Pine Bluff daily graphic., 1914-03-14
HANDS IN DECISION OVER WATER RATES Standing Master Whipple Turns Matter Over to
 Judge Trieber.
LOWER RATES BARRED
He Sides, However, On Minimum
 Charges and as to Meters-May Go to U. $. Supreme Court.

According to the decision which has been handed down by Standing Mas ter Durand Whipple on the Pine Bluff water rate case, the decision is against lower rates being plaeed in effect, but the decision is favorable to the city on the standpoint of met CTS and minimum charges. The matter is now to go to Judge Jacob Trieber for final decision, to- gether with the consideration of a number of exceptions which were made while the hearing was being conducted in Pine Bluff.
 At the hearing in this city, the case for the city was conducted by City At torney w. B. Alexander and for the Pine Bluff Company by Attorney F. G. Bridges.
 While, of course, there cannot be known any definite action until the case has been passed upon by Judge Trieber, it is thought that the case may be taken to the United States Supreme Court for final decision. The question of the physical valuation of property is involved. There has never as yet been before the highest tribunal the question of the manner in which the physical valuation of plants is to be decided hence this | makes a point.
 The text of the finding presented to Judge Trieber by Standing Master Whipple is as follows: The Pine Bluff Company is operat- ing under a 30-year charter, granted January IT, 1887.
 In 1907 the charter was amended to cover the specific flat and meter rates to be charged thereafter.
 "On May ), 1913, the City Council of Pine Bluff passed an ordinance re- | ducing the meter rates. It also pro- vided that the minimum rate allowed for each house should not be charged where there was more than one house on the same connection, but that one minimum charge for all the houses should be collectible. It also gave to domestic consumers in Pine Bluff the right to change back and forth from flat to meter rates, and vice versa. monthly at their option.
 "The Pine Bluff Company filed a bill in the United States Court at Lit tie Rock praying for an injunction against the mayor, chief of police and city attorney, forbidding them to en- force any part of the ordinance.
 "The case was referred by the court to the standing master, Durand Whip ple for his findings of fact and con- clusions of law.
 "The evidence was taken before the standing master and consumed seyer- al weeks. During that time 21 deposi- tions, most of them from expert en- gineers and accountants, were taken, and 46 exhibits, some of them big vol umes gilled with intricate figures, were filed.
 "The master found that there were four main findings of fact necessary to be made.
 The fair value of the water
 plant at the date of the passage of the ordinance complained of. What percentage to be allowed the water company on that value.
 What net returns the company
 had been earning under the old rates.
 What effect the proposed reduc-
 tion in water rates would have on
 the earnings of the plant.
 The questions involved iA the ind ings of fact were further sub-divided into.
 A. Upon what basis shall the fair value of the property be esti- mated.
 (a) Reproduction less deprecla- tion, alone.
 (b) Actual cost, less deprecla-
 tion, alone; or
 Co A combination of both.
 The findings on this point were 1 that prior to the reconstruction of the plant during 1907, the evidence show ed no basis except the cost of repro duction, less depreciation, and that method was chosen to ascertain the value of that part of the plant;
 For the work since 1907 the books showed the actual cost and this, duly depreciated, was chosen as the basis for the valuation of the new part oi the plant. All was Appreciated. under straight t-line depreciation to the date