Seward daily gateway., 1924-02-06

| lowered more lSntS would De uSou but the result would be a decided de- crease in income. If people were on meter service during the long days of the summer months they would use very little juice, the average the year around being probably 50 per cent of the present output He declared that at the present time his meters at the central station showed a fifty per cent more juice being used than his con- tracts called for, many persons using larger lamps and small stoves who were not paying for the same. While under the meter system at a 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 l the user about $35 per month, such stove using about 12 h. D. 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 s70,O00 in the plant, in addition to the first cost, $27 900 | extra in borrowed money and 19 years Of hard labor. Mr. Graf said he installed the first electric light plant . in Alaska at Juneau, and helped pro- mote the old Seward Light Go. He stated that ill the monts ot June, 1908, 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 well as maintaining 12 street lights, but that owing to demands on the service he was forced to discontinue the prac- tice
 Under Mr. Smiths questioning, MT. Graf stated that the Sexton Hotel in January paid $72.90; The Seward Ho- tel, $3480; The Van Guilder, $5430, 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 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 $50 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 $183,000, with no charge off for depreciation, amortiza ton of obsolescence He stated that $36,O 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 T business contracts, with revenue of $1,5O5.99, or an average of $21.20 per customer His gross returns for 1922 were $31,337, which included labor, Stock and electric current This gave him about $4,000 net. Mir. Graf said he would install meters if the coun- cil gave him the privilege of charging Is 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 l telephone lines to take in the north ern part of the city he said that if the council would give him a franchise and allow him to raise his present rates 25 per cent he would place a l 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 12h, 10 and 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.