The Richmond palladium and sun-telegram., 1915-06-25
ALLEGED Big
Icontinued From Page one.l

IONS bookkeeping system vas being
used in a "simplified FORM but this
explanation served only to add fuel
to the flames of Judge Duncan's un-
concealed anger.
II know what system you are using.
You use the Pratt system" snapped
Chairman Duncan. "Your plant is one
OF the two in the state which boldly
and brazenly defies the law on this
subject. Do you know, gentlemen,
that every day you continue to use
this bookkeeping system you are ex-
posing yourselves to possible fines and
Imprisonment"
1T seems to me-" he continued, IF
l were a city official l would not ex-
pose myself to possible action Of the
prosecutor having a grand jury return
an indictment against me-"
Bond Tries to Explain.
City Attorney Bond -hurriedly Ak
about the bookkeeping system employ
that Mr.. Pratt had not yet been paid
bookkeeping system now used and he
Adu duNl0Su lndl ~ LII LuCA pay AAOpC
be made to Pratt because the COM
mission had never approved Of his
system.
The unusual spectacle Of the chair
man Of the state utilities commission
scolding and threatening a group Of
city officials like they we're so many
naughty school boys was brought
about by the confession of Kleinknecht
that he knew nothing about the capital
account Of the plant. or whether such
an account was carried on the books.
Bonds Questions Mystery.
The purpose Of Bonds questions
asked of Kleinknecht yesterday after
noon are still a mystery today. 1t is
presumed that the purpose he had in
mind was to produce testimony to the
effect that the valuation established
for the city plant by the'state engi.
neers was excessive. If the desired
reduction in rates is to be obtained
it will be necessary to establish such
a contention very clearly because the
present valuation of plant is the
basis Of rate-making.
With the valuation established for
the city plant accepted by the CON-
mission there is very pronounced
probability that the desired reduction
would be an impossibility. Also the
confirmation Of the state engineers
valuation estimate might mean even a
slight increase in rates, an opinion ap-
parently held by the Light, Heat &
Power company officials, who, it will
be recalled. promptly accepted the en-
gineer's valuations for both the COM
panys and the city's plants.
Poor Witness.
Gluys while on the stand gave evil
dence in support of the theory that an
excessive appraisement had been made
of the city plant. The questions pro-
pounded to k.einknecht. on the other
hand, had little bearing on the issue
involved and what revelent questions
were asked Of his we're not answered
in a way would convince the COM
mission that the plant was of less
value than its engineers held it to be.
Kleinknecht stated that the profits
OF plant in 1913 amounted to $47,1S2.-
90. He said that the profits for the
year from March l. 1914 to March I,
1915. were $S1,359.52 including non
operating revenue.
He further stated that the net earn
ings Of the plant for the months of
March. April and May, this year.
totaled $17,649.10.
Where Profits Accrue.
Upon cross examination Kleinknecht
made the amazing statement that in
figuring the earnings of the plant no
allowance had been made for deprecia-
tion, for contingencies, for what would
have to be paid out in taxes If the
plant was privately owned, for insur-
ance and for services rendered the
plant by certain city officials. notably
the city attorney. the controller, the
mayor and the president Of the board
OF public works. He said they were
employed by the city on salary and
he saw no reason why the plant
should be charged with part of their
salaries even though a part of their
time was devoted to the service Of the
plant I'VE pay their travelling ex-
penses when they are out of the city
in the interest Of the plant" he said.
Thus was set forth the reason why
the municipal plant of the city of Rich
mond has been showing such large
I, profits" in recent years. 1t was as
interesting q revelation as the method
employed by Kleinknecht in figuring