Salt Lake Telegram | 1933-11-10 | Page 15 | Utah Power Co. Finances under Fire at Hearing

TAH JAH AH POWER WEB CO FINANCES NANCES UNDER FIRE fiE AT HEARING 2 f r I iy y Officers Charge Capital p Account of of Utility Highly High High- i ly 11 Inflated Pages Pages ages of a commission Port on the Utah Power and Light FrIC Friday continued to furnish my exp experts with ammunition for cir battle before the utilities comission com com- for or a 10 per cent reduction in ower rates at Fort Douglas Reading questions and answers from frome he e e commissions commission's report to the sen sen- te Colonel Hugh C C. C Smith judge of the Ninth corps area anc and Deputy ep ty Attorney General John D Dice DiceS iceS ice attempted to prove their asser on made Thursday that the power is carrying A a. valuation of on property worth 25 25 1000 less Records Reviewed Assuming the roles of William T. T associate counsel for the thede ade de commission and Albert Alber A. A Harty Hart- Hart y 7 an accountant the fue two attorneys ead ad from the voluminous report tes- tes any ony on the financial transactions into between the power corny comy corn corn- any y and ana the Electric Bond and Share from 1912 to 1928 These transactions the army main main- n kins ins brought about on an inflation in inC ine he e C power company's capital account If The army also claimed hat at the amount of inflation which inters into the company's rate ba base e t around arrived at by rious arious means k Transfers Transfer Traced I- I Reading from rom the report the army's attempted to show that in 12 the Electric Bond and Share cor- cor ration oration acquired control of a number properties in Utah Idaho and Colada Cola Cob ido do which were turned over to the tah Power and nd Light company or- or that year The transfers the army claims etc ere n not t made directly but through steps First by the Electric ind nd and Share to the Utah Power second from the Utah iwer company with other properties to the Utah h Securities cor- cor ration and third a transfer of the thc lance ceto to the Utah Securities corpora corpora- in n Inflation Finally nal y the army ormy held the proper proper- were vere trans transferred erred to the Utah Wee ter and ond Light company in such a iy that properties which cost the theah ah h Securities corporation re written rewritten on the power company's ks at an excess over overcash overs s cash leash cost of Subsequently the questions and an all brought out that the Utah Pewit Pow Pew it Light Light company through companies purchased new con con- and added to its investment th further inflation so that in 1913 8 Inflation was mount mount- C in 1914 to and remain remain- I there until 1928 when it was ine in in- e Sed to Cites Traction Deal that figure the army contended resented presented only the inflation of the pany's capital account and aled al al- jed ed d that other inflation not charged Ute the capital account brought the ial 1 inflation figure to As an instance of this inflation the cited the purchase of th the theah ah h Light Traction company compan b by bye e Utah P Power Light company The e report the government held owed that in 1913 the Utah Sec ri- ri 5 0 corporation took over in stock of the Salt SaIl Lake Light Traction company for which it J id cash stock Transferred Later the government alleged the ack ck k was transferred to the Utah ht t Traction company in ira in inex ex ex- ange ge for the same amount of corn corn- on stock In February 1915 the in common stock was trans trans- d from the Utah Li Light ht Trac Tract n n. n company to the Utah Power t company and entered on the tiers tier's books at an m excess The testimony was read into the theard cord ord by the governments government's attorneys er the objections of George R. R rey ey counsel for tor the power commy com corn my y 7 who insisted that the value of e e. e capital structure of ot the concern a nothing to do 39 with rates The e C hearing will be continued for veral days das