The Daily Alaska empire., 1946-02-02
PRICE TAG ON LIGHT C0.IS MILLION HALF
Mayor Denounees A. E. 1. &P. Co. PoIieies-Rafe
 Hearing Is Sci

were nigh Jolted out of tnelr seats last night - as were members of the Council audience = when asking prices for local utility properties were read off.
 Price tags, as written by the own CTS, are:
 Alaska Electric Light &
 Power Go. ....--...-...-...-..S Sl ,5OU,OO
 Juneau Water Go. ....... $2l3,000
 Nelson Water Co. ..... $ 15,000
 All were leash prices except that Juneau Water Company, owner R. P. Lewis, in wiring his take it or leave it" offer, stipulated that he would accept four percent bonds The Nelson Water Company sales offer was for it's entire property but with September 1, 1946, dead line.
 The amount asked for the electric utility does not include two cars stocks of maintenance supplies or merchandise. The supplies were of- fered at their unit costs in addition. The light company also asked con- sideration for present employees.
 Mayor Tn Fighting Mood
 Mayor Ernest Parsons apparent ly was worked into fighting mood by the valuations put upon the AZ L. g. P, and Juneau Water Company properties, as he launched into an excoriating statement and asked the Council to decree February 25, al 7:30 o'clock p. m, for a hearing to reset light company rates. No ac- ton was asked on the water firm as it's franchise is soon to expire and it's rates are considered reason able.
 The Mayor also announced that the appraisal report of Kansas City engineers Black and Veatch has been asked but not yet received. He stated that he would call special meeting of the Council when the Black and Veatch report does arrive so as to get down to immediate ac- tion.
 In reply to milder comments of some of the Councilmen, notably John Young, that the utility tags had been written purposely high for bargaining, Mayor Parsons declared his recognition of that fact, but edded: They won't get down. to rock bottom until we show them that we mean business" He fur ther alleged that he knows the list of equipment set forth by the light company is padded" and is contl- dent that the Black and Veatch ap- praisal will show "big difference.
 Assure Full Value
 ,"I want to make sure" the Mayor vowed, that the people get full value out of what has been done this term" If a reasonable purchase price is not obtained, i've will get reasonable rate" he concluded
 Councilmen took exception botf to the Mayors surprise denunciatior of the AEL. & P. Go. and to his proposal to call a rate hearing i'm mediately; Councilman Harry Lea on the ground that the Council members should have had advance opportunity to confer with special Utilities Engineer Walter Stuart on his data regarding the light com pany before being asked to vote or rate hearing.
 Councilman Ed Nielsen objected to the Mayors flashing statement; declaring there is no way of know ing if, or how much the price set on the electric utility is out of line un- til the appraisal report is received T don't like to start fighting With anybody before l sit down to start negotiating with them," he remark ed.
 Asked to compare the one and one half million dollar price with the assessed valuation of the light com pany, Engineer Stuart put the firm taxes at around $8,000 and it's as- sessed valuation at about $400, 900.
 Councilman Young was dubious about there being enough time fol the Council to prepare itself for rate hearing before the date asked
 Reset Rates, II ...
 Councilman Don Skuse declared himself definitely in favor of re- setting rates, but only in case nego- tiations for purchase fall through However, expressing that no harm would be done in voting now for rate hearing, if it can be called of if not needed. he put the motion, tt go oyer the light company's rate: