Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1918-07-11
H-.' ~
CONFERENCE ON
POWERCOMPANY
RATES IS HELD.
City Must Pay Expenses Of
Expert Engineer and
Accountant.
PLANTS Z IS
OVER ONE MILLION
Situation in Grand Forks and
Elsewhere may Necessi-
tate New Legislation.

At the request Of the railroad COM
misstoners there was a conference
held this morning at the ONCE Of the
city Auditor w. H. Alexander, attend
ed by Mayor H. u. Wheeler, Attorney
General VIM. LANCER. Tax Commits
sioner F. p. Packard. Railroad Com
missioner M. p. johnson, City At
torney Geo. A. Bangs, and City Aud
itor Alexander.
At the conference 1t developed that
the railroad commissioners were
without any funds to hold the hear
ing scheduled to. be held in this city
beginning July 10 for the purpose for
reviewing and fixing the rates Of the
Red River Power Co., for gas, and
electricity. :.
The situation, a. put up to the city
was, that II the city desired the in
v~estigation and hearing to be had it
must pay the expenses which include
the compensation to Messrs Hagenah
and Erickson, of Chicago. the
gtneers who have already made a VAL
uatton Of the physical property Of the
Power Co., at Grand Forks but who
must be present at the hearing to
mated that the engineers must be
present from three days to a week
at a compensation of $50 per day
and expenses.
Accountant Needed.
In addition there must be an ac-
tcountant employed to examine the
books of the company and it is est
mated this expense will aggregate
from $3.50 to $3.50, and such account
ant must also be present to testify in
creasing the expense probably $3.50,
or q total of about $500.
h city must also defray any other
expenses connected with the hearing
outside Of the personal expenses Of
the railroad commissioners and the
reporter. r.
In case Of an appeal to the court
the expenses Of the trial must also
be paid by the city unless the next
session of the legislature remedies the
present condition.
Devils Lake and Minot are in sub.
stantially the same condition as
Grand Forks: last fall the various
plants in these different cities were
valued by the same Chicago engineer
ing firm OIL Hagenah & Erickson;
rate hearings are now contemplated
In each of these cities and by ar
ranging the dates to succeed each
there will be avoided any duplication
Of railroad and other expenses in the
attendance of the engineees and ac-
countant; each of these cities are also
confronted with the same condition as
Is Grand Forks in regard to the ex-
animation of the books Of the utility
company and the Idea is to have the
same engineering firm make use of its
accounting department in each of
these cities.
May Result in Legislation.
The expense Of these hearings is a
legitimate charge against the state
and at the conference this morning
It was suggested that quite probably
the legislature at its next session
might refund the expenses incurred
by these cities. In other states such
expense is uniformly borne by the
state in the first instance. but is not
infrequently finally paid by the Util-
ity as an operating expense and dis
tributed over a period Of years. being
allowed by the utility commission as
The attorney general will act as the
counsel for the railroad commission
ers at the hearing and he will be aid
ed and assisted by the city attorney;
Hagenah e. Erickson have been asked
to submit an estimate Of their ex-
penses which, as o o as received,
will be presented to the council
ton Of the city.
Valuation of the Plant.
An interesting feature Of the con-
ference held today was the announce
ment that Hagenah & Erickson had
filed reports showing that the total
reproduction cost new of the local
plant is ~$1,139,5O1, and that the act
ual present valuation is $1,O07,S57.
In January of this year the Red River
Power 20. had given the valuation
Of its Grand Forks plant a $1,742..
1850.