The Daily Alaska empire Newspaper, February 26, 1946, Page 8

PAGE EIGHT RATE HEARING OPENING HITS TROPIC PITCH (Continued from Page One) SAN FRANCISCO (34 Pac. p3s0), the identic > was before Supreme Court of California under a statute i to the ka law That case involved the fixing of water rates by Bo uper- visors for San ancisco That k is equivalent our city council. After a h ! of Supervisors fixed ti and passed an ordinance - A lower court held that the ordinance fixing water was invalid without the may sig- nature. The Supreme Court af California, in unanimous decis- ion, reversec lower court, and held the ma was not a member of the Board of Supe rs and that he had no power to veto an or- dinance fixing water rates, and that his signature thereto was not necessary Full Council Present The full membership of the Coun- cil was on hand for last evening's opening of rate sessions, while there in answer to subpoenas were AEL&P Manager W. S. Pullen and Cashier C. B. Holland with Attorney Faulkner Proceedings were opened with the introduction by City Attorney How- ard D. Stabler of four exhibits evi- dencing that the hearing had been called in accordance with the pro- visions of law; a point conceded by Faulkner Introduced were 1—The Council’s duly passed mo- tion of February 1, calling the hear- ing. 2—The actual notice of the hear- ing with return of its service by Chief of Police Leonard Williamson upon AEL&P Manager Pullen and certificate that it had been posted as required 3—Publisher’s affidavit attesting to publication of the notice of hear- ing 4—A subpoena served upon Pullen and Holland requiring their ap- pearance at the hearing and sub- mission of specific records of the company. : | To Summon Expert Immediately following the formal opening, light company Attorney Faulkner moved that the hearing be continued for two wecks to per- mit the company to have present a qualified rate expert, Henry I Electrical Engineering 10 has ma Gray, Seattle Consultant praisals of t light company prop- erties here. Though the Council voted to proceed immediately with the hearing, it was later informally agreed that the company would be assured opportunity to have Mr e two ap- tion to carry on with the hearings now was Councilman Harry Lea, had put himself in a position where who stated his opinion that any “it seemed to me” he is prejudic- business should be given a chance'ed when Parsons made his state- to call an expert on its behalf./ment to the Council two weeks C torney Stabler replied that ago. the company had already been given| The Mayor then declared the| statutory notice company’s A full transcript is to be made, with the that he feels he can conduct the and company splitting the hearing impartially and in any stenotypist's bill. It was indicated case has no vote except in a tie. | that the rate regulating sessions| Councilman R. H would extend over some weeks. En- gineer stated that he figures mett, then moved that the M:\yorv—-:Mr_ Pierce, director of = Seattle to sell by condemnation proceed- |1ates, thereby demonstrating that hi; n’s for the City will as the executive head of the City Youth for Christ gave a short ad- ings. he has made up his mind in ad- require four sittings. government—conduct the meeting dress outlining the nature and 11 “Affiant :tates that the com-]vance and could not qualify as an | Mcet Thursday Night in the usual manner. ;scope of . Youth Rally activities.'nany' has not at any time replied | impartial judge and decide the is- Intervals are to be allowed be-| Voting “yes” were: Willlams, pictures of the group were taken.!| . plicly to the mayor's attacks and |sue solely on the facts and evi- tween he s in order to allow Young, Grummett and Skuse. “No":| The directors of the local Youth| paives in the press, over the radic | dence which will be presented.” | time for transeribing and last Lea and Nielsen |Rally wish to express their sincere|.; otherwise, and it has not at-| 13. “Affiant lso states that he| night's two-hour session was ad- Stuart’s Valuations appreciation for the kindness and {etnpted m‘ ;mls er his misleading | 148 been advised by the company’s journed until 8 o'clock Thursday With the Mayor once again courtesy of the Methodist church ,,i untrue statements and half | counsel that Mayor Parsons will be evening, February 28; the evening formally ensconced in the chair, and its pastor, the Rev. Robert'|.ine for the reason that as early | called by the company and sworn before the next regular Council the hearing resumed with the call- |Treat in arranging to make their| . . e orfidals of tho I8 @ ‘Witness and ‘examined In this meeting of the rate pro- In reply to query by Stabler, At- that were Faulkner stated pany ledgers subpoenaed hand and would be inspection between hearings at light company office. One ledgar and one old journal for ly destrdyed, while the mass cancelled checks demanded are now in transit from the States Next in order. came the pany’s motion to disqualify Mayor from presiding lengthy statement in support of the torney at com-= available for the old asked were reported missing, probab- of com- the Faulkner’s motion was interrupted at one point by a question from the Mayor: “What point are you trying to make?” Faulkner gave the apparent ans- wer: That it is contended that Mayor Parsons is not qualified to vote in the rate action and that any portion of the action in which takes part will be “null.” Contentions conclusion City Attorney At the statement, Stabler of Faulkner’s queried his legal colleague: Do you contend “that this meeting js not feeling that the Mayor clared his ing of Engineer Stuart to submit' valuations he had put upon AEL&P | land holdings. i Delving into past history, back to the founding of the company, | Stuart gave his reasons for cutting | the company’s own reported land valuation of $32,82833 down to a| total. of $9,649.81. included three major itms valued at: Office and Sales Building site, | $4,468; power house site, $1,819.43;' Second Street sub-station site, $1,777. In setting his value on the Office and Sales Building Site, Stuart al- | lowed only 65 percent of the pur-| chase cost of $6,874, because, he said, the building is subject to use for merchandising, Douglas and rural service and only holdings con- tributing ‘directly to the supplying of electric power within the limits of Juneau are subject at the pres-! ent hearings Stuart called “pure water” the difference between a paid out $125 and the light company’s own valua- | tion of $14,750 for the Power House site. In support of that conten- tion, he gave his opinion, supported, ' , he said, by Court rulings, that re- regularly called? The answer tc that no. Do you contend that this Council does not have power to fix rates? cil, not the Mayor, has that power Do you contend the May have the right to preside? Yes. Do you contend this Council is not cting according to law? This Council is “not acting at 21l I haven’t heard a peep from the Council yet.” Again no, the Coun- yor does nok Answer— placement costs or present values, have no bearing in a rate hear- ing; that the rate base is original cost less depreciation i Faulkner suggested that the hear-' ing might get along faster if Stuart confined himself to the facts, that there are all sorts of Colirt opinions as to. rate base and that he and . Stabler were there to look up legal opinions, ! is to offer another phaw“ Faulkner elaborated: There is no _ Stuart question but that Parsons is pre- of his company valuations when judiced against the company. Aside Dearings are resumed Thursday. from that, “I shouldn’t think he'd e ol = want to sit.” . . In reply, Stabler admitted that WCSC Serng C”’(le the company's point might be well taken “if he votes Meets Tomorrow Eve Attempt to pass the issue qwere The regular meeting of the Wo- met by Faulkner's insistance that men’s Society of Christian Service the motion be acted upon right Sewing Circle of the Methodist then. Court review could come Church will bé held tomorrow eve- later, he remarked. The Mayor then declared his pos- ition: That he did not believe he Gray appear before the proceedings should “step out” unless the Coun- would be closed. Voting the only “no” on the mo-' $000000000000000000030000000000000006000000¢. EGETABLE YARIETY SHOW 0000000000000000000000000000000000000000000000000000 it ANOF ning at 8 o'clock at the home of Mrs. Andrew Robinson, 201 Foshee Apartment, A cordial invitation to attend is cil asked him to extended to all members and Councilman Ed Nielsen then de- friends. 900000000000 W FRESH Fosfmonss vy g PRop Wyp} | _Even Spinach and Bananas Just Call 16 or 24 Free Delivery LEADERSHIP... 3 THROUGHOUT 14 YEARS IN ALASKA “Pnats” © Multi-engined aireraft © Multiple crews © Stewardess service ® Hot mi © To link Alaska with Seattle © Two-way radio com © One-day service—Seattle to Nome © To be certificated for R leg KETCHIANoa ] HOTEL ELEPHONE 1 ~§ N AMERICAN WORLD AIRWAYS 0 6 THE DAILY ALASKA EMPIRE—JUNEAU, ALASKA — , F‘éfll lowsh iA;; 7Di|71n'er;_ [ ‘Honors Pierce, Shan A fellowship dinner in honor of social hall of the Methodist church last night at 6 o'clock. fine facilities available for the rally. e SECOND YOUTH RALLY . not to open faith for the purchase of the com- pany’s business, Stuart’s ngure1 Another big Youth Rally packed and destroy its business if possible; IS SCHEDULED TONIGHT | | full of entertainment for young|? people will be held tonight at 7:30 o'clock in the Memorial Presbyter- ian church, Bob Pierce and Willis Shank. will be on hand to handle|} another live evening of fun and ¢ inspiration. This program promises to be even more interesting than the one last night. Shank may display his bag of magic tricks as well as give more | good musical entertainment. R e WYOMING COUPLE HERE Mr. and Mrs. Roy Conners of Laramie, Wyo., are registered at the Gastineau. PSERIRS A SULRE FROM FUNTER Mrs. H. Hargrall of Funter stopping at Hotel Gastineau. —— e FROM PETERSBURG Guests at Hotel Gastineau are Perry Vernon and L. F. Elkins of Petersburg is | B Pullen_(harges Mayor As Compeitor Seeks City War on Light Co. (Continued from Page One) |city’s own appraisal had been sub- mitted. There upon, without wait- !ng for the report of the Kansas +’ity appraisers, who had been ‘em- ployed at a great expense to .the taxpayers, and without any counter offer to the company, the Mayor read and published his attack! on +he company, which was printéd in jthe Daily Alaska Empire on Peb- ruary 2, 1946, and which contains | many false statements. . . . .. 4. “His course of conduct makes {1t apparent that he was not acting i’n good faith in negotiating with | the company to purchase its pro- i perty, for, before receiving the re- lrert of the Kansas City appraisers !and before permitting the company | to compare it with their own ap- praisement, and hefore making any counter offer to the city, he pubnc-! v attacked the company whose property he claimed he was seek- | ing to purchas» and with whose of- | “Ivciflls he was claiming to nego-' tiate. . . . .. o | Shows Prejudice 5. “The statement which was; read by Mr. Parsons before the: ccuncil on February 1st and pub-, |lished on February 2nd, clearly| shows his prejudice against and animosity toward the Alaska Elec- | tric Light & Power Company. It is replete with false and m)sleadingi assertions. . P H 6. “He says the officials of the | ;(:ompany refuscd to cooperate with | (him, but the records show just the |contrary and that they were doing, {their utmost to furnish him all in-, formation requested, notwithstand- {ing the fact that he and Mr. Stew- | iart have persistently for many months harassed and annoyed the !rnmpany's employees, interrupued. | their work, iuterfered with their public service and maintained to- ward the company a general course | of antagonism sand warfare. . . .”| 7 “He says the company has i made misleading reports to the city. This statement is not true, and evidently wha' he passes off as misleading reports consist of noth- | ing else than a disagreement with | Mr. Stewart and himself on the- ories and not on facts. . . . " Ammosity 8. “The mayor’s animosity to-' ward the company is further shown | by the fact ihat notwithstanding the employment. of Mr. Stewart for | many months, ot a considerable ex- pense to the taxpayers, and the; employment of Black and Veatch | at a yet undisclosed salary or iee,! {ne has never approached the com- pany at any time regarding rates. His whole coutse has consisted ol" attacks on the company and its stockholders and its management. He has never discussed with any one representing the company, nor complained of a single inequity in the rates, which were set by the |c:ty council in 1922. He has not; jmade any offer on behalf of thej 'city for the company’s property. | He has simply put the city to a’ great expense, seemingly to pur-, chase for it a Jaw suit.” 9. “Mr. Parsons has on many oc- casions, after his election as rhay- or as well as bcfore, demonstrated refore the public, in the press, over' the radio and on the street corners’ 4 his enmity toward the company to tuch an extent that no reasonable . [person couta possibly 4t the very outset of the mayor’s motion to be just anoth- Bob Pierce and Willis Shank was Wwar against the company, before er attempt to delay the proceeding; lenjoyed by approximatey 50 in the opening any negotiations for the | purchase of the company’s property land Local ministers and their fam-|any incuiry abont values or price, Willjams, sec- jlies, youth leaders and Christian|b onded by Councilman Stan Grum- workers were among those present {or was going iv force the company its counsel at that time that in all | Jikelihood the matter would even- | tually culminate in the company’s | in function with the mayor in the/ DRINK KING BLACK LABEL! e § FEBRUARY 26,1946 | e e consider him o be qualifi)d as an impartial wdge any mor: than could a com- dlaining witness in a murder case. Force Condemnation 10. “Affiant further states that role of complaining witness; and inence to the courts, and they were advised that it would be highly ‘mproper and unethical to seek to influence the trial of the issues, through the public press and over the radio, in advance.” 13 % . rhat in the hearing wvhich has been ordered hefore the: city council for the declared pur- pose of regulating the rates of the Alaska Electric Light & Power Company the inayor has declared that the couucil will lower the business and before making stated public! y that he, as may- s last May ompany were advised by their ounsel not to do so, for the rea- on that in his opinion, the pur- hearing, and no man, under the provisions of the Constitution of | the United States, can ever quali- iy as both witness and judge. “WHEREFORE, affiant prays, on behalf of the respondent, Alaska Electric Ligh* & Power Company | tnat the Mayor of Juneau, Mr.| Ernest Parsons, be excluded by the council from participating in | these proceedings except as a wit- ness, under oath and subject to| | cross examination. ose of the mayor was apparently negotiations in good but to injure it nd the company was advised by eing ordered before the city coun- il, sitting as & rate making body | W. 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