The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1915-05-20

ing recent years regarding niSH
finance" and ''frenzied finance" bur 1t
always had a far away sound, suggest
ing wall street or other mart of the
money changers, Standard Oil, New
Haven, Amalgamated and the like, In
which stock manipulation, stock irri-
CATION and bond issues We're strongly
commingled as a means of paying large
and unearned salaries and dividends
to the few in the preferred class. And
as we read the details of the system
by which the public was made to pay
tribute to insure return on invest
ments that never were made, little did
the untutored denzens of this little
city dream that they, too, were the
victims of similar system that levied
tribute each month in the form of bills
for electric light and power Possibly
they have not awolsa to the full reali-
cation of the system yet but certainly
every one who followed the evidence
brought out at the recent hearing be-
fore the utilities commission In the
case of the city of Wallace against the
Northwest Light & Water company
is convinced that the handling of the
affairs of the company entities the re-
sponsibe head to high finance
rating.
The Hearing.
The case came on for hearing last
Friday morning, all members or the
utilities commission, Messrs. Ram
stedt, Graham and Freehafer, being
present, The city was represented by
city Attorney ]. f. clyde and John
Gray. Walter H. Hanson also appear
ed as attorney for the Sunset Brewing
company. J. B. Ingersoll, an electrical
engineer of Spokane, also appeared on
behalf of the city.
The Northwest Light & Water COM
pany.was represented by A. H. Feath-
erstone, of this CITY, and Stephen Fl
Cary of Seattle; also by Henry i.
Gray, an electrical engineer of Seatt:c
The point to be determined, and
around which the entire two days
proceedings revolved, was the question
of valuation of the company's properly
which must form the basis for fixing
the rates for light and power and in
getting at this vital point the entire
history of the company was brought
out, it's organization, capitalization, IN
debtedness, method Of accounting, fix
ed salaries and profits.
Value of Property
Mr.. Ingersoll the citys engineer
placed the value of the companys
plant and property at $122OO0. He
eliminated the steam plant and water
power from his estimate for the rea-
son that the lines Of the Washington
Water Power company provide avail
able electric current without the in
vestment represented by either OF
them.
Mr.. GRAY, engineer for the company,
estimated the value Of the company's
plant and property at 100000, which
includes the steam plant the water
mower valued at $4,000 and $4,000
for good will, the latter Of which was
ruled out by the commission. Mr
GRAY had very complete report pre-
nared on the condition and affairs OF
the company. which he elaborated
with much emphasis He was allowed
almost free hand in giving his dlrec'
testimony, his attorney interposing re"
questions and the opposing counse
7 Whe1
ATTORNEY Gray began the cross eXaml'
nation of Engineer Gray that the IN
tense interest in the proceedings de'
yeloped. and which resulted in reveal
q, ing the inner workings of the North
west Light & Water company, Th'
cross ss-examination of Mr.. Smith, sec
retary of the company; Mr. Refnhart
the auditor, and Mr.. McKissick tn
manager, also added considerable Il
the fund of valuable information whicl
the commission will have for eonsid
Grafton.
Strahorn Buys Plant.
II was in the fall of 1901 that ROD
ert r. Strahorn, of Spokane, who ha
since become famous as a railroa
builder, purchased the local light an
water company, known at that tim
as the Wallace Electric, Manuractur
ing & Water company. The purchas
price was $125.O0O Of which $63oo
was paid in cash and $4,000 In bond
of the company. These bonds wer
redeemable in two years at 80 per Ger
Of their face value. They were
redeemed within that period, whic
reduced the purchase price OF VI
plant to $11S,OOO in round figures
It developed in the course OF tf
hearing that bonds of the compan
we're actually issued to the amount
s125.OOO. the other half of the issue pt
ing sold to the public. While NJ
brought out, the inference was Una
stock in the company was offered as
bonus u induce purchase of the bond