Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1920-12-18
Power Go. Rate
Hearing Set Over
Until January
Electric Light Concern Sub.
mits Lengthy Exhibits in De-
fense for Consideration
By City Council.

Hearing of the Nebraska Power
company's application for an in
creased schedule of light and power
rates, which was started last Tues
day afternoon before the city coun-
Gil, was adjourned temporarily yes
terday afternoon, to be resumed on
Monday afternoon, January IL.
The company submitted q type
written exhibits and offered oral
testimony of two New York experts
and several of its officials in a pre-
sentation of what it believes to be a
complete argument in defense of the
application for increased revenues.
Exhibits to Be Considered.
The mayor and city commission
ers will consider the exhibits and
also will have copies of the tram
scribed testimony of the hearing
thus far disposed of: These officials
will confer in the mayors office this
morning to agree on a manner of
procedure. In view of the far
reaching ranlihcations of the case
and the intricate problems involved,
the city council may, engage an ex-
pert to assist in the work. Commits
sioner Ure, himself an accountant,
recommends expert assistance
w. L. Henderson of New York,
associated with the H. c. Hopson
company, and c. E. Bailey of the J..
G. White Engineering corporation.
New York, experts who appeared this
week for the company, will return
to Omaha next month and will sub
nit themselves to the council for
further examination along any lines
which the mayor and commission
ers may wish to conduct.
Company Claims Shortage
w. S. Robertson, assistant mana
ger of the company, was recalled
yesterday afternoon in connection
with several exhibits which were Of
fered. In the first exhibit the COM
pany claimed there would be short
age Of ..63l ,o68 this year, based on
Mr.. Henderson's book cost of the
plant, which was given as $12,083,-
65o46. The expectant shortage for
1921, on the same book cost basis,
was shown as $885,067. A compan-
ion exhibit showed that the short
age for this year would be 1887
273, based on Mr.. Bailey's reproduc-
ton value, as of last June, of $H,-
58O,loO.
C. J. Snyder, who is in charge Of
the construction work and general
physical units Of the plant, testified
yesterday afternoon that it is the aim
OF his company to maintain the plant
at what is practically 100 per cent
operating efficiency. He explained
that the composite life of an electric
plant is estimated at 20 years.
Say Requirements Necessary.
Attorney J. A. c. Kennedy for
the company, brought out from Mr..
Snyder the statement that replace
ment fund experiences of past years
do not constitute a safe criterion on
which to basel uture requirements
for renewals and replacements. be-
cause many major installations have
been made in recent years, and it
must be anticipated that major re-
placements will be necassry.
Mr.. Henderson was recalled to
testify as to recent demands of in-
vestors in public utility securities.
He offered for the records a COM
pilation of Is representative public
utility bond records, showing that
there has been an increase of 46 IL
per cent in. yield between. January.
1914, and September, 1920. He re-
ferred to a recent issue of Nebras-
ka Power Co.'S bonds in the sum
of $1,600,000 which bore nominal
or face rate of interest of s per cent,
but figuring the discount, the money
cost the company from 8 to sos per
cent per year.
nArr>c;a4;ns, niscnsaAd