Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1929-06-16
WILL

Continued from Page ID
board as strenuously as possible. 8.
o. Richcreek, chairman of the
board Of directors OF the district,
said Saturday night. He added that
if the increase was granted by the
board it would be opposed in the
courts and that the suit would be
carried to the supreme court II nee
eSSary.
Plead Big Investment
The plea for permission to collect
and increased flat rate and per wa
tering charge is based on the state
ment that the American Rio Grande
Land and Irrigation company has
recently increased its investment
since the present charges were fixed
By the board and that present
charges fail to ear any return on
the investment. which IL says has
grown to 100000.
The pleading. filed by d. w.
Glasscock as attorney for the COM
pany. sets out that the present rates
established by the state board Of va
ter engineers since April /, 1922,
were based on a valuation Of S3.000,-
600 and were calculated TO earn a
return Of s per cent on that in
yeStment.
The petition now before the board
sets out that If the present rates
were earning 6 per cent that still
would be too low to be a fair return
on the investment. but that as a
matter Of fact the company is not
receiving any net returns whatever. "
Petition
That the prevailing interest rate
in the section where said properties
are located Is at least 8 per cent
per annum. The petitioner has out
standing bonds on said properties
vhereon the interest and discount
create fixed charges of the cost of
the money amounting to at least 8
per cent per annum. The general
policy Of the laws of Texas is to
allow public utilities a net return Of
10 per cent as reasonable. And pc
titioner alleges it is entitled to at
least 3 per cent per annum net re-
turn value Of at least 81. 900 on
said properties: and that any less
amount OF net return is and would
be unreasonable and unjust and
confiscatory. Since the date of the
entry of said orders by your board
and the cost OF maintenance and of
operation. and of all materials, la
Dor, items and factors entering into
same, has greatly increased. That
each and all items and factors en-
tering into the business and reason
ableness Of the rates to which petit
toner is entitled have changed and
increased since the date OF the en-
try Of said orders by your board.
That the rates and charges fixed
by your board therein have become
and arc now unjust to your petition
er. and unreasonable. and confisca-
tory of the properties and invest
ment Of your petitioner. That the
entire income received by your pc
titioner under said rates and charges
counting all thereof as collected. has
not been actual experience since the
date said changes became effective
and are not now more than suffi-
Gent to pay the actual cost Of MAIN
tanning and operation Of said prop
critics and cover proper amortization
and depreciation charges.
Petitioner alleges and shows 10
your board that under present con-
ditiOns, and all the existing facts
having relation thereto. the rates
and charges to apply on said system,
in order to be reasonable and Just,
and to allow petitioner a fair and
compensatory return on the value
Of its properties employed in said
service should be a "flat-rate" OF
at least $500 per acre per annun