The copper era and Morenci leader., 1913-04-18
WATER RATES AT M0RENC| ID BE
 REDUCED
Are Already Lower There Than They
 Are Here in Phoenix.

: Upon the return of the members of
 the Arizona Corporation Commission to Phoenix from visit to Clifton and Morenci, the following interview appeared in the Phoenix Gazette:
 Material reductions in the water rates charged at Morenci, and i'm provements in the Clifton system, will i be required by an order which will be issued within the next few days by the corporation commission.
 After a hearing lasting three days, the state and the Morenci Water con- pany reached an agreement regarding the physical valuation of that plant and system. They also agreed on q depreciation rate of 3 per cent. and the commissions representatives agreed that the company should be permitted to earn 10 per cent on the physical valuation of the property. The Morenti company charged 8 flat rate of $2 for a household The commission will order this reduced to S1.25 and other rates will be lowered accordingly.
 Attorney General George Purdy Bull lard, who conducted the case for the state, regards the showing made in Morenci as ample evidence that the rate in Phoenix is far too high. Here the rate for a residence, including bath, is about S2.75. General Bullard was surprised when he learned that in the mining capap of Morenci the company could make a fair profit while charging much less than is charged for service from this city's municipality owned pIant
 A verbatim report of the evidence submitted to the corporation commis- sion at the hearing was taken by J. Morris Philipowski, the commissions official reporter Important witnesses for the state were Engineers Charles F. Sloan and J. H. Thompson, of San | francisco, and Chris Lee, assistant to State Examiner w. H. Plunkett. Sloan and Thompson were retained by the commission to make a physical valuation of the systems at Morenci and Clifton. Lee assisted them as an expert accountant, and Ben Fergu- son, an attache of the commission, helped them in taking inventories. All to Phoenix last night
 The Morenci company did not try to claim that it's franchise was an asset which should be counted in with the physical valuation of the system. I. | did claim, however, that it's water 1 rights were worth $115,OOO Attorney | General Bullard conceded this tenta- lively, but stated that in that case here would have to be a readjusr- nent of certain contracts between the water corporation and the mining companies. Immediately the company decided to withdraw the claim, for the ,ontracts are quite valuable This agreement had the effect of hastening business to marked degree.
 At first the company claimed that he system was worth s715,000, but inally agreed to the commissions fig Ire of $524,000. Engineers Sloan and thompson had the figures to prove / bsoiutely that this valuation was fight, and all efforts to refute them yere unavailing.
 The companys attorneys and off . CTS seemed quite well satisfied, how : yer, with the allowance of 8 per cent pr the depreciation fund and 10 per ent. for earnings. The states rep | admitted that larger earn lgs should be allowed in a mining amp than elsewhere, because of the ' ltra hazardous nature of the busi- ess. In Clifton the commission will cut l. le rates only slightly They are gher than in Morenci, but conditions U e different, and the complaint was ~ ainly in regard to the service. Sev- U al new mains will be ordered laid IL Id a new storage tank erected. GU Engineers Sloan and Thompson are u day working on the Tucson Gas !" ectric Light & Power company case |" ard months ago. A decision in that SC will be issued within two or of rec days. -,
 T Deputy Sheriff Weds-At the home G1