Arizona republican., 1915-12-08

cured over one thousand names of l citizens signed to petition to protest | to city commission. Please advise of l status of situation there NJ. T. Phelps, president, F. H. Redewin and w. C. Gillespie, committee" It is thought that the chief fight | of the Y. M. B. A. is not for a city plant but for cut in the rates to private consumers. The association has gathered a tremendous amount of data, to show that the rate of cents | for power and 10 cents for light. is | excessive, as compared with many other cities, operating under exactly similar conditions.
 In addition to it's investigation of rates, the association has secured the following expression from Chairman F. A. Jones of the corporation com mission:
 Phoenix, December :, 1915. Dr. F. H. Redewill
 221 Noll Building,
 Phoenix, Arizona
 Dear-Sir: Your recent request for
 an expression of opinion to the City Commission relating to the matter of
 proposed municipal lighting plant My position in this connection has | been pretty well defined during the | past ten years in Phoenix It will be l recalled that the citizens voted on | the question of a municipal lighting | plant several years ago and it was | carried overwhelmingly in the face of | a vigorous campaign by the local 1 company against it. This was de- | feated for the reason that Arizona at 1 that time was a territory and could not issue bonds without the consent | of congress. I have always felt that | the house committee on territorities | assumed an indefensible position in | denying to the people of Phoenix what they wanted, and in my opinion what they were entitled to have. Generally speaking, I favor city | ownership of water and lighting utili- I ties. Under the conditions that exist in Phoenix, it has always seemed to | me that a municipally owned cleo l tric distributing system was wholly justified. The people of the valley produce and own the electric power. | I have never heard a good reason | stated why this should pass through | the hands of middlemen in reaching | the consumer. I have believed, and | still believe, that the publicly owned power of the valley could and should l be made a great asset in the up- | building of the valley and the towns | in the valley by supplying the indus l tries and consumers generally power | at a, minimum price. To my personal knowledge, industries-that is man ufacturing institutions-have been prevented from locating in Phoenix because of the power situation. On account of our climatic condition cheaper power is of great value to the residents in enabling them to have fans and cooling devices for summer and for heating in the win ter
 Municipalities can borrow money
 at from 319 to per cent public utilities are allowed to earn from &
 to 12 per cent. So, it is obvious that a publicly owned plant ought to sup ply electricity at a lesser price than could a privately owned plant I have heretofore officially eX i pressed my disapproval of the valua ton and fipancial affairs of the local | lighting companies. I think the rec 1 ords will bear me out in the state | ment that the value upon which they are now permitted to earn a rate of return is very greatly in excess of l the cost of duplicating their property. l The company is amortizing bond dis counts and obsolete plants and, under | a valuation that 1 have always felt was incorrest, and bonded for a greater amount than the physical value of their property.
 Under these conditions, it is readily
 seen that in order to earn it's bond l interest and take care of the amorti- | zation of items that would not enter l into a municipally owned plant and | to of of 10 | per cent, that rates may be higher | than rates that could be made by i municipally owned plant properly | capitalized
 l This briefly stated, is my position
 with respect to the local electric sit | uation, given to--you as property 1 owner and citizen of the town.
 Very truly yours,
 F. A. JONES'