fair margin of profit to the company It was stated that a num- Der of business men would soon apply for a franchise to start an opposition electric and gas company with the stipulation in the franchise that the plant would be truned over to the city when that might appear advisable.
 The minority report of M C. Mo Dougall was then read. MT. McDougall said that he had not signed the ma jority report because he had not had an opportunity to carefully examine its contents. and for a number of oth- CT reasons stated.
 l.. F. Chalmers, president of the company. then addressed the council. He asserted that as. soon as the gov ernment contract was taken up the rates would be re-vamped Tt is a mistaken idea said MT. Chalmers, that we get our power cheaper than the companies that use water power. We don't make the profit; the gov ernment makes it. One and a half cents a kilowatt sounds cheap but it is just what it would cost us to produce the power with coal at s9.60 ton and oil at s15O a barrel. We were fools to make that ten years contract and we know it now. If the government sells all it's power at the same price that we pay for it the cost of the dam will be paid for in ten years and every acre of land in this valley under the reclamation project will pay a div idend of s15.
 Mir. Ensign then took the floor and said that bids for the construction of the new power house would be let Sat urday and that the contract called for the completion of the plant within 105 days. With these improvements under way he did not think that the council should take action at the present time on the subject. He then announced that the rates would be lowered with out outside coercion.
 On motion of Councilman Marshall, the reports, together with the large correspondence from the other cities, was referred to the committee of the whole and their consideration post poned on account of the absence of two of the members.
 The only other business transacted by the council was the referring of a bill, presented in behalf of a client by District Attorney Bullard, to the su- perintendent of city streets for invest igation. Mir. Bullard said that March ?, watermain burst in front of the Ford hotel, and the water, being allow ed to flow for some time. dug out a gully. David Shear drove down the street in his car at moderate speed and ran into the gully breaking the axle of the car. The bill presented