The Barre daily times. (Barre, Vt.) 1897-1959, 1920-02-21
Was Shown by Witness of
Granite Men in the
Rate Hearing
I'm PROPOSED RAISE
OF ABOUT 25 PER CT,
Hearing in Barre Case Be-
fore Public Service Com
mission Concluded

tive to the proposed increases in power
rates filed with the commission this
fall came to an end last evening. Prac-
tically all of the day yesterday was
devoted to the testimony of the petit
toners, who are the quarters and man
ufacturers in this granite district.
During the morning session Mr..
White, an appraiser and rate expert OF
the American Appraisal company, was
used as witness for the power users
and until noontime he explained about
the obtaining and checking over the
various pieces of property which went
in to make up the inventories or quan.
titles, and what unit values were at
tached thereto He explained about
the three appraisals that were worked
out by the American Appraisal COM
pany under the supervision of Harry
Engh, who had testified the day be-
fore, and by himself, stating that the
appraisal company had worked out
three sets of reproduction figures. One
set covered the l0.year period ending
Dec. 81, 1919, which included what is
known as the war period, another set
covering the l0year pre-war period,
that is, the period ending in 1914, and
the third set covering reproduction
costs during prewar 2O-year period
ending in 1914
He gave as the reproduction values
found by the American Appraisal com
pany on these three methods Of figur-
ing, the following figures: The first
method namely, 10 years including
war time, s3,0S5, ,S5l.34; on the basis
of 10 years excluding the wartime
period, S2,574, ,O0660; and on the basis
of 20-year prewar period, the repro
duction valuation was ascertained to
be S2,4S3, ,6Sl07.
Mr.. White testified that the last fig
ure, covering the 20year pre-war pc
riod, approximated more nearly the
actual cost of the properties because
almost all of the properties OF the
power company were actually con-
structed during that period. The wit
ness also testified about certain curves
of prices of different materials that
went into the construction OF the plants
during these periods above mentioned
and also submitted a comparison of
the appraisal Of the American Apprais-
al company with the selling price of
the Moody & Almon plants, showing
that the actual selling price was less
than any of the apraisals submitted.
Mr.. White qualified as an expert on
rates and the ALLEGATION among the
various classes of consumers. He ex'
nlained how he divided operating ex-
penses and hours of maximum demand,
etc, among various users, setting up
three classes, one of light consumers,
the other power consumers and the
third the electric railroad. He fixed
this at 8 to in the daytime as the
power load period and about Is hours
for the electric railroad period and
from 1 in the afternoon to the next
morning as the light period.
Mr.. White explained both in direct
and cross examination that some pow
er and some light would, Of course, be
used in any Of these periods, but that
taken as a whole, his division as To
periods of time Hnd maximum demand,
as shown By the charts Of the com
pany, were as reasonably accurate as
could be obtained--and were a fair
basis upon which to allocate the rates
Too Much Load on Power Users.
After finding the percentage which
each class Of consumers should bear in
the wav of expenses and services, Mr..
White went on to give his concluding
figures. showing thereby that the pro-
posed increases Of about 25 per cent to
the power consumers Disseminated
against the power consumers and placed
the larger burden upon that class than
should be placed He showed that i
the lO-year pre.war period or 2O-year
pre-war period should be used that the
power companies should rather have
credit than be charged additional for
power: but that If the valuation OF the
i0-vear period which included the war
time was used, the power consumers
would have to pay nothing.
Both he and Harry Engh acknowl-
edged that If any of the reproduction
values that were submitted by the
power company and by their company
namely. the American Appraisal COM
panv, we're adopted, there would be an
increase in rates, large If the power
companv's figures were accepted, and
quite small if the 2O-year pre-wsr pc
riod were accepted.
ON cross examination the counsel for
the power company attempted to show
that one Of Mr. Whites charts was
wrong in that il showed the erection
of plant No. at date earlier than
plant No. l. The witness testified that
hat was the information that he r.
ceiyed from one of the employees of the
power company and Chairman Dutton
Of the commission came to the rescue
II an parties and said that he had
personal knowledge that plant No.
was built before plant No !.
Financing Revealed.
Mr.. Jackson called g. l. Blanchard
II Montpelier TO the witness stand and
he testited that in 1898 he bought the
gorge water power for $40
and in lSg6 sold il to jesse Niles for
- so and that this purchase included
land on both sides Of the stream.
II. NJ. Cutter. treasurer of the Ma
ional Life Insurance company, was put
"a bv the petitioners and testified that
IN Nav ;. 1908. the National Life In
.urance company sold the Consolidated
/. Lighting company properties for s3S3,
lSS.as ID vas brought out that these
sane properties were On that very day
rssf upan the book II the Consolidated
.fehtiur company. then under tn con /
irul II q Mr Davidson. for over $500 /
so The same kiBd q evidence Vas