The Daily Alaska empire Newspaper, March 28, 1947, Page 2

PAGE TWO REPORT BY HOWARD D. STABLER, CITY ATTORNEY, TO THE CITY OF JUNEAU COVERING INFORMA- The foregoing income tax for 1946 was less than the income tax paid in 1945. The federal TION RELATIVE TO THE Al KA ELECRIC LIGHT |income tax for 1945 was $55,991.15. AND POWER COMPANY. THIS REPORT UP TO 1946 (The reduction in the tax n}l]ay lb" . accot r because g Te- IS BASED ON INFORMATION PRESENTED BY MR. |2ccomect for becelee of the ™o STUART AT THE RATE HEARING BY THE CITY OF |jta1 stock tax, declared value ex JUNEAU IN 1916 cess profits tax, and a slight re R duction in the tax rate. Taxable Company's acconnt- | income would, of course, vary from March 22 no reason to qu year to year and so affect the 1 ey of the Company’s | amount of the tax The Mayor and City Cour figures for what they represent.| The operati cost for 1946 City of Juneau, Alaska This table shows in dollars and|against the above gross income of s nts, for the several years rep-|$320517.23 from sale of current, resented. the depreciation, repairs! rent and pole contracts was $266,- maintenance, gr revenue in- | 067.1 leaving a net revenue of cluding bond interest, net revenue, g3, 04 from the sale of current, and dividends, of Alaska Electric{rent and pole contracts. The re- Light and Power Company, &ac-!mainder of the net revenue shown S cording to that Company's account-|for 1946 was from merchandise ol e City ©f fing record ¥':J‘ and revenue income from s { 5onds oncerning The ope €OsLs are noi snown public u such; but the difference be-| The proposed purchase price of nd Pow een gress revenue and net rev-ithe AFL&P Company utility is fix- enue shown should reflect operat-led at $900,000.00. This purchase s a table vears ing costs, including depreciation, {price is to be raised by a bond 1 The fi the nd maintenance, cost of |jssue, payable solely out of AEL&P < 1941-1945 were compiled from pow rchased from the A. J.| Company revenue. If issued the FL&P ( ny's boaks of account Gold Mining Company, taxes, Wages, | bonds will be paid and retired over introduced in the 1 and other items. The gross revenue |g period of years, out of revenue before the C includes interest income from bonds from the AEL&P Company utility. ye 946 s owned by the Company; and (atiThe bonds will bear interest at a ore m for 1946) net income from!rate believed to be not less than F of merchandise sales at hereinafter 21, percent, but more probably not > of Mr. explained less than 3 percent. To retire LiGHT ALD POWER COMPANY Net nue Dividends $12,103.711 $75,229.42 $67,500.00 9,606 23 69,032.90 60,000.00 14,465.41 6.04 60,000.00 13,807.80 67,622 .81 60,000.00 1 70,098.54 70,000.00 0 67,336.33 70,000.00 k down of * s Revenue inc. Bond Inter- eals the following fa whole sytem $328, 7.00 $320,517.23 Receipts from int cn bends will not become the | y if the N merc e, and which v to the City unless the Ci merchandise busine f th $ 24,099.55 Total gress income, 194 $353,616.78 Federal income taxes paid b pany 11946) total $ 44,614.61 This fed income tax is broken dov follows Tax on income from sales of power and pele tracts $ 38,888.75 Tax in income from bonds and sales of merchandise $ 4461461 Total federal income tax o precious. ... grey worsted. .., exclusively ours.. 65.00 B Reheends Co QAUALITY SINCE /887 YELLOW CAB CO PHONE 22 Courtecus Drivers — Dependable Service 24-HOUR SERVICE the $900,000.00 bonds in 20 years would require an annual payment cut of revenue of 1-20th of $900,- 100000, which is $45,000.00 annually. [ The interest for the first year on $900,000.00 at 2': percent would re- uire an additional $22,500.00 out of |revenue. The interest would be {reduced annually in proportion to tht amount of bonds retired. If 1$45,000.00 was retired the first year, | the second year's interest would be i on $855,000.00, which, at 22 percent iwould be $21,375.00. Payments of :imur.:t would thus annually de- icrease during the 20 years in pro- | portien to the remainder of the 1 $9C0,000.00 principal owing. Pay- {ments on the $9800,000.00 principal | would not decrease, but would re- |main fixed at $45,000.00 annually juntil the $900,000.00 principal was |paid and retired. | In addition to these fixed sums | payable annually out of revenue, The City of Junean would lose an cstimated $10,000.00 in City taxes the mount of texes proposed to be {raised from the AEL&P Company by the 1946 Council at the rate hearings. If the AEL&P Company utility is purchased, a sum equal to such taxes should be set up against the utility as an operating cost and paid into the City of Ju- neau general fund. Otherwise the City of Juneau would be out of pocket that sum annually. It is apparent, therefore, that the annual bond retirement (20 years) of $45,000.00, plus interest the first year $22500.00, plus approxi- ely $10,000.00 for loss of taxes to the City of Juneau, amount to £77,500.00. The net revenue report- ed by the AEL&P Company for 1946 from sale of electric cur- rent, rent received and pole con- tracts was $63,450.04. The vre- mainder of the $75229.42 shown as Net Revenue was net revenue from bonds and from the mer- chandising department. On the other side of the picture, the city of Juneau operating sucha public utility would not be required to pay the federal internal rev- enue taxes paid by the AEL&P Ccmpany, which, as hereinbefore shown, was $38.388.74 (for 1946) on income from sale of electric cur- rent, rent and pole contracts, which would be the only source of income to the City unless it con- tinued the AEL&P Company mer- cantile business. As hereinbefore shown, the re- mainder of the $44,614.61 tax paid for 1946, names, $5725.87, was tax on income derived from bonds and les of merchandise. Whether the City would want to continue the merchandise business in competi- tion with tax paying residents vending the same line of merchan- dise is, at least at this time, un- certain. The City certainly would not have the AEL&P income from income producing bonds owned by tliz AEL&P Company. Other federal and territorial tax- es and licenses now paid by the AEL&P Company (figures are for 1946) . are: Federal Old Age Benefits Insurance contribution Territorial business tax .. United States buiness tax Electric energy tax . S Veterans’ tax (part year) Horsepower tax 1946 Total a Annual corporation license fee ... Federal tax on telegraph and telephone Territorial Unemployment Compensation THE DAILY ALASKA EMPIRE—JUNEAU, ALASKA Some of the aforesaid taxes are on the AEL&P Company mercantile business. - All of them, except- ing the corporation license fee, vary in amount from year to year. 1t not at this time certain that the city would not have to pay some them. is Whether purchase of the AEL&P Company utility would save City anything on street lighti nd light and power at the Sma { Boat Harbor is doubtful, If it did save anything, the util- ity revenue would decrease in ¥ portion to the saving. Whether operating costs could be reduced under City management cannot bhe determined until tried out. It has been reported to the Coun- cil that repairs, rehabilitation, op- erating capital, etc., would require an estimated $100,000.00 for e first year's operation by the C 'This sum, or any sum required for such purpose, would have to ¢ out of revenue from the utility the bond issue covers only purchase price. We have no sound basis for the above estimated of $100,600.00. We believe ther sound basis for assuming that dur- ing the war years, because shortage of labor and mate only necessary repairs were by the AEL&P Company; and large scale repairs, rehabilitat and improvements are becoming creasingly necessary. They will have to come out of the uti revenue. It has also been represeniec the Council that the Baranof Hote will soon be providing its own pro- duced light and power; and will also supply light and power to the Gastineau Hotel. To offset this loss of revenue, there may be taken in- to consideration light and p furnished to the recently c structed Goldstein Building, and which will be furnished the nearly completed Simpson Building, d to the Northern Commercial Com- pany's plant at the Small Boat Har- bor; and perhaps to other new us- ers. the n| 1 all} Tt has also been represented to the Council that the peak of de- velopment power production has been reached with the Alaska Ja- neau Gold Minding Company's mine and mill in operation; and that the Alaska Juneau developed source of supply plus the AEL&P Company developed source of sup- ply is not sufficient (with Alaska Juneau operating) to supply expansion in the use of light and power in Juneau and vicinity; and ’I,E’I‘TER FROM J. A. WILL ALASKA JUNEAU GOIL | THE CITY OF JUNEA | ! FOR PUBLIC CONSUM | REQUEST OF THE PUBI ALASKA JUNEAU GOLD MINING CO. | | Juneau, Alaska Feb. 26, 1947 |File J 49 ! Subject: Power. E. Hendrickson | Dear Mr This is in reply-to your letter of Hendrickson: |February 21st in which you re- quest some information and esti- mat concerning Alaska Juneau power production. As you know, the Alaska Juneau power system consists of (a) three unregulated hydroelectric plants; Nugget Creek, Sheep Creek and ‘240" Power Plant; (b)regulated hydro- electric plan: namely Annex Creek, Lower Salmon Creek and Upper Salmon Creek, and (¢) a central steam standby plant. Besides supplying power for its own use it supplies the Alaska Electric Light and Power Company with power whenever it is needed Power has been sold sir 1934 under a contract acquired from the Ala¥ka Gastineau Mining Company when that company was purchased in 1934. The amount oi power avaiiable from Alaska Junecau Power Plants varies with the season of the year. For the six summer months there generally has been a surplus of power. Once ,or twice during the past twenty years there has been a shortage of water in August that necessitated the use the company’s steam plant. However, in winter months and specially in March and the first part of April there is no sur- plus of power and there have been actual shortages of power in the past. During the cold winter months there is no power produc- tion from the three unregulated hydroelectric plants and towar the end of the winter season the water shortage behind Salmen Creek Dam and the dam at Annex Lake is nearly depleted and due to the reduced head of water pro- duces less power. | During part each winter, thereiore power for the mine and community is furnished by the cen- tral steam plant, Annex Creek plant of of lhnc- in case of expansion large and Salmon Creek plants. sums would have to be raised 10 pyring the winter of 1940 and develop more power. The basls gonin in 1941 the mine and the for such representations seems to be statements made to the Council at the rate hearings by Alaska Ju- neau representatives and others to the effect that during certain win- ter months, when the water supply is curtailed by freezing weather, there is nct enough water and steam power to supply power to both the Alaska Juneau (operat- ing) and the City of Juneau and vicinity. Statements were also made to the efiect that for short per- iods of time during Winter months the Alaska Juneau (operating) was compelled to shut down socme of its operating equipment for lack of power. The Couuncil’s recently received letter to this effect from Mr. Williams, Manager of the Al- aska Juneau Gold Mining Com: pany supports the represent k. The AEL&P Company has not enough of its own developed power to supply the City or Juneau and vicinity, and consequently buys a | large part of its power from the STABLER FINAL bt Alaska Juneau Gold Mining Com- pany. Forseeing the time when its purchases from Alaska Juneau may ke curtailed or shut off, the _ AEL&P Company, over a long per- iod of time, has wisely built up a large reserve fund to develop its cwn power. Phis is the fund now invested by AEL&P Company in bonds. This fund will not be ac- pired by the City of Juneau by purchase of the AEL&P Company utility. All funds that may become necessary for such purposes will have to come out of the utility revenue. It seems pertinent to note that the net revenue of the AEL&P Company for 1946 (until November 1, 1946 when the lower rates went i — | 15.00 82.92 1,929.43 735.84 27139 2,566.78 625.00 8,117.55 2,279.05 5,055.75 $21,684.51 BASEBALL (By Thk ASSOUIATED PRESS) Rain—lost of it—washed out the scheduled exhibition game between the Pacific Coast league San Fran- cisco Seals and the New York Giants day. | Meantime in Soutern California, |san Diego Padres blasted Frank- je Dasso for 14 hits and an easy |7 to 3 victory ‘over the Holiywood | Stars. Portland put together, three |hemers for five runs in the fourth frame to beat Los Angeles 7 to 3. And the Chicago White Sox ?\\‘ound up their P-C-L competition by lambasting the Solons, 10 % 3. in San Francisco yester-| Sacramento, GIRL SCOUT NEWS Girl Scout Trocp 11 met Thurs- day and we had a play and a party. The Apple Blossom patrol cooked and Shirley Long, Karen Hart- ness, Nancy McDonald and Vir- | ginia Nielson gave a play. We got linto the Wishing Circle and that | dismissed our meeting. NATALIE DAPCEVICH, rcporter. - e CARD OF TH S community consumed all the power th Annex Creek, Salmon Creek and the central steam plant could preduce, which w: about 11,000 KW However, there was not enough power for both the mine and t community and sections the mill were shut down for portions of the day over a pericd of several wecks. Part of that time the stcam plant was producing over 6,000 K.-W. which is its rated capacity. At that time in 1940 and 1941 the Alaska Juneau furnished the Light Company with about 1,000 K. W. on the average whereas dur- ing the present winter an average of 1,500 K.W. or more was required irom the Alaska Juneau. indicates clearly that the ity load has increased over 500 cut taking peak loads into ccnsideration. In view of the e of power in 1941 ditional load of 500 K.W. e the mine's shortage ast that amount if the Were now running. | the shortage for the mine will nc doubt be greater than! I in eflzct) and preceding years, as| herein shown, was based on the | higher light and power rates then | in efiect. In 1946 the then City Council effected a rate reduction (effective November 1, 1946), which, according to AEL&P Company fig- ures, resulted in a saving of some $16,000.00 annually to light and pow- er users. It logically follows that the utility sufiers a loss of revenue in a like sum. Black & Veach, Consulting En- gineers, employed by the City in 1946, appraised the value of the AEL&P Company property at the sum of $1,087,474.00 (reproduction | cost new); or $808,445.00 (reproduc-‘ tion cost new less depreciation); ! and in arriving at both figures al-' lowed $200,000.00 for developed and undeveloped water rights. The AEL&P Company claimed at the rate hearing $400,000.00 for’ such rights. | IAMS, MANAGER OF THE .D MINING COMPANY, TO U, RELATIVE TO POWER PRODUCTION AND SURPLUS POWER AVAILABLE PTION AND PRINTED BY JAC the increased Cit, mill and in the mine the company is considering the use of addi- tional power in order to reduce the cost of operati The amount of the additicrnal power is of course indefinite, but we think 2,000 B.W. additional might be used. Therefore, scme time after we re- sume operation and after we will have reached rormal production our existing power plants will able to supply ourselves and the community with power during a great part of the winter season. So far in this appraisal it has Leen assumed titat all the winter power plants can be dépended up- on for the delivery of power when needed, but the thirty-one year record for the 17 mile Annex Creek transmission line over mountair range 3,000 feet high show many power interruption: ranging from a few days to several weeks in dura tion. The loss of the production from Annex Creek would probably add another 3,000 KW to the short- €. To mentwn especially in snortages of power such large amounts may seem startling, but it must be 1921 remembered that between when the Alaska Gastineau n closed down, and 1939, there was nearly always surplus power. In 1935 when the excess seemed about to disappear the Lower Salmon plant, which was destroyed by fire in 1922, was rebuilt, but by 1939 the lack of excess power was again Lecoming evident. Now, with con- sumption expanding both in the community and in the mine, it ceems safe to predict a shortaze of power a year or so after the re- opening of the mine. The company's contract to su ply power to the Alaska Electric Light and Power Company runs un- til December 31, 1947, but is renew- able for five years additional, If the company’s mine is not oper- ating and its power costs are in- creased, the company may reopen the contract for a price revision. It is well own that, even in times most favorable for gold min- ing, the margin of profit at the Alaska Juneau is extremely small and full uction at all times is most vital. Electric pcwer, wh there is no excess over that re- quired to operate the plant, is tainly werth much mere to t Alaska Juneau than the revenue it would bring by selling as dom tic light and power Ther if the Alaska Junz of power due to the it would seem prog the price of s The aver ); sold un the Light Company could increass cver past yearly average if steam power were used more often much as steam power bea er price than hydroelectric power. The cost of fuel oil is another | variable and important factor which could bring about an increased price for power under certain conditions. However, at present there is ample power available and as long as there is a reasonable surplus and as long as other conditions are not too adverse, the price of power should not increase. We hope this letter answers your questions satisfactorily, and if we can be of further help. please let us know. Yours very truly, (s) J. A. WILLIAMS, General Manager fail to produce revenue sufficient est and all operating costs, as well necessary repairs, rehabilitation, im- provements, expansion and working capital, there can be but one ans- wer—the City Council must raise the rates, as every dollar for such pur- poses must necessarily come of the utility revenue. Respectfully submitted, HOWARD D. STABLER, City Attorney. TRAKOWSKIS HERE ON WAY T0 SEWARD Mr. and Mrs. V. D. Trakowski and John Penrose of Seward, ar- rived in Juneau yesterday on their return from a two months business and pleasure trip to the States., The Trakowskis, owners of the Alaska Scenic Air Service, at Sew- load. Both in the not be | _ 'employees, including the manager, "®, revenue " made, not a fair profit. out! What has been said here of the ard, are flying their own plane and AEL&P Company applies with equal | expect to leave for Seward today. force to the other two utilities| Mrs. Trakowski was at one time on the ballot—the Juneau Water on the staff of reporters of the Company and the Nelson WacerkEmpire. Company. The revenues and opera- | ing costs of the two water companies | are diiferent frem those of the AEL&P Company; but the basic facts stated (excepting figures) are Metcalf and John Langseth for substantially the same, It is pertin- | medical attention yesterday, and ent to note that Black and Veatch discharged Harry Haloff, George recommcnded that neither water Kasko and Zalmain Gross. cempany be purchased at the quot- | Government Hospital il B HOSPITAL NOTES St. Ann's Hospiial admitted C. H. .admitted We wish to thank the many friends of our late Brother Ole A. Anderson for their kindness and thoughtfulness during his illness and passing, also for the many beautiful flowers. MRS. FRANG BERG, | JACK LEE. | —adv. 539-t1 L gy Sell it with an Empire Want-ad! ed prices. {Ida Morris, Margaret Moses, John One final and pertinent fact|Luke and Fred Rueben, all irom should not be overlooked. The|Nome, and Reymond David from City of Juneau has the legal au-|Golovin. Leslie Mahle from An- thority to raise or lower public chorage was discharged. utility rates and charges. In| S 1946 the City Council lowered the | ATTENTIORN o5u:RINERS AEL&P Company rates and saved | Special meeting at the Temple the rate payers some $16,000.00 an- 8 o'cleck Friday evening. Import- nually. If the City of Juneau p -|ant business in connection with chases any of the utilities on the|the Wishing Well. i ballot and the rates now in efiect J. W. LEIVERS, Seccy. to retire the bonds, pay the inter-’ —adv, 538-t2 FRIDAY, MARCH 28, 1947 {REPORT BY WALTER T. STUART, ELECTRICAL EN- GINEER, TO THE CITY OF JUNEAU COVERING INFORMATION RELATIVE TO THE ALASKA ELEC- TRIC LIGHT AND COMPANY COMPANY | rch 26, 1947 ,could be made at small cost to in- { Honorable Mayor and Council, i crease the yearly profits about 10,000 | Juneau, Alaska. to 15,000 thousand dollars. Gentlemen: 11. Several items of expense of In response to your requesi I am rendering my report on the net operating the system during five years shown, are really substantially prefits, savings in operating costs, lower, but did not have sufficient |future possibilities, bond require- | time to calculate them, in other ments and other information deem- | wor believe profits were more jed pertinent, covering the clectric operations oy, of the Alaska Elec- {tric Light and Power Cémpany prop- | erties, if under municipal ownershin. | than shown for Juneau only. | 12, Cost of electricity purchased may drop as much as $10,000 in one year by increased electricity pro- This covers the last five years op- iduced by the company’s hydroelec- eration of area covering Juheay, | tric plant in Juneau due to increased {Douglas, and ru also if only|rainfall. | Juneau is served. rate is Profits of merchandise and bonds interest have been excluded. The m expenses incorrectly charged 0 Juneau, have had to be partially | estimated for three of the five years due to the limited time available, but are censervative, and I belicve profits are a little higher than shown overing Juneau only. 1. I have shown that Federal and Territorial taxes need not b2 paid under eity ownership as found from !experience and by recent inquiry of government departments concerned. Have allowed adequate Jepre- ciation. i.e. Profits are after de- | precietion fund allowed for. 3. 'The profits rrom cléctricity are suificient to pay for operating the system, making all reapirs; paying bond interest and paying bonds off as theyv become due also paying for ‘considerable additions to the sys- tem. 4. The rebuilding of balance of the old flume using Black and Veatch's costs new would be about $35,000. This is the only large repair that is necessary and could be spread over two years proably. | 13. A thorough greatly needed, ! 14. The present yearly horsepow- er tax of $5,055 is now paid the Alaska Juneau Gold Mining Co. and paid by them to the government, and is on the basis of $1.00 per year horsepower. Once before when the mine shut down this was reduced to 10e per horsepower, and an ap- plication should be made to have it reduced again, thus effecting a large | saving if allowed. 15. If merchandising is not car- ried on, there is more room than is necessary for utility operations, so that at no great expense, the office building could serve as a fine city building for all departmsnts. 16. I cannot pass on tie opera- tions of the Juneau Water Company as adequate financial reports were never available for study. A thor- ough study of actual costs, less de- preciation and operating costs, is necessary to determine’ fair rates and value of this water system. Am informed the Territorial law 1 quires books be kept in the tarritory, so suggest that the Juneau Water Company be required to comply with study [ i v 5. A successful way to keep utili- this. s f ties out of politics is to place all 17. Ovberating reports of the Nel- son Water Company were furnished, but “have not had time to study them. 18. While $800.000 is a high value for the electric system and its Gold Creek water right, as a business proposition, I believe it would pay for itself. I further believe rates could be lowered, but no cha should be made in rates until they were investigated for a year, to sce if advisable. 19. The much lower electric rates set last year, after long investiga- tion, could be set uv, could probably be successfully defended in court, and couid result in a much lower price for the electric comuany, if such action is desired. 20. Even if the town of Douglas takes over its part of the system, and if scme other agency would take over the rural customers, the profits, as shown, would be adequate, if Jineau only is furnished =2lectric service. 21. On the basis of an estimated 275% bond interest the yearly in- terest would be 324,750 and :f boni were for 25 years, or $36,000 paid off rly, the total would be $60.- 750 yearly for interest and priticipal payments. The average systsm prefits for last five years if under city opeartion was $132,085. The interest decreases yearly. -Suggest konds be callable after a few years, and be sold by public bidding. 22. All these calculations are on the assumpticn that the utility de- partment would pay the city the same taxes the private company did, (which for Juneau was $7,867 in '46) and that the city pay utility depart- ment for electricity. The utility department could well afford to rc- duce the rate to the city, which is under a form of civil service. 6. An economic survey, and ex- tremely complete operating’ data, covering municipal operation of complete electric system, consisting cf Juneau, Douglas, and rural area, for five years, ars reguired by in- tment houses. Some reports are also required for Juneau operations. Dun and Bradstreets, and Moody's Investors Service, require the same and mors for a ten year period, in crder to rate bonds, and a rating is necessary to get lowest interest. How future power needs may be supplied is also necessary informa- tion required. . 7. I furnished some financial data to investment houses last year. Recently inquired of them if this bond issue could be sold readily and they thought it could. 8. After merchandising depart- is charged with its proper share , there is very little profit n of expense 9. For the last company’s modern 850 k.w. hydro- electric plant in the city, has pro- uced nearly half of the electricity used in Juneau. There is consider- able unused water power on Doug- las Island and on Gold Creek, both formerly used that would advise investigating for increased needs of the city and also Lemon Creek. The Alaska Juneau Gold Mining Co. has had a surplus of power in summer from its six fine hydro-electric plants, but has been occasionally short of power for a short time in ;the spring, making it necessary to run their large steam plant. A mod- ern diesel plant, needed for part of the winter for part of the load would supply eledtricity at close to what | is paid the Alaska Juneau Gold Min- | & matter of policy. 'ing Co. now. If the Alaska Juneau| 23. In acquiring a utility in this Mine should resume operations, the | manner, no tax money is needed, in |greatly increased amount of elec- |fact cannot be used, and also the tricity sold to mine employees wouid | utility should re-imburse the city increase profits and justify increas- | for all expenses last year for the . ing the supply of electricity by the | appraisal and the rate case." city, or by the Alaska Juncau Goid Respectfully submitted, Mining Company. WALTER T. STUART 10. Engineering Electrical Engineer five years ,he improvements | March 26, 1947 PROFITS AND SAVINGS UNDER MUNICIPAL OWNEBSH:Q COVERING JUNEAU, DOUGLAS, AND RURAL 1942 1943 1944 1945 | 1046 Alaska Electric Light and : FPower Co. Net Profits from sale of e’xetrieity Savings Under Municipal Ownership Alaska Unemployment Tax . Spoical Federal Old Age Tax ... License .. : S Federal Unemployment General Expense ... Territorial License Tax . U. 8. Electrical Energy Tax .. SR U. S. License Tax U. 8. Income Tax .. Plant additions incorrect- ly charged to operating expenses ... Partial Reduction in Ad- vertising Appraisal Expense Rate Case Expense i | | $ 63,078 $ 58,480 $ 64,857 § 64,780 $ 63,450 $ 1,150 $ 1276 $ 1352 § 1, 417 493 521 15 15 15 929 135 15 427 § 1 549 15 21’ 9,100 2,445 190 2,100 1,784 204 2,100 1,896 217 2,100 2,566 213 2,100 2324 8117 625 38,883 6,000 625 40,497 6,491 750 48,987 7,443 625 54,689 6,437 625 53,336 ! i 2,000 3,000 5,953 1918 3 721 £86 1,708 1,052 Total Yearly Profit .. $118,617 $128,778 $134483 $145970 $132,601 PROFITS AND SAVINGS UNDER MUNICIPAL O ! ‘COVERING JUNEAU ONLY There will be the items sav- ed as ahove, such as taxes, stc, although somewhat less and in addition, savings in operating expenses, cov- ering whole system that have been charged incor- rectly to Juneau operatiors. Total Yearly Profits ..$102,800 $116,445 $124,940 $129285 flfl,wl Profits from sales of merchandise and bond interest are not included. . WALTER T. STUART Elec(rical Engineer