The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1924-02-11
City Objects That They
lWould Permit Hughes
! Company TO Take Much
Money
CASE is REOPENED
Railroad { Commission Hears
Additional Objections to
Present Rates Charged

Protest against the proposed rcvi-
hon of the meter deposit rules an
bounced by the Hughes Electric Com
pany, on the ground that the COM
pany could require deposit of many
thousands of dollars by consumers,
was made to the board Of railroad
commissioners today by the city Oh
Bismarck.
Unless the board of railroad COM
missioners suspends- the proposed
rules, they will be effective tomor-
row. The city's objections, filed by
c. l.. Young, city attorney, follow:
upon request Of the Board OF
Eailroad COMMISSIONERS, the City OF
Nismarck desires to submit the fol-
lowing. with reference to the meter
rules proposed to be adopted by the
Hughes Electric Company:
"First: Ostensibly the purpose OF
the proposed rules is to indemnify
the utility against loss for service
rendered to its consumers. II 1t IS
the intent of the rules that the de-
11sit is required to make the con-
. sumer temporary purchaser OF the
meter, they clearly are Objectionable
in that regard for the meters are
and should be the property of the
utility. Assuming that the purpose
is to protect against loss, the re-
ouirement of deposit on the part OF
all consumers is unwarranted ana
unnecessary 1t may be that IN GER
tain cases the requirement of a de-
posit should be permitted. The pro-
posed rules makes it optional whetn-
cr the utility will require deposit
= excess of 500, where the consum-
er on the average incurs. "a bill In
excess of that sum for service fur
nished over a six weeks period. II
such requirement can be left op-
tional with the company, it can be
left optional in cases where the aver
age bill is less than $500. The re-
ouirement of deposit on the part
of all consumers, in the absence OF
necessity therefore, should not be
permitted.
Second: The same objection is
applicable to the requirement OF q
minimum deposit for steam consump'
tion. That too can be left optional
That is, the utility should be requir-
hi to determine in each case whether
it will extend credit or not, the same
as grocer or druggist or clothiel
must in each case determine whether
he shall extend credit.
"Third: If the rules should b'
approved by the board of railroad
commissioners, and the deposit speci
fled permitted, there should be cor
=. responding readjustment of the ord
ers heretofore made respecting rates
If these deposits are required to 81
made, the consumers of the city vii
be furnishing the utility with larg'
part, if not all, of its working capi
tai, and the item of working capita
allowed in the existing orders shoul'
be modified accordingly.
Reopen Case
The railroad commission heard evl
dence today in the reopened case il
Which the Hughes Company seeks
tmuch higher valuation for rate-nak
ing than it ever claimed before, an
in which consumers demand a reduc
tion in rates.
Chairman Milholland said that tn
hearing was reopened because it wa
deemed advisable to put in the rec
ord more detailed information re
garding charges Of the Hughes Elec
trio Company. c. E. Martin, account
ant, and E. H. Morris, engineer, wer
called as witnesses to expand. on tn
srecord before the body. Attorney
sfor consumers, the city and utIlit
appeared.
Martin read his accountants state
ment. C. l.. Young, city attorre!
called attention to what he said az
peared to be a duplication of charge
payments being made for employ
ers' liability and Workmen's Con
pensatior Insurance while at tn
same time the J company settle
laims outside of these. He also ask
ed if the five percent annual deprt
citation listed by the company on
brick building were not higher tha
usual. Answer was deferred until M
Morris could take the stand.
S. o. Hellstrom, attorney for cor
sumers, inquired if the witness wei
qualified to speak upon the advis'
bility Of several charges for attol
neys' fees, audit and miscellaneor
expense, stating that great increas
in miscellaneous expense was shcw
= over the previous year. The witnes
replied that his testimony was as
what was shown on the books and h
was not expected to draw concl'
sions. The position was sustaine
by the commission chairman.