The Daily Alaska empire., 1946-10-19
COUNCIL 0k'S
 PURCHASE OF a ELECTRIC co.
AEL&P Proposal Accepted Without Dislussion-
 Streets Condemned

City ownership of the electric utility system here came step closer last night when the City Council, by to vote, accepted the proposal of the Alaska Electric Light and Power Company giving the City of Juneau an option un- til April l, 1947, to buy out the company's utility holdings for $500 900.
 i According to the terms of the resolution submitted by the light company and last evening adopted by the Council, previous rate CT dinances will be repealed and a compromise rate schedule ordained which cuts one cent per kWh off 1 the first 100 kwh of winter-month i light usage and one-half cent per kwh off winter light usage per month in excess of 100 kwh The l Council is to take first action on 1 the new rate ordinance at it's next meeting, but the slightly lowered rate will go into effect on Novem- i Der 1
 Court Action Dropped l It is also agreed that all Court proceedings pertaining to the rate reductions enacted by the preced- ing Council will be dropped. If the purchase terms are ratified by the ln City will have 180 days after that date in which to complete payment in full. No action was taken last night toward setting a date for re- ferring the purchase to the voters. April l, 1947, is however, the date of the next regular City election. Holdings to be transferred to the City under the option include all AEL&P real estate, water rights, shop tools, line materials and re- pair stocks. Reserved from this sale are items of merchandise off, cred for sale in the company's re- tail store here. In supplementary offer, the company suggested it would be willing also to sell out it's merchandise at an additional price yet to be fixed. The Council how ever, did not act upon that supple mentary offer.
 Acceptance of the AEL&P propos- al was moved by Councilman R. H. Williams and was seconded by Councilman James Larsen. The vote was taken without discussion in the climactic action of the eve- ming. Councilman Henry Sully was mot present when the utility vote was taken.
 Parsons Recommends
 Immediately after the vote, form CT Mayor Ernest Parsons, who last year spearheaded the move to take over the light company, compli- mented the Council on it's handling of negotiations with the utility company. From the larger than usual audience, Parsons added that he hopes the present administra- tion will now go ahead and ar range tor a bond issue to cover the purchase, so that the voters will be presented with the com plete proposition including the costs of financing
 Parsons pointed out that Juneau will now have to establish a finan- cial rating and a survey to accom- plish that will take time. There for, he said it is advisable for the Council ta take immediate action on it.
 Mayor Waino Hendrickson prom iSed that a committee to look into that side of the matter will be named in the near future and pre- liminary steps taken. City Attor- ney Howard Stabler suggested that procedure be discussed with Walter A. Stuart. MT. Stuart, special Util- ities Engineer under the Parsons administration, is now acting fcr the City of Sitka in similar pro- ceedings.
 Library Strip Bought ,l
 Before taking up the utility mat ter, the Council last night disposed of various other items of business. including approval of purchase from the Memorial Library Board of triangular strip of the library lot, to be used for widening Fourth
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