The Detroit times., 1911-12-11
EDISON co, CUTS RATES
FOR COMMERCIAL USERS
OTHERS WILL NOT PROFIT
Three-Year Agreement With Re-
duction of Two Cents Per
Unit Secured by Mayor.
CRoWELL AT WORK HERE.
Expert Spends Months on Com
pany's Books-Bouquets For
Lighting Concern.

GRASSES or commercial consumers from
IA cents per unit to ~ cents per unit
and Mayor Thompson, on behalf of the
city, has negotiated a tacit agreement
with the company on that basis for q
period OF three years. All that Il
necessary to make the agreement bind
Ing Is the formal action OF the direc
tors OF the corporation and the com
mon councils confirmation OF the
bargain on the city's part.
The reduction will affect about 10,
coo commercial users of electric cur
rent. and Mayor Thompson estimates
mat II will mean a saving to them
OF $4,000 in 1912, 100000 in 1913
and $l22,000 In 1914, or a total OF
100000 for the three-year period GOV.
cred by the agreement. The mayor
also tried to secure a further reduc.
ton In the residential rate, which was
cut from Is cents to IA cents per unit
three years ago, but the company
could not see It's way clear to grant
this, claiming that the average rate
is now too low.
For the past six months, II now
transpires, Mayor Thompson has been
quietly investigating the Edison com
pany and It's affillated concerns, the
Ieninsular Electric Light Co. and the
Detroit Edison Co. Last May, when
the old agreement was about to ter
inmate, he reengaged II. II. Crowell,
the electric lighting expert OF Syra-
cuse. n. Y. on the strength OF whose
report. in 1908, the former reduction
In rates was obtained, and Mr.. Crow
NJ awh IN
quiry with a view to ascertaining
principally whether the city was jus.
tined in demanding further reductions.
He submitted mis- findings TO the
mayor In an exhaustive report about
Nov. 1, and the mayor has spent con-
siderable time since then, when he was
not In conference with the Detroit
United Railway representatives In
connection with the proposed settle
pent OF the street car question, In
negotiating with Alexander Dow, vice
president and general manager OF the
Edison company. with the result al
ready stated.
Inquiry Not Expensive.
The mayor contemplated five-
year agreement with the company if
he could secure a reduction in the
residence rate, but when this was not
forthcoming the period covered by the
agreement was cut down to three
years. At the time he engaged Mr..
Crowell, he took the matter up with
Aid Watson, chairman Of the public
utilities committee OF the common
council, and other members of the
committee and was told to go ahead.
So. in view of the results accomplish
ed. there seems to be little doubt as
10 the council allowing the bills for
the expense entailed by the investiga-
ton. Three years ago, the council ap-
propriated $4,000 for the investigation
of the electric light and gas COM
panies and about $2,S95 was spent.
Mayor Thompson estimates that the
latest inquiry will not cost more than
half that amount and probably less.
Mr. Crowell has not yet sent In his
bill.
Mr.. Crowell's report will be sub
mitted TO the council Tuesday night,
together with a communication from
the mayor, In which the executive
will no doubt have some pleasant
things TO say about the Edison COM
pany and it's methods.
The report certainly shows the
company In an excellent light" said
his honor, Saturday. Il am credibly
informed that the corporation has no
water in its stock, and Mr.. Crowell
tells me that II is selling It's product
rs cheaply as any company In the
United States. II Is pretty close to
the model corporation. and II certain
ly has been on the square with the
city In this investigation, opening up
It's books to us and giving US all the
information we desired, information
that could have easily been withheld
IL the company had been so disposed.
"The way the company's taxes have
Increased from year to year ! think Is
worthy OF notice. Its taxes have
doubled In the last four years. tnd
now represent about 1ve per cent of
the gross operating revenues. | be-
lieve the company should be highly
commended for its excellent record
for honesty and square dealing"
The mayor intimates that he has an
other sensation In the incubator and
IL is nearly ready to hatch. He will
not give even a hint as to the nature
OF IT, however.
Mr.. Dow's Letter.
in lis letter to the mayor, agree
ing to the reduction. Mr.. Dow says:
| am prepared to recommend to
my board, with the expectation
that the recommendation will be
adopted, reduction OF the pri-
mary rate applicable to our de-
mand agreement or one-year con-
tracts and our general open order
rate from IA cents per unit to
12 cents per unit, with the under
standing that we will be assured
OF cessation of ofhcial requests
for revision Of rates for three
years. II this assurance Is now
given, we will apply the reduction
to the January bills falling due
In February. AS to the residence
rate. I annot>recommend any re-
duction In that rate, nor, accord
ing to my judgment OF local con-
ditions, is Il likely that the ad-
verse conditions affecting that
rate will be effectively changed
within the next three years. As
TO a suggested ive-year term In
consideration OF an agreement to
reduce the residence rate within
that time, should be obliged to
advise my directors against any
undertaking to reduce rates at a
set future date. My judgment OF
tho future IL that the Increased
cost OF service. and particularly