The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1914-04-17

Mr.. Jackson's appraisal which we
exclude from the present value of
the plant, namely: One holder
which the evidence shows rs not In
use and valued at $4,000. Then he
has the item OF real estate. $1,000.
The evidence shows that this real
estate consists OF seven lots only
FIVE of which are used and needed
for this gas plant. The two lots
not needed. we exclude, thus leaving
the real estate at $4,000. As to
the value of the real estate, see
testimony OF Mr.. Zuel and Mr. Jen-
sen and also Consumers Power COM
pany exhibits III and W
"Mr. jackson has also an item OF
81, 1889 .S6 for paving. And this item
we exclude from the present value
of the plant On the other hand,
Mr.. Jackson has added nothing for
going value. There is no doubt
some difference between dead
plant not In operation and a live
plant In operation. like this gas
plant. This is what is known as
going value OF a public utilities
property and should, in our opinion.
be considered in fixing its value.
Just how much should be added to
the tangible physical value of the
plant for this purpose. we have no
well established rule TO be guided
by. We ARBITRARILY allow $4,000 for
going value.
Fixed Value Of Plant al st7e,ef0 81.
"Mr. Jackson has fixed the present
value OF this gas property at s179,-
9f0.9l Deducting from this amount
$4,000 for excess real estate, $4,000
for the holder not I'm use and S12,-
S32 Sc for paving and, on the other
hand, adding $4,000 for going value,
we get the sum of s169,57S. 0s. Or
I'm round numbers $4,000 90 which
we fix as the present value of the
gas plant of the Consumers Power
company In the City OF Mankato
as a going concern.
I'VE think that I'VE are not far
from being right In this valuation.
There is I'm evidence exhibits e.
n c. and II being statements
made by the local manager Of the
Consumers Power company to the
assessor OF the city of the value of
the plant In 1910, 1911, 1912 and
1913. In the year 1913, the total
value placed upon this property for
the purpose OF taxation is $751;
290 90. This is supposed to be 40
per cent OF its actual value. The
actual value OF this property in the
year 1918, according TO its taxation,
was, therefore s12S,225. 90 or s41.-
IT'S. 90 less than the value we have
put upon It. We perceive some in
consistency in valuing this property
for taxation at only s12S,225 90 and
for rate making purposes in the sum
of s320,417. 40. Both are the COM
pany's figures; so we are not re-
sponsible for the figures.
The Gas Consumed.
From Consumers Power COM
pany exhibit "IV," there appears to
have been gas consumed IN the city
OF Mankato during the past -four
years as follows:
1910 ...... ..4O, Az, 03O 90 cubic feet
1911 ...... "a, 459,010. 90 cubic feet
1912 ...... 1895. 600 90 cubic feet
1913 49,. =. .35, $50 900 90 cubic feet
Total Gas Consumption.
which makes total gas con.
sumption of 144,S63, $40. 90 cubic feet
FOR the four years. At the prevail.
ing minimum price of $1.25 per one
thousand cubic feet, the above
amount Of gas consumed should have
produced a gross revenue of $751;.
079 IS, but the company says 1t re-
ceived only si73,57i. "a. Why this
shrinkage in the apparent gross in
come, we are unable to account for
unless the company has sold to t.
self or to certain customers consid.
cradle quantities Of gas at a price
below $1.25 per one thousand cubic
feet. Exhibit X and some portions
of the evidence scent to bear out
this supposition.
However. We adopt s173,574 "a.
the company's own statement, as it's
gross earnings for the four years II
has operated this gas liant In the
city of Mankato.
The Operating Expenses.
The growth OF the operating cost
of this gas plant, according to fig
ures given by the company, rs rather
astounding, as the following tables
will show. giving the amount Of gas
consumed, the gross income there
from, and the operating expenses for
each year: ~,
~
Year. Gas Consumed.
| 1910 40412O30 90 cubic feet ~