Bisbee daily review. [volume] (Bisbee, Ariz.) 1901-1971, 1913-03-01
WATER HEARING
FINISHED HERE
Commission Now Open to
Briefs and Replies, Follow
ing Which II VIII Render
Decision.
YESTERDAYS RESULTS

7
ter of complaints against the Bisbee-
Naco water company TO the state cor
poration commission was completed
yesterday. The testimony is now to
be transcribed and copies furnished
the parties concerned. Thirty DAYS
will then be allowed in which to file
briefs, and ten days in which TO file
| replies. When the corporation com.
mission will render decision and
what that will be. may not be known
until after briefs and answers are
/ all in. An order for REIMBURSEMENT OF
rates and lowering of the minimum
charge. however, has been indicated
as very likely.
Most OF yesterday was occupied
with cross examination of the COM
pany's expert by Attorney General
Billiard. regarding valuation Of the
plant and the efficiency OF the var.
ious units. He differed materially IN
practically all points with the expert
for the state but under cross exam
nation yieldedd cOnside. ably. He
gave as the value OF the plant OF the
Bisbee-Naco Water company, the re-
production value Of the plant less
depreciation, with a going value Of
10 per cent and over head charges OF
20 per cent.
The expert argued that the theore-
teal pro rata depreciation. assuming
the unit to have definite period OF
life, could not be applied where the
plant was kept in an efficient opera
tive condition. He further argued
that there was an actual crude de-
probation, but he would not agree
as TO the Justice of the straight line
method of depreciation adopted 10y
the expert for the state. On cross
examination, however. Mr.. Kiersted
admitted that he had at previous
time used a theoretical depreciation
but had not applied IL TO this case.
He further admitted that there was
no objection TO using a theoretical |
depreciation in this case, but that re-
suits should to all purpose compute |
closely with the crude depreciation |
as made by him.
The next argument considered was I
a statement made by the engineers |
that the Bisbee-Naco Water company |
would soon be put TO large expense |
by the prospective building of con /
crete tank on the Labrador claim /
which Is to have a capacity of 2,O00f |
600 gallons of water The present /
capacity they gave evidence, would
supply Bisbee with water for only GO
hours, should state of affairs come
about that would suddenly put the
plant out OF commission. 10 was
TO have enough water stor-
ed to be able to supply the city for
It least seven days.
The new storage tank is TO be
placed on the Labrador claim. which
includes an area Of ground of from
iYe 10 ten acres This will include
al the approaches to the tank and
land surrounding it.
From this the company argued that
hey should be allowed a larger rate I
" return on account OF the heavy ex I
Dense entailed in construction and
lpkeep. :
For the purpose of rate making. !
he plant Of the Bisbee Naoo Water :
company should be regarded as I
lew plant and not on its deprecated 4
aluc, the company expert recon-
nended. He further stated that the =
Ompany SnOuA1 De dllONtu a AdiI re- n
urn on its money owing TO its loca- :
ion in a mining camp. which carried /
OF a great many haz
rds to investors. Nevertheless he
ave a going value to the plant Of 10
er cent Going value was an ele-
rent of the present value OF the
LIANT. the expert argued. Tn attor-
ey general tried to determine from
le witness whether this going value
as TO be used in ascertaining and
king rates. but he did not commit
imself although Attorney General
ullard cited several notable cases
herein such a valuation was ignor-
} in the making OF rates.
The expert further admitted that
le plant OF the Bisbee-Naco water
,mpany showed a very high leakage
hich tended to raise the operating
tpenses and so put an extra burden
J the consumer.
The Attorney General then tried =