The Daily Alaska empire., 1946-02-02
The Mayor's Statement

The Mayors Statement
 Mayor Ernest Parsons last evening delivered this prepared declaration before the Common Council of the City of Juneau:
 Tt is with considerable regret that I make the following statement, but I feel the people of Juneau are en- titled to the truth concerning an intolerable situation in regard to their public utilities.
 The City Council has tried ever since it was elected to obtain a price from the owner of the cleo trio and water utilities and with the exception of the Nelson Water Company, who submitted their price within a reasonable time, we have been put off with one excuse or an- ! other until now. With air facilities, it does not take 10 months for a company to settle on price.
 T feel very strongly that the price submitted by the Alaska Electric Light and Power Company is fantastic and unreasonable and is in line with their policy of not sub mitting correct reports to the City for many years, in order to conceal their exorbitant profits,
 The Council. following the man date of the people at the last elec- tion. desires to buy the utilities if they can be purchased at a fair price, rather than reduce rates; for the simple reason that the City can make much more profit by buying the utilities than by regulating the rates.
 People Be Shocked
 T realize that much of what I have to say will be news to the peo- pie of Juneau, will deeply shock them, and will greaty strengthen their resolve to help the Council settle the intolerable electric utility situation.
 T wish to state that the infor- nation back of my statements has been carefully checked by account ing, legal and engineering talent and will be thoroughly aired in detail in the rate hearings to be held in the near future. We feel very confi- dent that the reduced rates to be set will stand the test of any suit that may be brought.
 Reports to the City, starting with the first one in 1885, feel have not been true or correct and are so far from complying with the law cov- ering these reports as to make them worse than useless, as they have misled the City government. I feel sure no city under the American flag has been so arrogantly treat ed for such long time as we have, regarding our electric utility. '. Not 'Hdd Cooperation
 We have not had real coopera- tion from the light company, as several times they have refused rec ords for Black and Veatch and MT. Stuart, and we have had to threat len Court action in order to see rec ords we are entitled by law to in spect. Furthermore, several letters written months ago by your Mayor, requesting certain information, have not even been accorded the courtesy of an answer, nor the information i given.
 Note-Mayor Parsons revealed following his statement. that one of the items of information requested and so far not submitted by the A, E. L. and P. Go. is that firms in come tax for the year 1944)
 T feel very sure We can show that the light company has taken out of the City many hundreds of thou sands of dollars of profits, in excess of profits which would be earned at fair and reasonable rate, supported by misleading reports to the City Council, and are still doing so.
 Profits La,os Clear
 "The laws regarding the allowable profits by public utilities are clear and well known to utility operators and attorneys, namely, that since 1898 they are entitled to make a fair return or interest on the replace ment cost of their plant, less depre- citation, hence this can be readily calculated by those who know util- ity operations. However, since a ] U. s. Supreme Court decision in l944, it is well recognized in utility circles that this decision changes the utility situation in. that they are NOW only entitled to a fair return on their ORIGINAL COST, less de- preciation. which generally. and es-