Bisbee daily review., 1913-02-28
DRAWS TO CLOSE;
EXPERTS At ISSUE ON VALUES
Corporation Commission Heard Considerable Further
Evidence Yesterday from Individuals Bearing Upon
Negotiable Value Water Co. Stock and Manner of
Conduct of the Company Service.
PHOTOGRAPHS SHOWN TO SUSTAIN CHARGES

that they had been used on previous
I OCCASIONS in successful attempt TO
1 hOOdwink the company.
The next question Of the commits.
sion brought out the coupe of the
day, which was that the company
had lost $4,000 gallons of water
which was not accounted for. In.
quiries followed as to the efficiency
Of the plant which, according 10 The
testimony of the expert for the state
shows gradual depreciation since the
purchase by the company. II appears
that the tiusltering and tagging in
well No. I at Naco has deteriorated,
but this the company refused to con
slider
The object Of the cross examine
ton at this point was to show that
the wells did show depreciation and
should therefore be accounted for in
the auditors report The attorney
general also brought out that water
had been running from the Spray
tank of the Copper Queen company
into that OF the Water company and
vice versa without meters having
been placed on the tanks 10 detsS-
mine how many gallons OF water had
passed from one tank TO the other
The superintendent denied this ale
cation. saying that the pipes leading
from one tank TO the other we're Sc
eurely plugged and had always been
so according TO his knowledge. Asked
with what they were plugged. he
answered. sacking
f. To a Cd
examination and on actual proof of
two photographs that the saeking had
probably become rotten as il had
been there for many years without
having been replaced.
w. II. Fitzgerald. cashier and book
keeper for the company, was then
called TO testify as TO the complaints
OF consumers before the commission.
Mr.. Fitzgerald's testimony was in a
great part the same as that Of MIR.
Jacquemia. Recess was then taken
until l45.
The afternoon was spent in col
Iecting testimony from the expert Of
the company w Kiersted Of Kansas
City. an engineer Of note and consid-
cred to be an authority on water
sted's figures differed somewhat from
those OF Mr.. Sloan. the state expert.
He put a valuation of about $3.50
600 on the plant of the Water com
pany. This included the reproduc-
tom cost of the plant which both
the experts had agreed upon at about
S4OO.O the going value, and 81 per
cent over head charges, where the
state expert allowed but Is. How
ever. Of this amount, a depreciation
of aboUt 16 % per cent was allowed,
which brought the price Of the plant
down TO S5O9,OO0 which the company
claim is the present value of their
holdings. They will attempt TO have
the rates adjusted so as TO bring a
reasonable income on this amount
So far, the Water company has earn
ed but a little over IL per cent on
this valuation.
The whole question now lies inI
whether the commission will take the
figures of Expert Kiersted and allow
the Water company a return on its
galuation Of sos. 900 or take the tig-
ures OF the state expert and allow
a return Of about 1856 600, The eX
pert for the state allowed a theoreti
cal depreciation OF about per cent
per annum, or about $4,000 less
than the book value Of the plant, but
the expert for the company argued
that the plant could not be given 3
definite life, as had been attempted
by Mr.. Sloan. and had a gradual do
probation every year, as new parts
we're constantly added and the plant
kept in excellent working condition,
However he allowed a depreciation
Of about $4,000.