The Daily Alaska empire., 1946-03-23
l946 FISHING REGULATIONS ANNOUNCED

uleS all uIlS OJlici WloC ouPtSSA 'SNs Stuart's remarks relative to ac- counting procedures followed.
 Cooper agreed that Stuart had applied standard rates of deprecia- tion in his exhibits. However, though replying to Stuart that it would appear advantageous for the light company to keep separate ac- counts for merchandising, Juneau operations, Douglas and rural areas, when s6-questioned by AEL&P counsel H. L. Faulkner the CPA hedged declaring he has not suf- ficient knowledge of the AEL&P setup to advise whether the con- siderable added bookkeeping costs would be Justified. Stuart has maintained throughout the pro- ceeding that light company ac- counts and reports to the City are misleading because the four divi- sions of operations are not tallied separately.
 Cooper answered Stuart and held against Faulkner that the intan- gible good will'' in his opinion should not te valued for rate pur- poses except for the actual expen- diture to obtain it. He added, though. that in case of sale it would have considerable value.
 Undivided Profits
 There was much discussion con- corning the 43,48341 in surplus and undivided profits shown by the company at the end of 1944. This amount was read to include re- serve for depreciation of $2S6, O86.35. Stuart has frequently condemned the company for not keeping a se- parate depreciation reserve fund, but it has been brought out that there is no status requiring 1t.
 At the conclusion of Cooper's tes- timony and just before the Council was tuned up for the actual fixing of rates, attorney Faulkner cau- tioned the Councilmen that the annual reports the company IS re- ouired to file with the City each April are va.-eless for rate-making purposes. He declared the statute requiring them is "a half-oaKed law, because it is too vague. It just calls upon the company to iternize properties and equipment used in furnishing electric energy with valuation placed upon them. The values shown, he argued, may he arbitrarily fixed and are entire ly a matter of opinion, the usual shcwings being estimates of mar ket prices. Depreciation as such does not necessarily enter into these reports, he held. The attorney also said that where depreciation has been shown on the reports to the City it is obviously wrong put that does not keep the reports rom conforminp to the law. GA pre- hearing statement by Mayor Ern- est Parsons had declared the re- norts furnished the City by the company do not comply with the lawD
 The light company has been crit- icized during the hearing, ny otu- art for including minor properties leased to the Standard Oil Com pany in it's capital assets while no. reporting the $500 a year recelVeo in lease revenues. Faulkner agreed that those particular properties should not have been included Ill the reports to the City, but, reler- rinp to the Gold Creek water rignt valued from s2OO,000 by Black ana veatch to more than s45o,oOo by Consulting Engineer Henry L. Cray had not been included whereas II and other properties outside the city limits should have been.
 Purpose of Reports
 Navor Parsons asked what is the n,,rpose of the annual reports II they are not useful for rate pur- noses? Faulkner replied that tneli n,,rpose is questionable-they couio he for assessment basis ana nave been so used.
 The attorney added that he ne- ueves the reports are generally mite accurate as to operating eA- nsnses On that statement he was cba,,enged by Stuart, who agaiil claimed that continuing to the year ,o45 the reports have shown capi- tal additions as maintenance cos.S u,;th the result that customers pay tw;ce on ti.em. Stuart said that onerating expense reports by the company have been off as much as s40,0O0 yearly.
 Faulkner only answered that ne believes the reports accurate though they may not conform to some of Stuart's theories.
 Stuart then closed the testimony for the time by deprecating the contribution of Douglas to the building up of the AEL&P facih- ties. The engineer cited comparative figures on lights in the cities oi Douglas and Juneau in the year 1908. showing about twice as many in Juneau as in the town across the Channel
 Stabler then began to outline the Councils duties in arriving at fan rates for the AEL&P service within