The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1921-04-26
INVENTORY OF
UTILITY PLANT
IS PRESENTED
Engineers for Railroad Com.
mission Report on Hughes
Electric Company
TILT OVER METHOD USED
Company Attorneys Object;
Citizens Attorneys Say Plant
Built from Surplus
TILT OVER METHOD USED

The inventory and tentative ap-
praisal of the property of the Hughes
Electric company was presented to
the railroad commission today at the
continuation of the hearing on the
question Of the sufiiciency of the rates
Of the Hughes Electric company
Representative for the Hughes
company Immediately attacked the
appraisal presented by Chief Engi-
neer f. H. Morris for the commission,
while representatives of the citizens
committee appearing in the rate mat
ter sustained it.
The tentative appraisal Of Mr.. Nor
ris, as of May /, based upon physi-
cal inventory and pricing Of mate
rials used, was: historical original
cost of electric plant, $249,177.O0; de-
preciated value, 217,494.O0 Steam
heat plant, historical original cost
$1OO,25S.0O; deprecated value, $751;
$500. Grand total, historical orig
inal cost of the two plants, $349,-
435.OO; deprecated value, $295S09.00.
1t was stated by the engineer in the
report, which was lengthy. that II
per cent was added on totals to COW
er engineering, superintendent, in
terest during construction, taxes dur
ing construction, fire and liability in
surance contingencies and small omis.
sions from inventory.
Tilt Over Method.
Hans Myer, of Minneapolis, an en-
gineer appearing for the utility said
that it was the company's position
that on an appraisal on the historical
value basis the entire history of the
plant should be taken into considera-
tion. He said that because the city
of Bismarck, grew rapidly the COM
pany necessarily made changes and
that the present property is the fourth
plant. He had indicated the COM
panys position that valuation
should be based on reproduction cost
Claims People Built 1t.
F.. O. Hellstrom objected to this ar
gument, declaring that the plant had
been built up out Of surplus earnings
and that what had not been charged
off for depreciation had been paid for
in this manner. The people, he as
serted, should not be asked to pay
a return on a valuation arrived at by
such method
When the hearing opened W. H.
Stutsman, one of the members of the
railroad commission, was not present
T.. B. Cox, attorney, and Mr.. Meyer,
engineer, represented the utility. F.. 0.
Hellstrom, attorney for a citizens
committe; Theodore Koffel. as special
city attorney, and H. F. O'Hare. city
attorney, appeared for the petitioners.
Alfred Zuger appeared as attorney
for the Bismarck Water Supply COM
pany and objected to the Jurisdiction
of the commission as to changing a
contract between the water company
and the Hughes company as to rates,
which contract he said was reciprocal,
and was now involved in litigation
pending in the district court.
Mr.. Cox said that the respondent
resisted the motion, that the hearing
today was continuance and that the
water company attorney should have
entered any objection he had to
make before this time.
f. o. Hellstrom said that he waG
opposed to any special contracts for
furnishing service below cost as the
burden was borne by other consum-
ers.
City Attorney O'Hare objected to
the motion of Mr.. Zuger, declaring
Continued on Page Six)