The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1922-10-24
ASKS $4,000
BEREBATEDBY
ELECTRIC co.
Petition Claims Earnings For
. Year Are Near 30 Per
Cent Return
AID IN CASE ASKED
F. O. Hellstrom Wants City to
Employ Auditor to go
Over Company's Books

Alleging that the Hughes Elec-
trio Company made 80 percent re-
turn en- the value of its investment
under the experimental rates fixed
for one year by the railroad COM
mission designed to net return OF
8 percent as contemplated by the
utility law, a number of Bismarck
citizens filed petition with the
state railroad commission late
yesterday asking that new rates for
the utility be fixed, dating from
May 81, 1921, and that rebate be
made to electric and steam consum-
ers of the alleged excess rate re-
ceipts.
The city commission also was
asked last night to employ an audit
or to assist in the preparation OF
the case. for the purpose of audit
ing the books of the Hughes Elec-
trio company to determine if there
is not more money that should be
rebated to the consumers. F. o.
Hellstrom represented the petition
ers. .sa
According to the spokesman, the
railroad commission fixed rates on
electricity and steam for one year
from July l, 1921. designed to give
an 8 percent return. >.;'-<
Says Earnings High
At the end Of the year the reports
filed by the Hughes Electric COM
pany with the commission showed,
he asserted, that the gross revenue
of the utility was $216,s30.70 and
that the gross expenses were $751;
681,22. OF the amount charged to
gross expenses $18,334.75 was charg-
ed to capital expenditures and
should be deducted from the re-
ceipts, he said.
Under the railroad commission
order the utility's income should
have been $4,000, the spokesman
said. The company's figures show
ed the return to be about $4,000
net revenue, or $4,000 in excess Of
what it should be. This $4,000
should be rebated to consumers,
Hellstrom asserted. -..
Referring to the figures Of the
company he said that he believed
there was at least $4,000 more
charged to capital should be, found
by an audit and $1,000 duplicated
tax charges.
City Attorney O'Hare raised the
point that if the city Joined in At
tacking the rates Of the Hughes
Electric company the utility would
take the matter into federal court
as did the Minot electric company
and probably force higher valua-
tion. .,r.t.s ~
Says Valuation Agreed To
Mr.. Hellstrom replied that the
| valuation on which the rates had
been fixed for one year was agreed
| to by the attorneys for the Hughes
Electric company, himself and at
torneys for the city. There could
be no quarrel over the valuation, he
asserted. .--..a.
! MI. O'Hare also suggested the in
crease in price of coal caused by
the coal shortage and the spokes-
man for the petitions answered by
saying that reports of the company
did not show any increased expendi-
lures. In fact, he asserted, the re-
ports of the Hughes company for
four months, July to October, 1922,
showed operating expenses decreas-
ed from $5s,29o.43 to $53,603.So
while earning fell off in less ratio.
The commission deferred action on
Hellstrom's request for an account
ant to 90 over the Hughes company
! books. .....
The commission received a letter
from George Doorley stating Alex
ander Mckenzie had told him water
for the city hall was to be free.