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

per cent annually on $50 ,000 as de-
probation and to charge renewals
and requirements to operating ex-
pense proved to be the chief bone OF
contention at the hearing of Anthony
Jurich's complaint demanding lower
light rates in Ely, and Chairman j.
F, Shaughncssy declared severa!
times during the day occupied by the
hearing that such constituted q du-
plication of the charge and he init
mated that he would decide against
the company on at least that onn
point The hearing was started and
concluded Wednesday.
! Arthur Smith, president, general
manager and owner OF all but four
shares OF the stock of tie company,
us the chief witness for both sides,
declared repeatedly that the public
service commission in 1913 had au-
thorized him to charge off the 5.SS
per cent. lie testified that the COM
pany was earning but 34S per cent
on $65, ,00o, but Mr.. Shaughnessy
added these percentages together and
| told Mr.. Smith that he was earnisg
lS.2 per cert, which was mora than
previous occasion had authorized tho
lcompany to earn. The authorization
at that time was Z Z per cont.
This feature of the controversy ran
all through the hearing In answer
to majority of the questions Mr..
Smith put in reservations touching
his right to SIS per cent which the
commission had promised him.
When at 10 O'Clock the hearing
opened in the district court room,
Mr.. Zurich asked that The record
show that the county of White Pine
as a party complainant had entered
an appearance and was represented
by District Attorney II w. Edwards.
who was present, and the city of Ely
likewise. being represented there by
Acting City Attorney G. A. Eddy
Mr.. Jurich called Mr. Smith to the
stand and proceeded until the mid
die OF the afternoon, except for the
noon recess. to examine him. First
asking if it were not true that the
company was paying the Nevada
Consolidated Copper Company cents
a kilowatt hour for power and ascer-
tanning from Mr. Smith that about
40 per cent of its power was gener-
ated by his company by the use of
water power at Il present cost of 81
mills, Sam Belford. for the respond
ent, asked that all this matter be in
troduced in the form Of evhiEits from
the BOOKS ana records of the COM
pany, which were prepared therefrom
by Mr.. Smith and identified by him
In all there were twenty-one such
exhibits.
The average cost was 80 cents per
kilowatt hour. but when Mr.. Zurich
attempted to induce the witness to
say that which cost him 80 he sold
at 17.5 cents, Mr.. Smith replied:
No, that's only part of the cost.
For the ten-month period from
September /, 1922, to June 80, 1923,
Mr.. Smith showed that the cost of
power to his company was $14,-
21S .6o, the number of kilowatts be-
ing 67,400, but there was a further
expense of S21, 1,S2734. This, he said,
even did not include depreciation or
bad debts.
The gross earnings Tor the period
had been $43,564.74, with further
sum Of $202.66 fer iobbing, which
does not figure in ratemaking, but
it brought the total receipts for ten
months up to $43,757.40.
To an expense of $36,045.99 Mr..
Smih added the 5.SS per cent depre-
citation on $4,000. amounting to
$2,5S7, and bad debts of s562.75.
bringing the total up to s39,205.74,
leaving margin of s4,551.G6 Ger ten
months operation.
AS part of this expense Mr.. Smith
explained that there was % per
cent line loss, In the form of power
escaping from transformers and
wires, amounting to $3,295.57.
There was an item of So 900 paid
to the Ely Water Company, being
$500 month for the use of water
in generating power. Mr.. Jurict
questioned the witness closely ON the
ownership of the two companies
showing them thereby to he iienti-
cal though separate entities. Re-
spending to inquiries by Mr.. Belford,
Mr.. Smith said the water arrange
ment was highly advantageous and
profitable to the light company.
Wages amounted to $4,463.st q.
the power plant, three men drawing
wages An engineer received $5.75
day and two operators $4.75 each
An electrician received 5000 a month
and Mr.. Smith as president and gem
eral manager $500 q month.
"You are also at the head of tho
Ely Water Company, the Ely securi-
ties Company. the East Ely bank, the
McGill bank and the Georgetown
ranch, are you not?" asked Mr.. Ju-
rich.
Mr.. Smith replied that he was but
the ranch belonged to the water COM
nany and that to some of the COM