The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1922-10-24
Hearing Held Before Railroad
Commission on Figures OF
Engineering Department
DEBATE Al PROCEDURE
Hearing Slow in Getting Un'
der Way Because Of Differ
ence Over Method to be
Pursued U.s.

Appraisal made by the engineer
ing department of the state railroad
commission of the property Of the
Bismarck Water Supply company
was held too high by the city and
too low by the company, at the con-
tinued hearing in the water COM
pany case held before the commits
sion today. :u
E. H. Morris, chief engineer Of
the commission, who made the ap-
praisal, was questioned first by
Chairman Millholland and then by
City Attorney O'Hare. The city
did not present total which it
claims is excessive in the valuation.
Mr.. O'Hare questioned Mr.. Morris
concerning certain items in the ap-
praisal. with the intent OF laying
basis for a claim that the valuation
is too high.
The hearing was slow in getting
under way because Of disagreement
between the various parties over
the method of procedure. The final
agreement was to the effect that
the present hearing is but con-
tinuation of previous hearings and
that after the railroad commission
has heard evidence today and fixed
final valuation on the plant the
water company has 80 days in
which to file objections. The city
and individual petitioners were re-
presented by City Attorney O'Hare,
C. L. Young and City Engineer At
kinson.- The company was repre-
sented by G. M. Morgan Of St.Paul,
and Alfred Zuger, assisted by J. W.
Kelsey, manager of the St. Paul
municipal water plant and Thomas
Poole. s.F'.
. Valuation Fixed
The valuations fixed by Mr..
Morris were: Cost of reproduction
of water plant as of Sept. l, 1922
prices, $449,293.OO; deprecated
value s4OO, O,s3s.OO. Construction cost
Of plant $276,436.OO; deprecated
value, s247, ,5s2.0O. Mr.. Morris said
he did not include anything for go1
ing value or working capital.
Questioned as to the method Of
making the valuation Mr.. Morris
said that he got prices for various
materials, taking the >. inventory
agreed upon by the city and water
company in 1919 and brought it down
to date. He figured the life of 8 and
12-inch cast iron mains at 100 years,
he said, and smaller mains at less
number because of expected absoles-
cence.
The condition of fire plugs,s he
said, he figured at 80 percent. He
said there was no electrolysis on
mains under Fourth street and with
regard to adequacy he said that from
tests run the plant was not ade-
quate to take care Of excessive de-
mands. By excessive demands he said
that caused by fire with high
wind blowing was meant. The mini
mum remedy, he said, was to put in
another pump and increase main ca
pacity from the reservoir to the city.
Questioned as to Methods
Mr.. O'Hare questioned him as to
methods in obtaining various items
in the appraisal. Mr.. Morris said that
where the company's books were
used only as they were OF value.
Questioned as to costs he placed for
constructing the intake and other
items Mr.. Morris said that the costs
were based upon construction costs
at the time they were built. The
company's books, he said, were nos
used in 80 percent Of the items be.
cause there was not enough detail
given.
Mr.. O'Hare said the figures OF the
railroad commission department
showed construction cost Of certain
items, including the intake and first
reservoir, at $4,000 while the COM
pany's books from 1903 to 1909 show
ed cost only Of $4,000, of which
$4,000 should not be applied to the
items mentioned.
Members of the railroad commls-
sion hoped to complete the hearing
this afternoon. .