The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1921-04-01
BEGIN HEARING
ON CITY RATES
ON HEAT, LIGHT
Railroad Commission Listens to
Arguments in Hughes
Company Case.
REVIEW ITS HISTORY
Financial Conditions Traced
in Testimony at the
D.. Hearing.

Evidence on valuation of the Hughes
Electric Company's plant was present
ed this morning at the opening ses-
sion Of the hearing which the railroad
commission has ordered into electric
rates charged by the company. This
hearing was ordered on request of a
body Of petitioners represented by
+. 0. Hellstrom.
The only witness called at the morn
ing session was E. A. Hughes, vice
pres dent and general manager.
Edward 3. Cox, attorney for the
company, in opening the case, declar-
ed that the company was not asking
for general increase. In some cases,
he said, he believed that the company
would find the present rates too high
and in other cases too lJw.,
In response to questions from Mr..
Hellstrom, Mr.. Hughes testified that
the first franchise granted the COM
pany had expired and, that the COM
pany was now operating under a fran
chise granted at latter date to his
father. This franchise, he said, ex-
pires in four years. ="
Il Books Destroyed.
Mr.. Hughes declared that it was i'm
possible for him to give in detail the
sums at the various times which had
been invested in the plant as his faith
err had not kept books and what rec
ords existed had been destroyed when
the basement Of the plant several
years ago was flooded by the high
water of the Missouri river.
The original investment in the
plant, he said, was $20,0OO A few
years later, he said, the plant was
moved and then another 100000 in
vested. Later when the third plant
was built the company sold the tele-
phone lines which it had and invest
ed the money received in the plant,
about $4,000, he said.
\ Since then another plant has been
built, Mr.. Hughes said. 49,.
Asks For Details. ,t
Mr.. Hellstrom wanted to know de-
tails regarding the incorporation Of
the company for 100000. He main
tanned that unless sufficient evidence
was introduced to show that the plant
was worth more than the amount at
the time it was incorporated, that that
valuation must be taken as the value
of the plant at that time and as the
basis for considering rather excess
profits had been made since then.
Mr. Hughes maintained that the val
ue of the plant at the time it was in
corporated was much more than the
100000 represented in stock Of tho
corporation.
Mr. Hughes was asked to present j
record showing the amount Of stock
in the company and the owners there
Of, the money put into the company
since the corporation was formed and
a. statement of the dividends issued by
the company.
A statement of income of the COM
pany for 1920 was filed. According
to this statement the revenue of the
company for the year was S212,191.00
and the operating expenses, $685.
667.O3, leaving a net revenue Of $685.
523.0O, which after satisfaction Of the
interest and reserve of $9,556.4~.
leaves a net operating income of $19,-
96654. aa
The company also received from the
sale of stoves and accessories, So
2OS.S3.
\ Clash Over Notice.
City Attorney H. F. O'Hare during
the hearing clashed with Chairman
Milholland of the commission over
whether or not the city had been no
titled of previous hearings, with the
exception of the previous hearing in
1921. Mr.. O'Hare maintained that it,
had not, while Mr.. Milholland was
positive that it had. Mr.. O'Hare. then
declared that if the notice had been
sent it had never been received by the
office of city attorney.
The petitioners were represented by
F. o. Hellstrom and H. F. O'Hare. city
attorney; the company, by Mr.. Cox.