Show UTILITY FIRM IS ACCUSED OF RACKETEERING Attorney to Complains to St State te Board of Operation Op Device t oJ The state tate public service co m j slon sion was asked Friday by J Joel Nibley Nib Nib- j jey ley ey Salt Lake Cit City attorney to ac act t against a particularly brazen piece 1 of utility r racketeering by the Utah s Power and Light company that thatis Is costing Its customers lr from m 1000 0 to 2000 a aday day Mr Nibley in a letter called the commissions commission's attention to opera lion tion of a device by the company under under which It has for fora a number number Vj Z of of years successfully passed to its customers obligation to pay Interest t A r charges on bonds of the Utah Light and Traction company amounting to more than a year J Letter Got No Reply 1 The attorney recalled to the commissIon commission com com- mission he had written It a D. letter latter i July 10 on the matter and said since he had received no reply he wanted to know beCo before e filing a petition lon and complaint against the traction company what view the commission takes regarding suggestions made In the first letter to correct tho the f condition J 4 5 The T e power company has had Im Imposed Imposed im- im d it lt tw twofold fold pos posed upon a obligation Mr Nibley wrote the first as owner of the traction company to protect its property against mortgage mortgage mort mort- gage foreclosures and the second by contract of guarantee to pay bond interest 2 Recalls Lease i The commission will wUl recall that early in 1915 the traction n company leased to the Utah Power and Light company for tor an indefinite time Ume certain properties for a year plus such additional sums if any as as' may be required to make net earnings of the traction company company com corn pany equal to interest charges on its bonds issued and outstanding under any of ot tho the mortgages on its leased property Mr Nibley said it is possible was a fair rental at the time the lease was executed S With the decline in traction company company com com- pany business increasing amoun amounts as s re rental tal have tv been r r Ye yearly to me meet t traction company deficits I which were in 1932 m more mare re than in 1933 and perhaps nearly that much in 1934 1934 u the letter said Money l Wrongfully Taken Taken- This money has been taken wrongfully from pockets of rate ratepayers ratepayers ratepayers payers of the Utah Power and Light company to support another business business business busi busi- ness owned by it with no increased benefits to the rate rato payers Since the Utah Power and Light company is the owner of all traction company stock toek and guarantor oC its bonds it may mayor or may not be a matter of ot Interest interest interest in- in terest to Utah Power and Light company stockholders if it that company company com com- pany wants to sink its funds in the transportation business S 'S Losses Charged to Customer But It certainly certainty is a matter of vital concern to a customer of the Utah Power Light company when those losses are charged to him as they have been and as 83 they are being being being be be- ing at the present time intolerable condition This is an and should not be allowed to continue continue con con- another year It is undoubtedly undoubted undoubted- I ly Iy one reason the Utah Power Light company has delayed filing an inventory in the present case The pe pending ding complaint by the tho public public public pub pub- lic service commission against the rate structure of the company Helping Other Firms It uIt is not the patron of the tr trac n c- c cIt It tion company who has saved th the compa company y from rom insolvency but the rate payers of another wholly separate sepa zepa- rate and distinct utility engaged In Inan inan inan an entirely different line Jine of busi buM ness Now Is the time to correct the tho C condition Mr Nibley offered this suggestion suggestion tion That the commission inquire of ot the thc Utah Power Light company whether it is willing to enter a new arrangement with the traction company company com con pan pany under terms of which tho the power company would pay annual rental equal to a reasonable return on the fair value of the proper property y I leased and no other Calls for Rate Case Cao i J Jand This should be drafted at once and submitted to the commission for its approval with an inventory of leased property and an appraisal of value in order to fix a fair rental If it IL is decided to continue the present present pres pres- ent lease Jease I suggest that the commission commission com corn mission institute at on once co a general rate case against the traction company company com corn pany and order n an inventory and appraisal of all property leased and Rates should be first established to make the company support self ing If that is impossible tho the loss 1083 should fall all on traction company stockholders instead of upon ratepayers ratepayers ratepayers rate rate- payers of ot the tho Utah Power and Light company through one of ot those fa familiar familiar familiar fa- fa agreements of ot this utility ne negotiated ne De between the tho parties s with the Electric Bond and Share company company com com- corn com pany sitting on m both sides of the table Lable S The letter Jetter was referred by E. E E E. Corfman Cortman commission president t. t to tb John D. D Rice deputy attorn attorney e general general gen gen- gene gen eral and counsel for th the tha commission commis sion SODo S Lr u-S u S |