The Daily Alaska empire., 1947-03-22
COUNCIL WILL GIVED0pE0N
 UTILITY ISSUE
Walter Stuart Hired for h. vesiigdfion of Moment
 ous Problem" Here

Juneau City Council in a spirited session last night moved to employ Walter Stuart, electrical engineer to make an investigation and re- port from the books. of Alaska Electric Light and Power Com pany for 1946, showing accurately the earnings, breakdown of oper- ating costs and margin of profit
 Stuart will be paid the regular fee for such services, $35 day A top limit Of $500 was added to the authorizing motion, made by Dr. R. H. Williams.
 Mayor Waino Hendrickson read to the Council and citizens at the meeting a report made up by City Attorney Howard Stabler. It was taken from the evidence submitted by MT. Stuart, acting as investi- gator for Blach and Veatch, con sulting engineers, at the rate hear ing last year
 Stabler was asked to complete his report for publication, with the addition of figures showing the Federal income taxes and Federal Light and Power taxes, also any other taxes which would not be paid if the utility was under municipal ownership.
 In the report would also be the taX-reported earnings of the com pany for 1946, as well as for the years covered in the Black and Veatch report made last year by Stuart.
 Rev. Robert Treat, representative of the Lions Club to a five-mem- Der committee composed of ap- pointees from Rotary, Kiwanis, Ju- neau Womans Club and Lions, in- troduced the proposal to appoint an impartial person to go over the Light Company records and make a report to be published for public consumption
 The petition to the council made three points. They were, first, to retain Walter Stuart for the in vestigation; second, to authorize access to the AEL and F records and third, to authorize publica tion of the findings before the election, April l.
 Mayor Hendrickson countered the petition with the report which had been made at his request by Stabler The report was read, then discussed by Council members and voices from the audiences, as well.
 Stabler's figures were challeng- ed from the standpoint that they did not give breakdown of the total listed operating costs. It was brought out by questioning that Internal Revenue taxes were in- cluded in this total. also Federal Light and Power taxes.
 The attorney quoted the Intern al Revenue tax of the company at $55 ,99115 for the year 1945, add ed that this figure might not compare with 1946 or later years because of changes in tax laws labor costs and other expendi- lures which might enter the pie ture.
 Stabler also pointed out that total operating costs for the whole utility system including Douglas and rural distribution, are put un- der the operating cost heading, anc thus pad the figure presented fol Juneau on the AEL and P's con- pany reports to the city. This results in what is probably mis- leading cut in the margin of pro fit, said Stabler, agreeing with MT Stuart on that point of his argu- ment.
 Speaking from the audience were Curtis Shattuck, Rev. Treat, Jack Burford, Don Foster and Felis Toner, George Folta, Trevor Da. wis and Garland Boggan. Saic Don Foster, I'm Bureaucra I'm also a property owner and taxpayer in the City of Ju. neau, and want to know tht facts about this whole situation I'm in 'confusement.'
 Councilman Williams. made th' motion to engage Stuart to com. pile reports for publication iron the books of the Light Compan! and for the City to pay him S35 ( day for his services or total O not to exceed $500. An amendmen by Larsen to have Certified Public Accountant check Stuart figures was not accepted, and tn, motion vas put to vote. Voting yes were Councllmel ]