The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1915-05-20
HEARING BEFORE UTILITIES COMMISSION
D|sCLOSES HIGH FINANCE IN COMPANY
SOME OF THE MORE CONSPICUOUS AND SIGNIFICANT FACTS
gRoNcHT OUT BY THE ATTORNEYS FOR THE ciTY-PRoF-
TABLE BOND DEAL-sALARiEs WITHOUT SERVICE

/
bonds held by the original owners, but
ALSO to return the money represented
i by the first payment.
j Northwest Company Organized.
quired the light plant at Yakima, and
the one at Sumpter, Ore. In 1908 he
organized the Northwest Light & Wat
er company, which included the two
plants just named and the Wallace
plant. The company was capitalized
for $1,00O,000 divided into an equal
number of shares. of which 100000
were issued. In 1911 the Yakima plant
was sold for 100000, leaving the Wal
lace and Sumpter plants the only hold
ings of the Northwest Light & Water
company. The Yakima plant must
have been a profit earning adjunct,
judged by the price it brought, yet its
illumination seems to have increased
the earnings of the company through
the two plants retained.
| Increase Salaries.
! This is Indicated by the increase of
salaries that followed the sale of the
! Yakima plant The sale of the Yak
| ina plant would naturally be expected
to relieve the general officers of the
company of considerable responsible
| ity, and to those not versed in high
! finance reduction of salaries would
be expected Before the sale of the
Yakima plant Mr., Strahorn, president
| Of the Northwest Light & Water COM
pany. received a salary of 5000 per
lmonth, and the secretary of the COM
Many, Mr.. Smith, 5000 per month. Aft
er the sale the salary of the president
was advanced to $500 per month anr
that of the secretary to $275 per month.
Mr. McKissick, the local manager, re-
ceived salary of 5000 per month, pu,
whether this is an increase over his
former salary is not known. The pre-
sumption is that these salaries of the
general officers were maintained IN
order to make showing of expense in
comparison with the large earning,
Of the company, for the evidence In the
hearing absolutely failed to disclose
any service rendered commensurate
with the salaries.
Smith Signed the Dividend Checks.
The most persistent cross -exam1na.
ton by Attorney Gray failed to develoI
any real work done by Mr.. Strahorn a!
president of the company or by MI
ISmith as secretary to entitle them t.
their salaries. He was unable to Civ,
any specific duties performed by tn,
president, nor was he any more sue,
Icessful in his own case except t.
Iclaim that he did the work that usu
aly devolved upon a secretary, HI
finally smilingly admitted under pres
Isure from Mr. Gray, that about tn,
Ionly real work he did was to sign tn,
monthly salary and dividend checks.
The books of the company showed
THAT of the company's property tn
wallace plant represented 81 per cen
and the Sumpter 8 per cent, and tha
the Wallace plant, after paying fame.
salaries and all legitimate expense o
operation, in the year 1914 paid II
dividends in round figures 100000.
The Company's Water Rights.
Mr.. Gray the expert engineer for tn
company, attached great importance t
the companys water rights, placing
the value of the power at $4,000. Il
order to emphasize what he regarde
a conservative estimate, he had muc
to say of the value of clean water t
mining companies for milling purposes
He spoke particularly of the value @
this water to the Tamaraek- -Custe
company which he freely stated woul
soon have to erect a new mill mainl
for the purpose of getting clean waite
which could not be had on Nine Mill
!, and that company would therefor
have to come down here or at som
point on the main stream. He CAV
J the percentage of increase in miners
recovery where clean water was USE
land finally figured out that the Watt
rights of the Northwest Light & Watt
= lcompany would be worth 100000 to II
s ,Tamarack- Custer company. He didn
d say that he was authorized to pay tn;
a amount. nor did he quote the minir
g company as authority for this valus
: tion. His remarks on this phase or II
q uuestion, however, suggested to tho'
N who were familiar with the intere
Is manifested by the Days in the recei
e city election that herein might be e.
IT posed the ever present "nigger in Il
II woodpile" with Wourms asking f
n gas franchise, and with the Wasl
Ie ington Water Power company or q
Montana Power company prepared
le furnish juice for less than 1t can
" produced by the present plant, II
Of intimated that the company mig
e turn its water rights over to the Tar
Dt arack, for they are too valuable for t
AZ purpose now used.
al Cost Per Horsepower.
S. In the course Of the cross examin