The Detroit times., 1911-12-13
COMMUNICATIONS.
From the Mayor.

/ G. c. y. 1900, / transmitted 10 your
i honorable Body the findings OF an In
Detroit Edison Company ~ will be
, remembered that the examinations OF
ne AFFAIRS OF the company were en-
member OF Governor Hughes Gas 4
Electric Commission OF the State of
New York. and recommended by the
United States Supreme Court himself
As result Of the ON cial eNamina-
ton, certain CONCESSIONS favorable 70
pal concession consisted OF a reduction
IN the primary rate of charge OF resi-
95s Business and from IN she general Ehtns
then forecasted that this reduction
Would amount TO an appreciate sum
each each year and this assumption has
port ! am about TO submit to you.
ssyvi,,is eonclI ,s shown that 5hs
ssreenens o Ts rfSS July Gr 'ne i5 5cs
have been ssfs. $1,000 In addition. il
y estimated that there has been a saw.
dsmpinp '22o Iowend oy moso periodical
The agreement above referred 10 be-
came operative, as stated. July |. 1908.
Edison Company and the city of De-
troit, remained In force at least. for
three years, or 70 June 30, 1911.
agreement, and DESTROYS OF securing a
new reduction, II possible. | placed my
sell In communication with Mr.. Alex
ander Dow, early In May, 1911. and re
quested statement OF possible reduc-
lions the company would be willing TO
make from rates then and now exist
1erences, agreed TO make certain con-
cesslons, put refused to consider other
propositions made by me, AS usual,
Mr.. DOW acted In an eminently fair
manner. and expressed his entire viii
lngness 10 submit to another exam :
nation on the part OF a capable ex-
Your Honorable Body Will under
i stand that II Is no small matter to
conduct an examination into the az
Iairs OF concern so peculiarly com
4 plicated as large lighting and power
plant IL requires an expert OF the
broadcast experience to wrestle with
man in the first examination in the
person OF u. IL. Crowell, and was well
sa,a When ne accepted second
MI. Crowells report is herewith
transmi ted to you. IL is complete and
i ect r ana G9vers the entire sub
I, printed In full in your of1ciaI pro-
! ceedings.
Briefly summed up. the report shows
l. That the facilities OF the com
pany are adequate and in Keeping with
/ the growth of the city.
2 That the company avoids uniust
various classes.
]
! reduce the nominal primary rate from
TO ~ cents on all classes
-, rhat reduction in some form
might be made either 10 the demand
agreement class. or 10 the energy
class IL Is suggested that an effort be
MADE TO enter into another price stip-
y ulallOn, preferably for period of five
years 10 secure the greatest conces-
sion. provided.
/ ta) That the nominal primary rate 10
the demand agreement class he reduced
5 from ~ TO
OF the energy class
,tci a reduction OF the hours OF use
or the primary demand.
I'D \ reduction within reasonable
time Of the nominal primary rate TO all
consumers. Including residential resi-
dental. consumers.
on October eth. the Crowell report
was placed in my hands. and = dupll.
cate copy transmitted to Mr.. Dow At
the subsequent conferences made a
determined effort TO secure a conces-
sion similar to the one OF 1907 for resi-
Dental consumers--this i'm spite OF the
report Mr.. Dow was adamant how
ever. and inasmuch as his arguments
were substantially confirmed by Mr.
Crowell ! was compelled To desist and
turn to the specific recommendations
Mr. Dow agreed To reductions under
, (a) and tc). This covers the demand
sumers. OF which there were on Novem-
her LIST, 5.075. and the general rate or
open order consumers, az whom there
were l10y; on these classes Mr. Dow
agreed TO a reduction OF cents or from
IA cents To 10 cents. on low estimate
this would mean saving. the first year
OF $4,000 TO the 10000 consumers in
these classes A 20 per cent estimated
yearly Increase would bring the saving
! to 100000. 90 the second year. and Sl2n.-
600 the third year--a total OF s305 900
! the next three years
/ In my argument for "A lower rate for
! the residential consumer. ! expressed my
/ Willingness to "A fve-year agreement in
stead OF three-year agreement. This
was refused and we agreed TO three
year term OF the concessions, Mr.. DoY
: has promised 10 recommend the conceN
sions TO his Board Of Directors. and is
hopeful that they Will be accepted.
/ In concluding ! feel compelled TO state
that during the entire examination OF
the affairs or the Edison Company. every
courtesy was extended TO Mr.. Crowel
and to myself by Mr. Dow and other
the company is animated by the best
of good will towards the eitt. and rc1ti-
( ICES that those who make its existence
possible are entitled TO consideration
Mr. Crowells report and Mr. Dow's
acceptance accompany this communion
\ ton. and both ought 10 form a part Of
/ the official proceedings
also recommend reference To this
/ communica ton the Crowel Report and
\ Mr. Dov's reply, to Your Committee on
Ordinances for consideration, and. II
?
Respectfully submitted
/ WM y. THOMPSON
| Mayor
! Following Is Mr. Crowels report and
MI. Dow's acceptance
October 81. 1911
Hon. VIM. u Thompson. Mayor:
| Dear Sr--In accordance with your
! instructions. ] have Investigated the
operations of the Edison Illuminating
! Company and it's affiliated companies
= in the furnishing OF electric light, heat
( and power to the City OF Detroit. it's
citizens. inhabitants and corporations
period beginning July l. 1908. and end
ina June 80. 1911, and herewith re-
/ specially submit my report for your
consideration
The purposes Of the investigation
/ were TO determine
] (aD The probable saving 10 the GUS
toners Of the operating companies by
reason OF the reduction Of the primary
residential rate from g cents 20 ~
cents per kilowatt hour:
OBJ To determine " the charges OF
the company az the prevailing rates
\ produced excessive rate OF return on
/ the Investment value Of the property
used in rendering the service:
/ (cb To determine the practicability
or advisability OF further reduction
| w any OF the rates offered by the oper-
otlng companies;
tdl To determine III there was UNI
Just discrimination i'm the prevailing
rates fo~ various classes OF service:
(e) To determine IL the existing
4 facilities were adequate and had kept
PACE with the demands OF the com
mUnity,