Nogales International

AGREEMENT NEAR IN THREE YEAR DISPUTE; UTILITIES WILL MAKE PAYMENT OF BIG SUM

Power Company To Get 25 Percent Cut On Back Tax Bill, Making Total Of $54,000 To Be Paid Into County Treasury Soon

(By ARCUS REDDACH, Jr.)

An agreement on the three year dispute over public utility taxes owed by the Public Utilities Consolidated Corporation appeared to be in sight this week after Chairman William H. Hathaway of the Board of Supervisors told Duane Bird, public utility counsel, that the board would make a 25% reduction on the company's back taxes if the utilities would pay the remaining 75% immediately. At present the taxes amount to $72,261.78, if reduced they will be about $54,000.

"We will turn the money over to the county treasurer as soon as the board acts officially," Duane Bird said.

On the other hand Hathaway told Bird, and C. H. McNulty, local utility manager; "We won't take any action until we are positive the money will be paid to the county treasurer."

Supervisors Hathaway and John A. Jones insisted that the utilities present either a certified check or deposit the tax money in the First National Bank. "If the board can not make the 25 per cent reduction then you need not turn the check over to us, but we must be certain that you really mean business", said Hathaway.

Attorney Bird explained that the utilities are in federal receivership and that the court "will not allow us to throw around money without some reason. We can't ask for $54,000 to carry out an agreement that hasn't been made." he said

However, Bird told the board that he would send a telegram to the receiver in Minneapolis advising him of the board's wishes and urging him to find a way to meet the board's demands.

Bird and Hathaway expressed the belief that the deal would go over since both sides have agreed on the proposed 25 per cent reduction. All that is now necessary, Bird said, is to iron out a few technicalities.

"We'll work out this matter of a certified check", he declared.

Supervisors Hathaway and Jones did all the talking for the board while R. T. Frazier listened closely to the discussion which lasted until long after working hours Monday.