White Pine news. [volume] (East Ely, Nev.) 1920-1923, 1923-07-29
ELY LIGHT HEARING MAY
TURN ON DEPRECIATION
CONTINUED from Page one.)


to which ones the services were do
mated and how much he received
from the water company, but this
was disallowed. Mr.. Smith could not
tell how much of his time he gave
to the light company for the $500 a
month, but insisted that he gave as
much as conditions demanded. Upon
Mr.. Belford's question he declared he
could not hire a mar as general man
ager under $500 a month.
How much is your proprietary in
terest in the Ely Light and Power
Company" asked Mr.. sShaughnessy.
Mr.. Bedford objected to this line
of questioning. Mr.. Shaughnessy or
dered a tote taken of the objection
and insisted upon an answer.
I own all but the qualifying
shares of the other directors" re-
piled Mr.. Smith. All but four
shares
Mr.. Smith said in the office there
was a bookkceper and stenographer
at So IA month IAN assistant at 500
and n collector at $40. These re-
ceiYed further remuneration from his
other companies, the water and Sc
curities. This was a highly advan-
tageous arrangement for the light
company, he explained.
Power were charged
10 1-2 cents per kilowatt, though the
cost to the company had been figured
in 1912 at Ill cents and another
year at 1882 cents.
Then you sold it below cost?'
asked Mr.. Zurich.
Very likely" replied Mr.. Smith.
He explained that circumstances va
ried, previous bargains were made
and many factors entered by which
such situations in that business were
inevitable.
A meter deposit of IS was eXacted
from light consumers, which was re-
turned in full if the bills were paid
and after one year the service was
discontinued, but for less than a year
there was a charge of $3.50 for dis
connection. Mr.. Zurich asked to be
shown the figures for the disconnec-
ton receipts. Mr.. Smith did not
know in what account they appeared
but was positive thai they were ac-
counted for among the statements in
evidence.
Mr.. ZURICH asked Cor Il detailed
statement of expenditures. Those
submitted were in the form OF totals.
Mr.. Smith will prepare and submit
this statement to the commission.
He could not tell the charge for
power, the cost of production or dis
tribution at other places, Reno, for
instance, being one upon its mention
by Mr.. Zurich, the witness said he
was not familiar with.
Asked about the cost of lights to
consumers at McGill Mr.. Smitn said
he understood at one time they we're
donated and now he understood If
was s cents. He was not Informed
whether or not this was served at a
loss, hut said the town was more
compact and there was far less line
and transformer loss In the Ely
plant there were thirty-one trans
formers, with a loss from each as
low as 3 per cent, and nothing could
be done to prevent it. His wires
were standard in size and the trans
formers modern.
The average total cost of power to
the company for ten months was 9.9t
cents per kilowatt hour. He was
selling power for motors at the mar
row margin between that and 10 1-2
cents because the commission had or
dered it.
Lights for the city of Ely were fur
nished at S ID cents, which was at a
loss but it was an old arrangement,
amounting to a contract. which he
had never seen fit to dispute. The
same rate was allowed for four lights
in East Ely, they being paid for by
the Ely Securities Company for the
good of the town. Mr.. Zurich sought
to induce Mr.. Smith to admit that tbs
loss between s 1-3 and 9.96 n for
the East Ely service was in fact paid
for by the private consumers in Ely.
but this the witness refused to do.
insisting that the company wis sim
ply losing it and that ended it.
The power rate of 10 1-2 cents wac
made because of the service being
rendered in the daytime when the
plant had to run anyway, it being re-
garded as practically that much vel
vet, but it was against the rules to
Mn CCnHn