Seward daily gateway., 1924-02-09


 larger lamps and small stoves who were not paying for the same. While ] under the meter system at lower rate, more juice would be used, the total consumption would not meet his payroll He testified that he had granted but one special rate for cook ing, and that an 80-ampere stove at the present rate for power would cost the user about S35 per month, such stove using about 12 h. p. in current.
 MT. Graf at this point gave most interesting history of the power com pany, showing it was acquired from the Seward Light Company for $3o,- 900. He had put $70,O0O in the plant, in addition to the first cost, $27 900 extra in borrowed money, and 19 years of hard labor. MT. Graf said he installed the first electric light plant in Alaska at Juneau, and helped pro- mote the old Seward Light Co. He
  his total receipts were $462, and that he and his son run the business, do ing their own repairing, and looking after the generators. He testified that under stress he could furnish 25 per cent more power than at the present time He declared that many enter prises in town were paying more than they should, naming the Sexton Hotel the school house, etc. and that others were paying less. He said in former years he gave current free to the fire hall church, and hospital as we'll as maintaining 12 street lights, but that owing to demands on the service he was forced to discontinue the prac tice.
 Under MT. Smiths questioning, MT. Graf stated that the Sexton Hotel in January paid $729O; The Seward Ho- tel, $34.S0; The Van Guilder, $54.30, and, the Hotel Overland, with me ter, $25.OO.
 MT. Graft stated that while his com pany would not be able to furnish juice in large quantities to companies coming in ii any company signed a contract at a reasonable rate, he would provide 300 h. p. additional, but that it would require three new pipe lines.
 MT. Graf admitted that since 1919 power rates had been raised from SIP to S150 per annum. He explained that if he installed an auxiliary unit it would cost between 35 and 40 thou sand dollars, and would cost nearly $4 per hour to operate same.
 Under Mayor Rays questioning, MT. Graf stated that he valued the com pany's holdings at S183,000, with no charge off for depreciation, amortiza- tion of obsolescence. He stated that $36,0OO per annum should be charged off for depreciation, but that his gross receipts in 1922 were $31,337 and in order to secure the ordinary earnings on his investment he would have to earn $63,237 with but 239 customers to get it from.
 In January of this year he had Fl business contracts, with a revenue of $1,5O5.99, or an average of $212O per customer. His gross returns for 1922 were $31,337, which included labor, Stock and electric current. This gave him about $4,000 net MT. Graft said he would install meters if the coun- ell gave him the privilege of charging 15 cents per k. W. hour for light and ten cents for power, but any lower re- duction would be ruinous Answering questions to the extension of the telephone lines to take in the north ern part of the city he said that ii the council would give him franchise and allow him to raise his present rates 25 per cent he would place a ! trunk line to the northern end at a cost of about $6 900, but would have to have contracts for at least ten | phones to do so.
 The meeting was most amicable, the council and defendant cheerfully ex- blaming all questions involved. The only hitch apparent in obtaining me ters now appears to be the reduction in the rates proposed by the council. which has set the rate at 121a, 10 and 8 cents. Mr. Graf insists that the light rate be 15 cents per k. W. hour It is believed that the matter will yet be adjusted without recourse to the courts. The meeting will be continu- ed at the court house at o'clock to- night.