Nogales international., 1933-01-11
APPLICATION OF NOGALES TO
ENGAGE in POWER BUSINESS
HEARD BY STATE COMMISSION
Whether City Of Nogales VIII Establish Municipal
Power Plant WIZ! Probably Not Be Known
For Several More Months

torney James " Robins as witness
for the city.
The Mayor said that if the Ger
| tificate is granted, the city in en-
gaging in the power business, would
form committee to be responsible
for the obligations entailed in in
stallation and operation of NUM-
cipal plant.
| Chairman Belts inferred that such
procedure, as outlined by the May
or, would not be municipal.
The Mayor also said that anoth-
er plan of the city is that of rent
ing a plant from the Fairbanks
Morse Company, rentals to come
out of earnings of the proposed
plant.
Belts asked the Mayor to pro-
duce correspondence from the Fair
; banks Morse people in regard. to
installation Of the plant. The May
or produced one letter from the
Fairbanks Morse, said letter having
to do with a small unit for street
lighting system only and in no way
described or proposed to install a
plant for general distribution of
! electricity to the citizens of No
/ gales.
Mayor Karns declared that in his
movement for a municipal plant he
has the unanimous support of the
City Council and that he thought
80 percent of the people of No
gales are back of him.
The Mayor, upon cross examina-
tion by Attorey Duane Bird, repre-
senting the Public Utilities Consol-
idated Corporation told of his car
eer as a business man from the
time he lived back in the middle
west up to the present time. He
said the city, with its own plant,
could produce and sell electricity at
a rate much lower than that now
being paid.
1t was brought out at the hearing
Saturday afternoon that the city
might try to buy the present plant,
if the certificate is granted. The
Mayor said there's various ways in
which the city could go into NUM-
cipal ownership. ''The two fran
chises under which the present
company is operating has clause
saying that if the city elects, the
city shall appoint an engineer, the
company an engineer, and the two
shall appoint third engineer, and
the three shall decide the valua-
ton of the present plant. Bonds
would be secured by receipts from
operation of the plant, said the
Mayor
During Saturday afternoons ses-
sion Attorney Bird referred to the
city's financial condition when
bonds were mentioned.
Citizens On Stand
On Monday morning number
of local citizens, having been sub
poeaned by the power company
were placed on the stand by Attor-
.ney Bird.
Among the number were Harry
Narcotic, manager of the Montezu-
ma Hotel; w. E. Jackson, manager
! of the Bowman Hotel; E. A. Tit
comb of Roy e. Titcomb, Inc; Fred
Lohn of the Lohn Studio; Sam
Capin, manager Of La Vile de
Paris; H. R. Pond manager of the
Nogalcs Steam Laundry; Dan Folts
Of the l6caT Ford agency; w. Il.
Macgregor, manager of the Western
Union Telegraph Company: Craig
- Eottinger, publisher of the Nogaies
4AAOOA AAclCAOA4Q4 ~ w. h0CS w Ga " AA1e~AA
agcI of the Hotel EvaLs; Jean Ar
n n,2rd manager Of the Fox Nogales
q Theater; and Pete Malas. manager
cf the Palace C:.la
n These witnesses testified tina t the
h service rendered by the Public
c Utilities Consolidated Corporation
the past year was adequate and sat-
, isfactory.
g Malas testified that he has been
n paying his bill every week and there
= was much laughter when City At
torney Robins asked him if he would
a like to pay it every day.
o Armand Testifies
S Jean Armand was on the stano
IS for quite long tine. He said the
d service has been very good but ne