Tonopah daily bonanza. [volume] (Tonopah, Nev.) 1906-1929, 1912-11-27
PUBLIC UTILITY COMMISSION UNABLE TO REDUCE RATES
STATE BOARD ADVISES CREATION
SANITARY DISTRICT AS ONLY WAY
TO SECURE REDUCTION OF RATES

,broneh which a reduction IN sewer
sa,ee could be obtained would be
,hrough the establishment OF a sani-
,arv district IN this city by the board
- county commissioners and com
Railing all property owners to con
nact their houses to the sewer lat
arals thus increasing the number OF
connections, is the finding OF the
nuhIie service commission. A copy
n the decision was received today
hy the Bonanza and is printed in full
The commission declares that the
sewer company had made a reduction
in prices with the understanding that
additional patrons were 70 be pro-
vided. but when the increase in busi-
ness failed TO materialize, the old
rate was restored
The report in full follows:
Office OF the Public Service Commits
sion Of Nevada
Carson City. New, Nov p. 1912.
To the Board OF County Commission
ers Of Nye County. Nevada, and
to the People OF the Town Of To
nopah. Nevada.
Pursuant to the hearing and in
yestigation held by the public service
commission OF Nevada upon the com
plaint of the Tonopah Business Mems
association VS. the Tonopah Sewer
and Drainage company at Tonopah.
Nevada, October /. 1912, the commits
sion desires TO submit the following
tentative report and recommendation
to the board OF county commissioners
and the people OF Tonopah.
The Tonopah Sewer and Drainage
company Is an Incorporated com
pany operating under and by right
Of a franchise granted by the legis-
lature OF Nevada, approved March
10. 1911, to supply and furnish to
the town OF Tonopah. sewerage serv-
Ice for a period Of so years
The capital stock OF the company
amounts TO 100000 shares. par value
81 per share. and which, at the pres.
ent time, Is all outstanding. or this
amount, l01 600 shares are owned and
controlled by Mr. j. O Crumley of
Tonopah. Nevada. and thereby he and
his associates exercise control of the
company.
The outstanding bonded indebted
ness Of the company consists OF S23,-
500 worth OF bonds. drawing 6 per
cent annual interest
The system consists Of 1918 feet
Of l0-inch sewer pipe, 1907 feet of
6-lnch sewer pipe and 35,0Sl feet OF
4-inch sewer pipe. serving practically
all OF the main thoroughfares OF the
town OF Tonopah There are mum
Der Of streets which are yet unserv
ed by sewer mains and II was vari
ously estimated at the hearing that
the completion OF these laterals, In
cluding the laying of the pipes up e
the property line OF all residences
would cost from $4,000 TO $4,000 i
was impossible to ascertain from the
data available how much money hac
originally been put into the system
II appeared from the testimony ad
duced that Mr. ]. C. Crumley, II
gaining the stock control of the com
pany. had made an expenditure ap
proxmating $30.500 and this, there
fore. coupled with the bonded in
debtedness OF S23.500 outstanding
represents an active investment Q
$4,000, which Is apparent at thi
time.
The figures with reference to IN
cost Of reproducing the property, a
placed before the commission by tn
company, were rather indefinite-aI
proximating $4,000. Upon comprt
hensive check and analysis of tn
cost OF reproducing the plant, mad
BY Mr. w. X Freudenberger, tn
commissions engineer. since the clos
OF the hearing, the conclusion ha
been reached that the same can b
reproduced for $4,000.
was shown at the hearing tbs
there was approximately 1S0 sewt
connections In the town of Tonopa
and that the annual revenue woul
amount to $SSS2. The interest char
es on bonds amount to $1410 per a
mum and the operating expenses al
taxes were found to amount to $512'
y, or a total of $7136.Si for opera
ing expenses, taxes and interest. TT
net income remaining, therefore,
thls basis, would amount TO $1745.l
The situation was found TO amou
to this:
That while the charges for sew
service are perhaps the highest to
FOUND anywhere in the country, ne
ertheless, the conditions were su
mat Il was very quickly seen tn
ntue, II anything, could be done
.ne way of reducing rates and st
Enable the company TO meet its
legations.
Inc commission found among 9th
.hings that very serious considerati
Ta su Deen given by the people
ionopah to the matter of voting up
proposition to take the sewer CO
pany over, upon the basis of so
nominal consideration to the pres,
,Swners, and to assume the bono
smueOtedness. and thereafter. oper
sle plant by the municipality as
aVne In practically all other citi
Atter carafui o0uatda~atfou thOaa