The Leavenworth echo. [volume] (Leavenworth, Wash.) 1904-current, 1914-03-20
FACTS AND FIGURES
ABOUT LIGHTING RATES
Based on Just Valuation Rates Could Be
Reduced and Still Yield Hand
some Profit

II the Echo were to assert that Mr..
J. B. Adams had received the Tum-
water Light & Water Co. and all that
belongs to and goes with the property,
as a gift, and that he was given bonus
of $40, 100000 to take the gift over,
all but very few people in Leaven-
worth would be surprised; but that is
another story, the telling of which may
occupy time and space in the future,
perhaps.
IN THE MEANTIME Leaven-
worth people may find the following
story profitable and not uninteresting
reading:
On the first OF January, 1912, or
about that date, Mr.. F. S. Jacobsen
being then general manager OF the
Lamb Davis Lumber Co. and having
supervisory charge of the various in
dustries and interests of the big COM
pany, its mills, bank, store, the Tum-
water Light & Water Co., including
the telephone system. and who is cred
tied with being one of the most astute
and shrewdest business men in CEN
trail Washington, negotiated the sale OF
the Tumwater Light & Water Co.,
which included the telephone system.
to Mr.. J. B. Adams, for a considera-
ton of S45,000. OF this amount S.
900 was paid in cash, the unpaid bal
ance being represented by long time
notes, bearing per cent interest, run
ming twenty years. That $45, 900 was
a full, fair and just valuation may be
reasonably presumed from the fact that
Mr.. Jacobsen was the trusted and con-
fidential representative of the interests
of his employers, perfectly familiar with
the property, its cost and sale value.
We doubt not, if put on the witness
stand, he would testify that $45 900
was its reasonable value.
The Tumwater Light & Water Co.
was organized and incorporated by the
stockholders OF the Lamb-Davis Lum-
Der Co. At the time Of sale to Mr..
Adams the physical property of the
company consisted of the reservoir on
the hill west of town, the water dis
tribution system in the town OF Lea
yenworth and a certain water supply
from six inch iron main laid on the
Great Northern Railway Company's S
right OF way, taking water from the
Wenatchee River at the railway COM
pany's power dam, four miles up the
canyon and emptying into the reser-
voir above named. Also the electric
lighting system, telephone system, the
stock Of lighting, plumbing, and re-
pair material, fixtures and tools. The
Tumwater Light & Water Co. also had
the right to the use of a ESQ horse
power electric generating plant To-
Gated one and one-half miles up the
CANYON. So much for the physical
property and rights of the Tumwater
Light & Water Co. Now for some
illuminating facts and figures.
With the exception of three shares
of stock, Mr.. Adams was the sole
owner Of the Tumwater Light & Water
Ca. One share each was transferred
to two employees of the company who
became officers, and one share was
transferred to a prominent and wealthy
citizen of Leavenworth, who became a
director in the company, without the
payment of one cent therefor, but with
the understanding that the profits were
to be withheld until they amounted to
one thousand dollars, that being the
par value Of each share OF stock. On
or about the first day of November,
or % months after taking over the
company, Mr.. Adams informed the
director above referred to that his
stock had earned up to that time $40o,
and offered to give him $3.50, in cash
for his certificate Of stock, which was
accepted.
In May, 1918, the president OF the
Tumwater Light & Water Co. nego-
tiated the sale to the city OF Leaven-
worth of so much Of the physical prop
ertv of the company as consisted oi
tbe water distribution system lying and
being within the then corporate limits