The Bismarck tribune., 1919-03-26
WHOLE DAY GOES
| N T 0 UTILITIES
SERVICEH HEARING
Uninteresting Mass of Details
and Statistics Present on
Both Sides

Both Sides
An entire day was consumed yester
day by the railway commission in hear
ing the petition Of Fargo citizens for
lower rates and more service from the
Fargo Heat, Light & Power Co.
There was an array of attorneys and
experts, representing n. NJ Byllesby
e Co. of Chicago, owners Of the Far
go property, and the attorney gener-
ais office, which is appearing for
the petitions, which filled the senate
chamber.
Accountants and engineers for the
Byllesby interests claimed that the
physical valuation found by Hage.
nav & Ericsson Of Chicago, who made
the public utility survey for the state,
was about $4,000 short. Otherwise
there was no dispute on the Ques-
tion of valuation. The principal con.
tention of the defendant corporation
was that the higher rates for electrl-
city and steam heat, against which
the protests were filed, were neces.
sary to enable the company to sell
gas at reasonable price. The ques-
tion for the railway commission to
decide seems to be whether consum-
ers of electricity and steam heat
should assist in paying the bills Of
gas consumers. b. ..
Small Profits Shown.
Thomas McDermott Of st. Paul,
general counsel for the Northern
States Power Co., on cross eXamina
tiOn brought out the fact that the
Grands Forks utilities net earning
were but GIL per cent for electricity
and 2.S per cent on gas, while there
was an actual loss on steam heating,
the average earning being 3.SS per
cent. The states engineers admit
ted that the company was entitled to
an earning of eight per cent. Nc
Dermott also sought to establish the
fact that the state engineers physi
cal valuations were $11,34O low on the
electric plant; $13,6S0 low On gas.
and $3,075 low on steam
1.-The logical thing for us to do, in
the light of the facts disclosed here,
would be to appeal to the railway
commission for an increase in rates .
said r. F. Pack OF Minneapolis, vice
president and general manager Of the
Northern States Power Co. He denied
any such intent on the part of the
company, however.
Difference in Opinion.
Rates charged in Fargo by the
Union Light, Heat & Power company
for gas, electricity and steam, and
rates charged at Grand Forks by the
Ked River Power company for the
same products, are under scrutiny In
the hearing 4@ ,.,s 4.ra.- r.s
Ion the basis of the Hagenah & Err
icson report covering the Union Light
Heat & Power company. the engineers
being engaged by the state to inves-
tigate the plant valuations, rates, re-
turns, etc, 1t is held that the com
pany has earned a. net profit for
1918 of s9.54 per cent on its entire
plant. and that Electricity earned 15.45
per cent; gas, 4,125 per cent, and
steam. 1924 per cent, these percent
ages being based on the present value
Of the property. ~ ...s ... NE
Aat Grand Forks the state engineer
reports whole plant profit OF 3.9S
per cent on the present value, diVid-
ed as follows; electricity, GLE; gas
280 per cent, with net actual loss
in the steam department of $3,l59.
The company rate expert, testify
ing this morning, fixed Grand Forks
earnings at ESQ per cent on the whole
plant, present valuation considered.
Electricity Is credited with 4.35 per
cent profit, gas with 1.S4 per cent
profit, and steam with a 305 per cent
loss.
Question Of Fair Rate.
The question OF what is fair rate
was raised by the state engineer, Mr..
Hagenah, who said eight per cent is
sufficient. Robert Pack, vice presi-
dent of the Northern States Power
company, which is the holding COM
pany, contended this morning on the
witness stand that 1t was necessary
to realize ten per cent to cover all
interest and dividend accounts.
The question of whether or not the
Fargo and Grand Forks plants should
he considered as one unit or whether
they should be divided into depart
ments and each utility branch made
to support itself and produce suffi-
cient revenue, is an issue, with the
{ company contending for the plant unit
basis, and the state contending for
separation by departments, each de-
partment carrying its own load
The case Is being conducted by
Assistant Attorney General Frank E..
Packard for the state. and by Attor-
ney Thomas McDermott of St Paul
for the companies.
Consumers Complained.
The cases come before the railroad
commission on complaints filed Dy
Grand Forks and Fargo, which charg-
ed that the rates were exorbitant and
unreasonable.
The new rate schedule went into ef-
feet July 1, last, and it is II cents
net per kilowat on electricity, and
81 net on gas. Prior to July the
rate was 8.S cents on electricity. and
net $1,485 on gas.
WEATHER. REPORT.