The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1914-03-13

into them, computed the amount of
excavation necessary, the masonry
required, the brick work, the roofs,
floors, and all other portions of the
structures. He obtained prices cur
rent in Mankato for labor and ma.
terial from the leading contractor
in this city. He accurately ascer-
tanned in detail what II would In
fact cost to reconstruct these build
ings Just as they are. Such method
Is certainly more accurate and vastly
superior to the arbitrary standard
of s cents per cubic foot adopted
by Mr.. Jackson, merely on the state
inent of firm of architects In St
Paul. The adoption of such an ar.
bitrary method as this where he
could, with equal propriety, adopt a
measure of six cents per cubic foot
or ten cents per cubic foot, Is GER
tainly not an appraisal of the build.
ings In question. The only authority
which Mr.. Jackson advances Is that
this architect in 81. Paul gave this
figure, and that this architect as
sisted in some way in the construc-
tion of the normal school at Man
kato. He refers, evidently. to the
additions to the normal school made
some twenty years ago. These addi-
lions were very substantial. practi-
oally tripling In size the building.
The cost according to Mr.. Jackson
was 9ls cents per cubic foot. Such
procedure on Mr.. Jackson's part does
not amount to appraising the prop
erty In question. Where the build.
ings are In sight, and can. be In
spected and examined thoroughly, It
is not necessary to adopt any, such
arbitrary standard as so much per
cubic foot. .'.
What Company Is Entitled To.
The figures from Mr.: Braun's re-
port show that the present value of
the gas plant of the Consumers
Power company, leaving aside the
item of discarded property (which
we do not claim should be included)
is the sum of s314,O72. SO.
upon this sum the company is
entitled to have interest computed,
in determining what is proper sum
for 10 to receive as dividends upon
its gas properties at Mankato. ..
THE net earnings OF the company
for the four year period were:
1910 ............... $50, 702 95
1911 Observation-Disclosures. 1924. 10
1912 ...,yr.. 14,43S. SO
1913 -. .I.......,....,... 14,721 ~
The abore sums representing the
net earnings for the past four years
are shown by the detailed statement
of receipts and expenditures cover.
ing this period. This statement has
been subjected to scrutiny by the
city experts for, months past. The
privilege has been, at all times,
open to them to seek further or
more detailed information from the
books of the company. The state
ment correctly shows all receipts
and disbursements, and no effort
has been made to impeach the cor
rectness of these figures.
Criticisms Hinted At.
Certain general criticisms have
been limited at by counsel, such as
the matter of gas used by the cleo
trio department and coke by the
company. The total amount of coke
used by the company is deducted
from operating expenses and like
wise all tar produced. All gas used
by the electric department Is cred
tied, and deducted from operating
expenses. Where the gas Is used
direct from the holder II Is properly
valued at holder value and not with
distribution costs attached.
The coke is charged upon each
side of the ledger at the same figure
and hence 1t is immaterial what its
value was.
Criticisms have been made con-
corning the higher operating ex-
peuses luz 1910, as cOiupdTeu 10
1910, but an investigation of the
itemized statement shows numerous
items where there has been "A nee
essary increase in expenses. In fact,
the tendency In all businesses dur
ing these years has been towards
such an increase. No item has been
singled out or referred to showing.
any improper expense.
Company Made improvements.
ut is quite apparent from the
record that when the Consumers
Power company took over this prop
erty, II proceeded at once to make
marked and substantial improve
ments to the entire plant, including
not only the installation Of perma-
nent improvements chargeable TO
capital, such as a new 10000 foot
holder. but also innumerable repairs
and betterments,, large portion of
which was chargeable to operating
expenses. The plant has been vastly
improved and kept in better repair.
all Of which means an increase, en-.
tirely legitimate. in operating ex-
penses.
I'VE do not deem IL necessary to