r

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consumer after allowing a hi; N.

time Electric Comm-BY Md- 0°11‘ bluded at ~5 o'clock yesterday after- _ noon before the board in the Pro- ; vincial Building.

' A. N. Carter, Saint John. counsel ‘i for the company, addressed the ' board from z o'clock until 4.1a p.m. ‘ The remainder 0f the 59-58101! WES taken up by P. J. Hughes, K.C.. 2 Fredericton city solicitor, in rebut- ‘ tal.

Evidence taken at recent sessions W111 be transcribed early in Novem-

_, per, 1t was stated, following which .‘ ponnsels will prepare briefs of their r p359; (or presentation to the board.

May Take Months

Final decision in the case will fol- Slow careful study of the mass of fevidence taken and w;il probably -.' require some months" it was esti- _ mated by H. A. Carr, Camlibelltcn. Zchairman, who with A. l‘) HZOIYORE. §of Fredericton, and '\ bourqua, ‘Fox Creek, members, has been con- Friucting the hearing.

' In his argument for the com- Epgny‘ Mr, carter contended that the, Iquestion to be settled was whether Ethe rates charged are reasonable or unreasonable in consideration of the

value rendered the consumer. His iaddress to the board was, in part. ins follows: ,' -It is for the city of Fredericton .9; prove that the rates are unreas- Eonable. In 192-1 the present schedule _of rates was agreed to by the city ‘and has been acquiesced in ever ‘since. That fact, the. Wmlifllly ‘Econtends, presents strong prima

facle evidence that the rates are ‘ reasonable.

Furthermore, the per capits con-

_umpticn in Fredeticton since the present rates were established in 1927 have risen from 20 k,w.h. to 61 k.w.h. in i931 (for domestic customers) and from 86 k.w.h. to 137 for commercial customers. “Surely you could not get any better illus- tration that the rates are reason- nbis thsn the rapid and substantial mcreaso in consumption of power during that period." ‘

Property Value

Regarding the method of deter- mining the value of the property

' ~\ kss depreciation, we maintain con-

‘til

| p.

-.~‘:?“1+—T‘ §I*T€‘$f-—'~7Ei飀 7” ‘

.1

u 1|

t;

r-valus cfthe service to the

5-H-

""141. he said .

isfderation should be given the ori- ginal cost of the property, the amount and. market value of its stocks and bonds, its probable earn- ing capacity and the sum required r for operation.

At this point Mr. Carter quoted several legal eases in United States courts in support of 11's contention that "reproduction costs alone" formed only a small point in con- sideration given such cases.

Here Mr, Carr asked m. Carter If he felt production costs should be taken into consideration in dc- termining value of service to the consumer. Mr. Carter said he did not think so but- rather that the

cus- tomer should be the deciding fac- tor. i"or example, he said, in Saint John telephone calls are rated on this basis, and the man who makes extensive use of his telephone pays more pro rats, than the person making little use of it.

Referring to Mr. Hughes‘ argu- ment during the morning that "only property used and useful" should figure in the valuation, Mr.

‘ Mjlarterjpointed out that since i027

the company has invested $330,- 000 less about $80,000 for retire- ments, in improving the system, a large part cf which was spent on the generator plant (now idle) and which the city d:es not want in-

(8 eluded in the valuation- I i

"Tlrat investment was. made in good faith" for the purpose of sup- plying the people of Fredericton with“ the cleciric pcwer they need-

In 1926 the company was produc- ing power at 1.06 cents per k. w. h.

of the ccst of production arc in evidenca" Mr. Carter pointed out.

"Under the conditions I feel the figure is doubtful," commented Mr. Carr,

City mad Required

Only if the Fredericton load were available, continued llfzr. Carter, was the Minto power project fess- ible, and. the company, without any outlook for benefits to itself, but with benefits to the customers,'i.f any such benefits developed, as- sured by the contract, went into the agreement to purchase power from the Conunision, in a spirit of co-operation.

“It was not until some bright mind discovered the roferenm in the Mencton decision to “used and useful" as a basis for the property valuation in determining a rat/e basis, that this inquiry was pre- cipitated," he continued.

As for the steam plant, it was

good business for the company to maintain it as s. standby in case something happens to the Minto plant and to protect the company against exor-btiant rates when the present contract with the Com- mission expires. a Quoting several United Ststss cases, Mr- Carter contended it is the general practice to reimburse investors financing plants which later are abandoned, by having such plants amortized over definite periods- The Fredericton steam pant should be amortized, out of fairness to the investors under similar circumstances, he said.

Continuing, Mr. Carter said the company estimated the rate base as $437,040.41 which was not far out in comparision to Dr- Stephens’ estimate, in 1930, of $200,000 "and something more" for a possible rate base and $200,000 for the old steam plant which Mr. Carter said the board may or may not see fit to amortize-

Bsfers to Witnesses

"Furthermore I cannot refrain from remarking that Dr. Stephens was a mcdel witness on direct ex- amination by Mr. Hughes, but he was a. most difficult witness as far as I, and I think the commission, was concerned in cross-examina- tion."

"Simply a case of different coun- sel," interjwted m. Hughes-

"With reference to Mr. Vander- voort (superintendent of the N. B. Eiiectrie Power Commission) I think it. must be admitted that his experience has never included construction of any system on the scale of the Frederictonone but

has been confined to work in rural’

districts and villages and included practiealiy no experience in work- ing eapital- This, I think, was rs- flected in his rather loose methods in arrivng at estimates in figuring the value of the distribution syl- tem and plant. Mr. Vsndsrvoort also accepted Dr. Stephen's figur- es for overhead costs- There is no- thing in the record to show the professor is qualified, through ex- perience to give accurate estimates in such work."

Several other points were dealt with by Mr. Carter referring to comparative labor costs, minimum bani: balances, operating expenses the importance of making substan- tial allowance for "going value" and the fact that comm!” N‘ garding voltage had larltlr bu" remedied.

nous in Rebuttal

In his rebuttal remarks m. Bushes pointed out there has been no set rule established for deter- mining tho value of service rend- ered. "when a company his l monopoly of a product they might demand all the consumer could pay for their product but that would not necessarily be o fair price to the ccnlumer- A fldr price isthsvsluonftheproducttothc

Mr. Hughes based his arguments on tho judgment of the board in the Moncton electric power rates

' tum won the producer's invest- ? wk‘! ,0‘ flunk u.“ ,0‘, u.” W) “I $380,000 AUVQW‘ : ' y," hum,’ h m; "m. y", m; ed by the company since i937. m. 5 flclflllfil’ 9th-14th itselfin your druuint‘: cslmlt lnre- Hughes asked what the company i; . l! had to show for it. i-Ie referred to “ -' . I _ the efficiency rating of the boilers § '—"' and the turbo-generators, "s1 1nd 2 . W t“ w-“k.” 53f . , yPflbfelt it '. Pita-rumor BB l _ was not good business to retain ob- :I aside each your for 1hr rkffitfimiilit. 21mm, "first"; ‘mm “w9mem 5' m‘ m‘ "m" 1 u ' lure to interest you. plant being retained as a standby,‘ I Pwm“ ‘m ° in case the Minto plant broke _T professional down, he pointed out that the : phumum J‘ n‘ lmisquash plant, the N. B. Power 2 _ 148 Prince Street- Phooc l2. Oonrpsnyb plant at Saint JoJhn ' and others are limred up with the I [my . Mintc plant to meet any such em- ; _ ergency and that thter are two : ' lines carrying the power from Min- : 1N» B.‘ E1861‘ 11C ch83 , to t; Htdaflvtvn M a further ure- ~ cau .on. I 0 Q In conclusion, Mr. Hughes asked Lzke Charlottetown s w» n- m»... is s» t»... ; , ' ed as witnesses the bankers whom . Arguments Submitted To Utilities Board and Erydzfigwgehaoinzgiaifgmg: i Decision Reserved tun large minimum balances a, _ i? have their business conducted by “ aMN-r JOHN. och namumeng because the macaw‘ load w“ the banks without service charges. of counsel in the-application of the decreasing costs. (Here Mr. Carr "n w° “um hu‘ m“’°*“mm°d . city of Fredericton to the New expressed the view that the figure “m” “"1"” I mm“ i" "W" 3 Brunswick Public Utilities Board was mmrkably low and he could m" “mid "w" w“ “° “"1"” Z 10p p reduction 1n lgbg; and 1m- not see how it could be produced mm f“ m” wmpamfls mm‘ m‘ ,2 Yemen, m same, by m. Mm- at such a figure-l “But the details it'd“! mmimum ‘ham beianwfl’ ,1: P” he declared.

case to the effect that a public '

utility company is entitled to a fair return on the property “used and usefu " in rendering service to the public,

Mr. Hughes‘ argument, in part was as follows: The Maritime Gas and Electric Company, Ltd, is the successor to the old Fkedericton Gas Light Company whose prop- erty, including gas mains under Fredericton streets, it took over. If the Maritime Electric Company asked a court to provide that it

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».= a VALLEYFlvELD-ORWELL HEAD services, October 15th: 11 a.m. __,__’_ Valleyfield, 3 p.m. Kllmuir, 7 p.m.

This ‘column II reserved for Queen's Orwell Head- Rev- D- M59149“

County new: cf local Int r t b t d-

vcrtluing of I newly statues-e muny ‘In smcmm MA" minister’ inserted at 4 cents l word strictly Ilnynhin in advance.

REV. J. M. MURCIIISON-Serv-

_ "EATHERDALE HALL __ Mn ices will be conducted in DeSable Philip Bears Wm hum Dwmaseluichurch of Scotland Mom-lay. Oct.

vice in Heatherdaie Hail, Sabbathds’ “d ca" “averse Chm" 0i’ 00L 15m’ 7 p‘ m_ Scotland Tuesday. Oct. l7. Serv-

ices at 7.30.

HOPEFlELD-Pmaching :'2l'\'ic': ’ at Hopefield auhday, Oct. 15th, at’ CHURCH 0F 5C°T'~\-‘"’-~R°v- 7 p_m_ special ‘mung Lows H“; Ewen MucDougall will preach Sab. rm bath, 15th, at Birch Hill at 10.30,,

woon ISLANDS rnasnrrrart-iat '7 P-"l- Rfl- J~ M- Miirchisimi IAN mumcpki,“ Oct 15th thelwiil preach Monday, 16th, at De-a regular church sefllce Wm be at I Sable at 7.30 p.m. in the interest of‘

should be reimbursed for the gas mains, which are no longer used, it would find its request refused.

Capital Valuation

Therefore, the antiquated elec- tric llght plant of the company [which the company's Mr. Donald- son described as so much “junk", which is not in use but is sitting there idle, and they are attempting to show as part of their capital in- vestment is not "used or useful.” It should not be taken into consider- ation when the base rate upon which ‘the company is allowed to earn is being estimated.

We have shown that lVLr. Vand- ervoot, superintendent of the N. B. Electric Power Commission, esti- mated the reproduction value new of the Maritbne plant, after allow- ing for depreciation and all other items necessary, was $143,343-10 compared to $101,163.64 estimated by m. Taylor, valuating engineer brought here from New York by the company. The difference in to- tals is $44,820.45-

For the company Mr. Taylor would pay $8,000 for six months engineering superintende 1n erecting poles and establishing the distribution system. He would add such expenses as law costs during construction, $890: injuries and damages in some period, $1,730; taxes during construction, $890: interest during construction, $6,235, "and then to that they add a bon- us for the mistakes that adds $7,120 to the ccst of reproducing the system new-"

Sets Rate Base at $152,148

We contend the fair figure for the rate base upon which the com- pany should base its earnings is Ii52,143-l9. Incidentally it is a question whether it is not time the interest rats of 8 percent allowed on such base rates should not be lowered in view of changed general conditions. There is no actual leg- islation fixing the earnings allow-

able at B percsnt. I think it dates: ‘back to the legislation fixing this rate for the New Brunswick Tele-i phone Company many year! 880- '

Allowing 8 percent, on the base rate we have mentioned and prov- iding for other costs, including power, the actual annual operating costs would be alIPIWldmI-"l! $105.- 8ll.48. Last War income totalled 015855818. thlt is go ggy the company over-collected $44,136.72 under the present rates and charges.

Qompafi] representatives esti- mated the annual operatinl 6°85! at $104,155.20. of this amount $83.- ii40.00 was for tho purchase of pow- gp, leaving $41,205.80 10X‘ other page; compared with_Mr. Vander- voot‘: estimate of 830,039.52, leav- ing a difference of 811.1594” "huh w“ m“; up by monies shipped out by this company W Ofsmill‘ tlons in the United States-

This little company in Frederic- ton does not need 00' be managed from the United States. It can be operated much more cheep! here- I refer to such chill‘!!! as man- agement fee, 83353-95: illmhl-Hlni y“, goo; engineering fees on new m-nggguction I701; share OI the 5t.

the company's

Stephen office eXPflml. 0180i 1*‘ ports to head office organisations.

$1,073.84?

v

office salaries at si-mmflhlfl

3 p.m., Sunday School at 2 p.m., the Bu)!“ 50mm" i

Y. P. S. at 7 p.m. Rev. Allister, "‘”‘—‘ t

Murray, mmmen I csuanomn sun nwrtrmrf _ HARBOUR. PRESBYTERIANi MAN‘, HAPPY RETURNSAV“. ; CHURCHES-On Oct. 15th the R“ N; Cox of m“ city‘ Wm cab services will be as follows: Caled-I mate his 33rd birthday tawny He ; onia at ll a.m. and 7 p.m., Sunday, was bum 1n Charlottetown on _oc_' School at l0 a.m., Glen Martin; tober 12th, 1850. It is pleasing to, guild" s°h°°l at 3 P-m» Miiliflil know that he is enjoying goodll-larbour Sunday School and Bibi: heauh despite m! advanced yeam Class at 2~p.m. Rev. Alli-tit": Mur-i

_______ ray, minister.

SUNDAY SERVICES OCT. 15- 2.15 {LIILETAOINSI-IRDLUPLYDW Milton: St, John's Anglican Church, 2.15 p.m. Sunday School, 3.00 p.m. evening prayer and Holy Communion, Special speaker, Rev. H. D. Raymond. Rustico: St. Mark's Anglican Church, 7.30 p.m. evening prayer, Harvest Thanks- giving service and Holy Commun- ion. Special speaker, Rev. H. D. Raymond.

STORM SWEPT P. E. L-A re- port received in Moncton Monday from Cape Bauld, parish of Bots- ford, states that while at his lob- ster traps Monday morning Mr. George F, Porelle, well known fish- erman of Lower Cape Bauld found a power. boat and dory drifting "at! sea without any occupants. After: quite a difficult task he and thnsei who accompanied him succeeded in securing both craft and towed them to Lower Cape Bauld wharf. A search of the engined boat re- vealed that both were owned and registered by a man named Arsen- ault, of Rock Point, P. E. I., and had evidently been swept from their moorings on the Island side of the Northumberlnnd Strait in the gale that lashed this section on Saturday and Sunday. The owner at Rock Point was eventu- nlly communicated with and will come after the craft. Both were half-filled with water when found. It was also reported that the fierce gale of the week-end had damaged one of the breakwutcrs at Cape Bauld quite badly and that part of it which had been torn away had smashed some fishing boats moored in the vicinity, but the exact extent of the damage could not be ascertainecb- Moncton Times.

WABASSO LECTURES-A large and interested audience attended the Wabasso Lecture and Demon- stration at Prowse Bros. Ltd, Wednesday afternoon. Miss Mar- garet Maclnnis and Miss Florence Warren. of our staff and little Shirley McLeod were the very at- tractive models, when Miss Star- ling presented an advanced cotton fashion show, and told of many interesting uses for cotton, A fine range of Ayers pure wool blankets were also shown, as well as Sim- mons products. The Wabasso col- ored bordered bed set was won by Mrs. S. Duffy, 9i Prince St., City. Thursday and Friday afternoon from 3 to 4 o'clock there will be a similar demonstration’ when an- other free bed set will be presented to the lady whose name is drawn.

Stemn and Cambridge, Mass, $2,055.54 stationery and office supplies at same points, $86.05 and $463.01; law expenses, $26.43 of which $42-82 was in Fredericton; corporation head office expenses

IN MEMORIAM

MISS ANN STEWART

mince from his rcaidence Vverincs-

fstevzart was of a quiet. "en dis‘ position, a devoted Christian and a loyal member of the valleyfieid Congregation. She came in to full communion with the Church un- lder the preaching of the Rev. ‘Roderick MacLean in July, 1886, , when 10B persons became members ‘on profession of faith.

I The funeral service was held from Mr. MacLcods homo, Belle- _vue, at 1.30 on Thanksgiving Day {by her minister, Rev, D. M. Sinc- ilair. Mr. Sinclair spoke on Ro- lnzans 8: l8. Her favorite psalms, the 23rd and the 90th were sung.

u

Kinross at 2.30 and Murray River" she was laid to rest in the old

family plot in the Valieyficld cem- etery, The pail-bearers were Hugh ltfuthrscn, Dan Matheson, John liincBeth, John A. lilncPhce, Mal- colm C. ltlacPherson and Preston Peardon.

DAVID ALBERT HORTON

The funeral of the late Mr. D. A. Horton, Irowvr Montague took,

day, September 27, i933 xvherc a short service was held at the house alter which the rcma ns were taken to the chuch where a full service was conducted by the pas- tor, Rev. Mr. Pringle, assisted by the Rev. lVLr. Gough of Murray Har-

Petersville

P , N. B., Oct. 10- (QPJ-Oompletion of the first day's competition at the second an- nual North Amer can cover dog trials found Georgia Bell Spectre, little setter owned by Norman Browrilee, of Ottawa, winner of the open derby stake. ‘ J

Second and third place winners, in the same event were 011's Prince a pointer, owned by Leonard Stephson of Upper Golden Grove, N. B., and Delmar-via Bobs, black and white setter owned by Harrlgann of Millinocket, Me.

They showed considerable speed and were so nearly equal in their work on birds that the judges plit, the pair through a second heat be- fore making a decsion, Delmarvia B0118, the thifd place winner, dis-l played a,wide speed range and, smart ground work but a slight un-f sieadinesgon point.

Owing to rain, the entre morn-i ing was lost, and it was not until 2! pm. that the Judges, Ozark‘ Ripley! of Chattanooga, Tenn., and Arth- 111‘ Shfllbfi, Taunton, 1\Inss.,-called for the dogs entered in the ovpen dctiby stake.

bor and Rev. Mr. McNevin cf Georgetown. The pull bearers wee Chester Schiimer, Gordon Schirm-

class) Lcith Colvnn and Mont An- near, Supt. and Sec. Treas. oi Lower Montague Siruzlay School. The very large crowd of 1ieople from far and near bore testimony of the high esteem in whch the deceas- ed was held.

The deceased was born at Mur- :sy River, Jan. 26th, 1833. and he lived in Glncistone until 1022 when he removed to Lower Montague where he has since lived until his death sept. 2s, ma. In curly life he was converted and scrvccl his Lord and Master throughout hs long life. He was Superintendent of the Presbyterian Sunday School at Murray Harbor for about fifty years. As an elder and member of the Session he was evcr faithful to his duty and has gone to hear the well done good and gnithful servant enter thou into the joy of thy Lord. _

In 1900 he was united in marrlagci with Miss Francis T. Brrhaut of‘ Murray Ilarbor who predeceased, him som eyears ago. He was laid to rest beside her in the cemetery at Lower Montague. }

He was carefully and tenderly cared for during his last illness by Mr. Eli Vatcher who did every thing possible to make him comfoiablc,‘

$758.71; exchange losses on pay- ments made in Amrrican funds, $1- 60549; rate en-gnco, and other ex- perts, $1,687.92 and other items to- talling $17,255.80 l"ss items ex- plained in cross-examination which brings the total down to 513395-80.