El Paso herald. (El Paso, Tex.) 1901-1931, 1910-04-26

interest and 2 percent deprecia-
ton, $50, OOO",-is enigmatical Is II
intended that the rates shall be
so established as to insure tne
stockholders an annual compensa-
ton to that amount, as mini
mum? 1t is difficult to comprehend the
process by which the sum stated was
reached. The outstanding stock aggre-
gates 7O5,374 shares, and assuming that
the shares issued to the agent and
counsel-I2.OO0 shares-were accepted
in payment for services valued at $4,000,
the total amount paid for the outstand-
ing stock in money and services aggre-
gated $29S,4S4. If the item under con-
sideration should be allowed the stock
holders will receive a minimum Of more
than 6 percent interest upon what was
actually paid by them
The master fully concurs in the views
expressed by the Wisconsin commission
that sit is not easy to get away from
the fact that investors are ordinarily
entitled to reasonable returns on the
amounts that have been reasonably. le-
ultimately and honestly invested in
public utilities and lit is usually the
most profitable from social DC mt not
to so restrict conditions under which
business is. done as TO discourage I'M
dertakers from putting their best eff
forts into enterprises and that IF the
rates are kept at so low a point as to
offer no chances Of any kind for any
returns 20 the owners above those
which are absolutely necessary to keep
the plant running, ii is almost GER
tain that all progress in these indus
tries will be greatly retarded, and that
the interests Of the public Will be less
well served in the end than il more
liberal policy with respect to rates had
been adopted -
Owners Receive Small Dividends.
He recognizes that the owners have
to date received only percent divt-
1end upon their shares and that this
was not paid from the operating rev.
enues OF the company. and also that
none of them have been borne on fne
salaried list OF the campany-
Yet in view of the circumstances IN
which the company Is involved. he IS OF
the opinion that the stockholders
should be content with a compensation
OF 10 percent interest annually upon
thu sum -stated-s29S. 4S4trusting that
the revenues OF the company will con-
tinue to grow as in the past. and that
with the increasing prosperity which.
it is confidently believed VIII surely
come, their compensation win also in
crease.
The conclusion Of the master is that
the rates should be so fixed as that
the company will realize annually upon
its earnings the sum Of 1925 upon
an estimated value Of 81, 407. s6Athe
company. Of course, to have the ben
eft OF increasing revenues after the
rates shall have been established on
the basis stated.
Unable to Fix Rates
The master, from the information be-
fore him. Is unable to say what such
rates shall be. and he therefore recon-
mends rhat an expert be called to so
arrange them as TO be the least burden
some upon the city and its residents.
and with proper regard to existing
conditions
The question involved in the contro-
versy between intervenors and the re-
ownership OF the international Water
is as to the proper cOnstruc-
ton of the provision in the following
clause, which appears in the original
amended ordinances, under which the
company IS operating: That the said
Water company and its
assigns shall furnish said mesa water
to all consumers at price and charge
herein set forth, as follows. towit: No.
to exceed the sum of 20 cents per 1000
gallons for all purposes other than
those herein and in the original fran
chise to W. j. Davis, enumerated, pro-
vided the minimum charge OF 90 cents
per month my be made TO all con-
sumers OF water having pipe ccnnec-
ton with the mains belonging to said
Water company and its
assigns"
Tenement House Rentals.
The testimony shows that the COM
pany maintains its accounts with tbs
owners or landlords OF the tenemeuts
occupied, and that the owners or land
lords pay for the water that IS used
by those occupying the tenements as
tenants, and that the tenants are not
known TO. and have no connection with
the company
The testimony also shows that for
years past this method has been fol-
lowed without objection upon the part
Of the company. or any question being
raised by the company until the receiv-
ryueusex.