Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1918-03-01
COUNCIL PROCEEDINGS
City of Grand Forks, North Dakotaa
SPECIAL MEETING OF THE CTxy
, COUNCIL, WEDN1eDAI, FEB

Io,,o '
~ 4 gu 1ez sp.e.., ,e....nx:
council of the city OF Grand Forks,
North Dakota:
be Gsntle ea,;Gsa ,ns3 and a,e eaeh ,a.. yeu are r.
Forks, North Dakota. will be held on
o'clock p. M, of said day.
The object Of said meeting is to re-
ceive. consider and act upon. the report
Of the special committee appointed De-
ccmber 18th. 1917, to investigate the
rates and surcharges of the Red River
steam, etc, and to act upon a resolution
complaining that the rates charged in
the city of Grand Forks by the Red River
steam is excessive and such complaint
to be made to the Railroad commission
ers Of the state of North Dakota.
No other business will be transacted
you will take due notice, and you are
hereby notified to attend said meeting.
Dated at Grand Forks. North Dakota.
this 27th day of February. 1918.
Respectfully, submitted,
~ w. Fl. ALEXANDER,
Due and personal service Of the Nth
in and foregoing notice Of the special
Forks. North Dakota is hereby admitted
at Grand Forks, North Dakota. this 9th
Ody VI ESOTudIy, 1910.
w. II. Kelsey, alderman LIST ward.
And. Veitch and Z. J. Pyes, aldermen,
Thos. Griffith, A. G. Lockman. alder
Orr sanders; W. S. Whitman. alder
a. J; F; Smith; John M, Gillette. alder
w. H. Bird. alderman 9Th ward.
A.. Peterson. L. Kleven, alderman 7th
Special City Council Committee Report.
on Power company's ~Surcharge.
To the Honorable Mayor and City
Council, Grand Forks, North Da-
kota.
Gentlemen: We. your. special COM
m1ttee OF aldermen and taxpayers APP
pointed by his honor, the mayo I'M
der authority of a resolution of the
city council adopted December II.
1917, to investigate and report touch
ing the rates charged for electricity,
gas and steam by the Red River
Power company and the surcharges
thereon, beg leave to submit the fol-
lowing as a final report:
!. We have received no further in
formation from the Red River Power
Co. n the date Of our report. to you
dated February 6. 1918, and this re-
port is based upon the information
derived from the response by the
company January Is. 1918, to the let
ter of this committee dated December
20. 1917, with other information de-
rived from other sources.
2. Your committee believes that a
public utility is entitled to charge
rates which will yield a return upon
the value OF its plant, over and above
reasonable operating expenses and
that such return should be at least as
large and perhaps somewhat larger
than the ordinary level Of interest re-
turns in the community.
3. Your committee believes thai
there are two important or controlling
factors to be taken into consideration
in determining the reasonableness OF
a public utility rate which. factors TO,
lack Of a better definition might be
stated as follows:
(a)- The value OF the plant as a
going concern, and
CD The reasonable expense of op-
Grafton. including taxes.
4. Your committee has not had the
opportunity, time Or means to make a
valuation Of h plant of the Red
River Power Co. at Grand Forks, and
Power Co. to your committee includes
the water power and plant at Red
Lake Falls, st. Hilaire and. Fisher,
and hence is of no value for the pur-
poses hereof.
5. Valuations for taxation purposes
are of little value as a basis for the
determination of rates, yet taxing
valuations are substantially the only
information received by your commit
| 6. In 1913 and 1914 the Grand
Forks plant of the Red River Power
Co. was valued by the city engineer,
the state engineer n by the mana
ger OF the Power Co., each separately;
these valuations were made to the
state tax commission for the purposes
Of taxation n represented the best
judgment of the different individuals
acting separately as to the value OF
the plant; these values range from,
1907, 604.75 to $401,s67.
Z. Your committee is not satisfied
that there has been m material in
GREASE in the investment or in the
value Of the plant since 1914, the date
of such valuation; during the year
1917. there was a valuation by HaE-
enah and Erickson, a firm Of Chicago
engineers. which valuation a made
at the request of the states tax COM
mission: advance reports have been
given to your committee as to such
valuation, indicating that such engi-
neers will probably value the plant al
approximately s7SO.70s;> such infor-
nation SO received by us, however, is
not official nor does your committee
know of h method of valuation ac-
tually adopted or the particulars
thereof and your committee is far
from satisfied with respect thereto.
To the council the power company
claims a value of 1.742,775.09.
8. With the information in the
possession of your committee we are
not satisfied. that the value. Of the
plant is in excess of the sum OF
5000, 600. =
9. We have not been furnished with
the earnings or expenses of the Grand
Forks plant separate and apart from
the Red Lake Falls. st. Hilaire and
Fisher plants, but we have been as
sured both orally and in writing by
the officers of the Power Co. that such
receipts and operating expenses are
negligible by comparison with the
Grand Forks plant and in the figures
given below the receipts of all plants
are aggregated just as they were given
to the committee by h Power Co.
and h same is u of expenses.
We give below a statement Gas
furnished us by the Power Coz Of the
receipts and disbursements of the
Grand Forks plant (including, az
stated. the Red Lake Falls. Fisher and
st. Hiiaire plants) for the years 1918,
1914. 1915. 1916 and II months OF
1911, as follows:
Receipts--1sls. ss2s,osnao: 1914,
t237.os2.40; 1915. $~26l.756.64: 1916,
vember 80, 1917. $~25o,357.64.
Expenses-1913. $140, $3.50; 1914,
143.149.o1; 1918, ~$3a2.726.s7; 1915,
t$156.735.4o; II months ending No
vember 80, 1917. $~16S,0s9.0S.
Net-1e1s. s~s5.75o.ss: 1914, $685.