Los Angeles herald., 1909-09-30
EQUAL RATE FOR
ALL DEMANDED
PASADENA'S LAWYER EXPLAINS
ELECTRICITY GAME
SAYS EVERY CONSUMER SHOULD
BE TREATED IMPARTlALLY
Points Out Opportunities for Corpora
tions to Cut Rates in Order
to Discredt the
City
rspscial to The Herald.1 ]

Z
compel the Southern California Edison
company to discontinue its fiat rates in
competition with the municipal lighting
plant. Woods statement was issued
because of the discussion which has
ensued since the council took action
which will put a new phase on the
lighting situation in this city.
superintendent Koiner of the mu-
nicipal plant refutes the suggestion
that the city is attempting to raise its
rates. District Manager Mulligan of
the Edison company has been in Los
Angeles all day in consultation with
the officials of the Edison company. 1t
is probable that legal action on their
part will follow this move of the city.
| In this city sentiment is divided and
many requests have been made upon
the councilmen and the city attorney
to explain the reasons why the city
took the drastic measures it did,
Wood Explains Action
City Attorney Wood. who drafted the
ordinance over which there is so much
discussion, has prepared the following
statement defining the city's stand in
the matter:
Tine ordinance, in effect, does Moth
ing more than prohibit discrimination
and require an equal rate for all per-
sons using the same amount OF cleo
tricity. The scheme of the ordinance
for doing this has been adopted as the
one least open to legal attack and least
Objectionable to consumers. 1t leaves
competition entirely open.
Every consumer using the same
amount of electricity is, under the law,
entitled to the same rate. The ordl-
nance. in effect, does nothing more
than require this. 1t requires all en-
ergy sold to be measured through an
accurate meter. 1t classifies electricity
furnished so that within proper limits
the rate can be regulated by the
amount of energy used, but neither the
small nor the large consumer can be
Disseminated against. 1t does not re-
uuire a higher rate than at present
charged. The rates fixed are only the
maximum rates. Lower rates may be
charged, but those rates must be meter
rates. must be given equally to all, and
a schedule thereof must be filed with
the city clerk and published. Secret
rates to favored consumers should GER
tainly be prohibited. and are by the
ordinance made unlawful.
Equal Chance for All
IF the Edison company has been Civ
| ing fat rates which have been proper
| toned upon the number of lights or
amount of electricity used and given
equally to all fiat rate payers, 1t will
have no difficulty in fixing schedule
of meter rates, under the ordinance,
which will make the charges to its fiat
rate payers the same as now 1t can
make a rate of 1 cent per kilowatt hour,
if it chooses.
of it has been giving preference IA
vors, If it has been giving lower rates to
some than the company can afford to give to
all, it cannot fix meter rate which will
not raise some of those favored rates. Surely
no person can with good grace expect to re-
ceive a lesser rate than his neighbOr for cleo
tricity from a public service corporation any
more than he can expect the government TO
permit him rebates TO ride upon passes.
mo doubt the outcry against this
ordinance will be directly proportioned
to the extent to which special rates
have been given to favored customers
and to the corresponding difficulty
which the Edison company will eX-
uerienCe in establishing a meter rate
to be given equally to all, which will
enable those favored rates to be con-
tinued.
"The ordinance is not as suggested
ty Mr.. Mulligan, the agent for the
Edison company, an opening wedge
for the raising of city rates. Mr.. Null
ligan is mistaken in saying that the
city is not making money at its pres
ent figure. AS a matter of fact, 1t is
probable that the city is in position
to lower its rates from the present
schedule and probably will do so when
it files its own schedule of rates under
this ordinance.
Scarcely Preposterous
TT seems scarcely preposterous, as
Mr.. Mulligan suggests, for the city to
require the same treatment of all con-
sumers merely because the city hap
pens to have its own plant. The duty
of the council as a governmental
agent, toward its citizens, great or
small, is not removed by the fact that
the city is proprietor of a lighting
plant.
even if the ordinance were regarded
solely in view of the city's ownership of its
lighting plant it surely would be short
sighted for any person having only his own
and the city's interests at heart to object
to the doing away with fiat rate system
which is practically impossible to regulate,
and which would enable the Edison company
to drive the city frem the field and after
making the city's plant unsuccessful, revert
to its old practices.
''It must be remembered that the
Edison company is powerful con-
.cern, furnishing energy over large
part of Southern California, and could
afford to furnish electricity to PaSa-
dena below cost for time if the eX-
ample of the city's success in mu-
nicipal ownership could thereby be de-
stroyed.
Honest Competition Open
Honest competition will be left
wide open. The result will be to force
both the city and the company to
bring it's rates to the lowest point at
which reasonable return upon money
invested in the respective plants can
be made. 1t is true that vicious and
dishonest competition, as exemplified
in this country by certain large cor
porations or trusts will be made diff
flcult, if not impossible. Fortunately
the time has gone by when any doubt
remains in the minds of the people
as to the wrongfulness of that class
of competition and as to the propriety
of the public authorities taking reas-
enable means for rendering it impos-
sible.
"The history of this country has es-
tablished beyond doubt that the inter-
ests of the people are best conserved
by a system of charges which are uni
form and public, applying equally to
all and fixed at such a point as to
bring reasonable returns upon money
invested
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