Omaha daily bee., 1920-01-27
cit Y. ELECTRIC.
PLANT PROPOSED.
|. TO REDUCE RATE
Commissioner Ure Makes
Counter to Request of Me-
braska Power Co. for
\ Higher Prices.

An application by the Nebraska
Power Co., for authority to increase
light and power rates, in the face Of
City Commissioner Ure's< pending
ordinance for a reduction of these
rates, caused soiited discussion dur
! ing the city council meeting yester-
day.
The company's application was or
dered placed on file, and Mr.. Ure's
ordinance was laid over for dis
oussion next Monday. Mr.. Ure an
nounced himself in favor of submit
ting to the voters at the next cleo
ton 100000 bondNproposition for
the erection of a municipal COM
peting electric light plant.
Whole Story Not Told.
Mayor Smith and Mr.. IRE asserted
that financial statements submitted
by the electric light company were
only in the abstract and did not
tell the real story.
'There is nothing definite in these
statements" Mr.. IRE said. 1--WE need
actual information of the company's
affairs since 1915, when commit
tee of the Chamber of Commerce
fixed valuation of $4,500000 on this
plant. I will recommend that we in
troduce an ordinance for the sub
mission of a 100000 bond issue to
the voters"
THE statements sent to US by the
company today show their balances
for 1917, 1918 and 1919 in red ink.
/ know that the company was not in
red ink during those years." Mayor
Smith stated.
Willing to Show Books.
J. A. C. Kennedy, speaking for
the Nebraska Power company, re-
piled:
:, 1--WE are asking for an increase of
rates because we are not receiving
a fair return upon fair valutlon
We are willing that this council shall
appoint a committee to. investigate
our books and determine in that way
just what we are entitled to. The
company needs 100000 this year
for improvements. We are aware
that an existing rate ordinance au-
thorizes US to increase the rates be-
low the 6-cent maximum. but we are
coming to you for acquiescence and
corporation in this situation"
Mr.. Kennedy explained that the
company believed an increase OF 20
per cent of earnings would be neees-
sary this year to enable the COM
pany to meet increased operating
expenses and make necessary I'M
provements and extensions.
Support False Valuation.
Commissioner IRE asserted that
the light company is supporting at
least theoretical valuation of $16,-
100000.
Statements submitted by the COM
pany showed that during 1910 the
gross earnings were $2,325,455o5
from which was deducted a total of
81, o07, 0z223 for operating expenses
and depreciation charge, leaving
balance of $4l6,41l72.
The company indicated that the
balance should have been $885,59o
to yield a return on minimum val
uation." The difference between
$893,5oo and $418,411.72 was shown
by the company as deficit of $685.
1923 for last year.
One of the city commissioners
insisted that $883,5oo, which, the
company indicated should have been
the minimum net earnings for last
year, would support a valuation Of
more than Sl3,000,000, figured on the
following basis:
$ 100000 outstanding bonds on
which the company
spays per cent In.
tereSt $Z6V,VuV
100000 preferred stoc X on
which per cent Is
paid ...............-- 2su,U0u
$500. 900 common stock at
per cent .............. $4,000
s1s.2ooo0o ssS4,ooo
Explanation was made that the
item of So 100000 common stock was
assumed to complete the illustra-
ton. * ~,
The company invites the council
to make the closest examination, be-
licving they are justified in asking
for an increased schedule Of rates.
M NIL Gil. D1