Nogales international., 1931-07-18
VALUATION MADE BY ENGINEER
FOR STATE BODY MUCH LOWER
THAN RATE BASIS SIX YEARS
Attorney For Public Utilities Consolidated
Corporation Admits At Hearing That
Rates Here Are Discriminatory

Proper valuation of the hold
ings of the Public Utilities Con-
soIidated Corporation here for
rate making purposes is ap-
proximateIy SS47,OOO, it was
brought out yesterday at the
opening days session of the
hearing of the application of
the city of NOgales for lower
electric rates.
This $347,OOO is made up as fol-
lows: $2O7, ,50962 the present lvalua-
ton of the electric plant No. and
distribution system, $88,566 present
valuation of the gas equipment, and
added to these figures is to be al
lcwances for working capital and
going concern value.
The above figures were learned
through testimony submitted by
James H. Wilson, an engineer for
the Corporation Commission, who
has been here from Phoenix for sew
eral months making valuation OF
the public utilities holdings.
This figure of $347,O0o is $253, 900
less than the approximate 100000
valuation on which thepublic util-
tiles company has been paying taxes
since 1924 and under which present
rates, it is said, are based
Rates To Be Cut?
The hearing, which began yester-
day and will probably not end until
Monday evening, is expected to re-
suit in reduction in rates.
This is the consensus of opinion
of everybody attending the open
ing days session yesterday. The
City of Nogales contends that the
rates being charged here are high,
unreasonable and are based on a
fictitious valuation. Even James R.
Malott, prominent Globe, Arizona.
attorney, representing the pow
er company at the hearing, ad-
mitted publicly before the Corpora
ton Commission during the hear
ing yesterday that the present rate
schedule is discriminatory and some
of the rates are too high and some
too low.
Following the hearing it may be
60 or 80 days before new rate
schedule can become effective here.
Testimony being presented at the
present hearing will be taken under
advisement by the Corporation
Commission. All of the testimony
presented at the three day hearing
will have to be transcribed by stem
ographers, then the Corporation
Commissioners will read it and make
up their minds from that.
Should the Corporation Conmis-
sion hand down a ruling distaste-
full to the public utilities company,
the company can appeal to the
state supreme court. Such action,
if it should be taken, might delay
a rate revision for many months.
Formal hearing of the application
of the city for lower electric rates
opened at 10 o'clock yesterday morn
ing at the courthouse. After being
in session for about one half hour
the hearing was transferred to the
city hall auditorium, because OF
hanmering on the roof of the
courthouse making it almost i'm
possible to learn what was being
said in the courtroom.
Corporation Commissioners Amos
A. Belts and Charles R. Howe. are
presiding at the hearing. Commis''
sioner Loren F. Vaughn is absent.
The city is represented by City
Attorney James v. Robins and En-
gineer G. R. Kenny of Los Angeles.
Besides James R. Malott, the Pub I
lie Utilities Consolidated Corpora
ton has several representatives pre-
sent, including P. r. Nenzel and /
M. I. Reid of the Loveland En-
gineers of San Francisco, and W.
H. Grove, local manager. Nose
Drachman of Tucson, receiver of
the company, is also present.
Robins Opens Case
City Attorney Robins opened the
hearing for the city by stating that
the position of the Chamber of
Commerce and the Mayor Of Nogales
are fully set forth in allegations
filed with the Corporation Com