The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1914-1938, 1914-06-18
Hearing on Pacific Power and Light
Company's Valuations is Begun
in North Yakima
FIGURES OF EXPERTS DIFFER
Can Valuation Be Placed ON Water Power Sites,
Is Disputed Point Around Which Legal
Battle is Conferred

The legal battle, the outcome
of which is to determine whether
or not the Pacific Power & Light,
company is to be permitted to
continue its present charges for
light and power in the state of
Washington, was started in
North Yakima Monday morning
when hearing before the state
public service commission was
begun to fix the valuations of the
company's properties.
The hearing is the most i'm
portant one ever brought before
the commission and the entire
week will undoubtedly be given
to the taking of testimony. All
three members of the commission
are in attendance with Judge M.
M. Goldman presiding. Repre-
sented by counsel at the hearing
are people and communities of
the three states of Washington,
Oregon and Idaho, for while the
testimony will be confined as
strictly as possible to Washing
ton, the lines of the company ex-
tend into those other states and
the interests in some instances
are inseparably connected.
Attorney Harry l.. Wilson,
chief counsel for the complain
ants, represents IL cities and
towns in the state. Associated
with him are City Attorney Shu-
mate, of North Yakima, City At
torney Fristoe, of Prosser, City
Attorney Rysek, of Pasco, and
M. M. Moulton, of this city, who
represents the power users of
the White Bluffs district. City
Attorney Holcomb of this city,
and City Attorney E. v. Kuyken-
dali, of Pomeroy, are also in at
tendance. The power company's
interests are being looked after
by Chief Counsel w. w. Cotton,
assisted by a score of attorneys,
engineers and officials of the
company.
1t developed early in the hear
ing that the chief point around
which the fight will revolve, is
whether or not the company shall
be allowed to place a valuation
upon its water power rights.
w. j. Hagenah. of Chicago, the
company's engineering expert,
values the sites at $500, 900 while
F. S. Burroughs, the states chief
engineer maintains that the wa
ter power rights of the company
represent no investment and
therefore cannot justly carry any
valuation. The difference in the
valuations placed on the proper
ties by these two experts runs
into the millions of dollars.
An indication of the wide di-
vergence in valuation figures may
be seen from few a extracts from
the testimony of Mr.. Burroughs.
He gives the amount at which
the electric properties in this
state are carried on the books of
the company at $40, $50, 459. 10;
the amount paid for the property
as SIS, 563, 450. 10, the amount act
ualIy invested in physical property
at S4, 314, 333. Is and the cost Of
reproducing the property in its
present physical condition as $3.-
GIG. %.
The P. P. & L. Co. claims the.
deprecated value of the property
at this time is 81, 233, ,844, to
which they would add $500, 600
as valuation Of water power, an
item which Engineer Burroughs
rejects entirely.
Monday and Tuesday were de-
voted to the testimony and cross
examination of Mr.. Burroughs
and at yesterdays adjournment
Mr.. Hagenah was still on the
stand.