The Daily Alaska empire., 1945-07-21
LEA BATTLES FOR
 AppRAEAL DELAY
 AT COUNCIL MEET
Move 10 Postpone Nego- tidtj0ns with Black &
 VeatCh Defeated

meeting resembled pacifist gather ing. As usual, what arrows were fired at the dove of peace came during recurring discussions Of the public utility issue.
 Councilman Harry Lea loosed a few barbs that fell short of the mark. The Councilman shot his big bolt on a move for reconsideration of the vote taken at the July 6 session to neg eotiate with the Kansas City en- gineering firm of Black and Veatch for appraisal of utility properties here.
 After much thrashing of pros and sons, Lea gained second from Councilman Edward Nielsen. The motion finally failed of passage with only Lea and Nielsen recorded on the affirmative side.
 Councilman Lea contended that since the Alaska Light and Power Company and the Juneau Water Company have both now expressed willingness to sell to the City, the City's proper action is to sit back and see what price is placed upon the several utility properties here by their present owners, before going to the expense of an appraisal.
 Skagway, Sitka Cited
 Lea launched his attack by calling to the Councils attention recent de- velopments at Skagway and Sitka, where appraisals of utility proper ties made by those cities have brought out higher valuations than the asking prices of the owners. Light company owners at Skagway had asked $80,0eo for their facilities and at Sitka price of S90,000 had been offered by the power company owners. Appraisals had resulted in valuations of Sl70,000 and $110,000 respectively, he cited. The danger exists, he claimed, that Juneau might run into the middle of a sim liar situation of the appraisal move is pressed.
 The move made by Councilman Lea was in line with reasoning ex- pressed by w. s. Pullen, A.E.L. and P. Co. manager, in one of several letters from him outlining the light ccmpany's position, which were read to the Council.
 Light Co. to Set Price
 Following the statement that the AEL. and P. CO stockholders had agreed to sell, Mir Pullen stated that a stockholders meeting will be held to set a price on the firms proper ties. First, however, he said, it will be necessary for the light company to secure the services of an apprais- CT in it's own interest in order to determine the present value. Henry L. Gray, of Seattle, who appraised the light company here in 1888, will be engaged to bring that valuation up to date, as soon as he is avail able, wrote MT. Pullen.
 In response to Mayor Parsons re- newed request for light company records to be made available for examination by City Utility En- gineer Walter Stuart, as prelim- mary to the contemplated appraisal for the City, MT. Pullen expressed of jection to opening the companyS re- cords at this time. He offered that Ithe first step should be for the City ito get the company's price.
 Fii Appraisal Goes Further r Mayor Parsons was prompt ir replying to both Council Lea and MT. Pullen's suggestion that no mat ter what is asked by the companies it will be necessary for the City tC have its own appraisal in order tc te in position to decide whether the asked prices are just. Besides kthe Mayor added, the purpose of the ieppraisal is not merely to determine selling price. It goes much fur ther than that, he said. The overall condition of the properties will bt determined, needed improvements revealed, rate structures examined and many other facts disclosed that the City should know before it ven- lures into the public utility field. 1 Councilman Don Skuse supported the Mayors position-at least where the Juneau Water Company apprais- al was concerned-by declaring hi! feeling that the Council would bt "derelict in it's duty" if it did no take steps to prepare the way fol Fthe people to vote next spring, at tht (COnfinnrd on Page Three)