The Detroit times., 1911-12-11

pointing out why II Is impossible to
grant reduction In the residence
rates at this time. In this connection
he expresses the opinion that the con-
tinual opening o; distant residence
subdivisions Is not to the interest OF
tie community, and he suggests that
city taxation should be so adjusted as
to force the us - lots which now lie
vacant
This holding Of open areas in par
TALLY settled districts. while the pro-
cess OF partial settlement is repeated
further out, Is burden on all the
public services OF the community" he
says.
Mr.. Dow calls attention to the pro-
I-osed changes In the system OF taxa
ton. which, he says, would operate TO
impose still further burdens on the
company, and, probably, would neces-
state an increase In rates. He de-
clares that every saving In cost, re-
sulting from larger production and
better methods, has gone to the CON-
pany's employees and to the public,
while the investors profits have been
reduced. But the company is now
getting to a point where large econ
omies will be impossible, and the con-
Germ will no longer be able 20 offset
increased taxation by operating
economy.
Small Consumers Save.
Mr.. Crowells report covers the
period from July /. 1908. to June 80.
-911 He shows that, in that time. the
reduction in the residence rate from
16 cents to II cents per unit resulted
In saving Of $313,450 to the small
consumers. He estimates that there
was further saving to the consumer.
by reason OF the periodical dump
ing" OF the demard meter In June, OF
at least $4,000 per year.
Mr.. Crowell states the purposes OF
the inquiry, aside from determining
the saving to consumers in the past
three years, as follows: To determine
II the charges of the company, at the
Prevailing rates, produced excessive
rate OF return on the investment value
CT the property used in rendering the
service: to determine the practicable
(y OF A further reduction In any OF
the rates offered by the operating
companies: 10 determine IL there was
unjust discrimination In the prevail
ing rates for various classes OF serv-
ice: to determine II the existing facil-
tiles were adequate and had kept pace
with the demands OF the community.
Mr.. Crowell estimates that fair
total revenue for the Edison company
and it's affiliated concerns would be
s994.16972, or s per cent on an IN
yestment Of s11. SIT ,121.46. The actual
revenue, according to his figures, Is
$9O6, ,254.27. or 7.76 per cent on the
investment.
The expert finds that there has
been "as consistent an attempt to-
ward equitable classification as Is
t.ossibie." His conclusions are as roll
lows:
That the facilities offered by the
operating companies are adequate ana
Suitable for the demands Of the COM
munity. the growth in facilities hav-
ING kent mace with the rapid growth
Of the city during the past four years.
That there Is consistent effort made
m avoid unjust discrimination in the
rates offered the various classes OF
seryice. and that the relative growth
IN the various classes Of business and
the average rate paid by the various
classes luOlCdIS III a hOooe.C N~
sence of unjust discrimination.
That Il would not be equitable TO
reduce the nominal primary rate from
IA cents to II cents on all classes or
lighting consumers.
That a reduction in some form
might be made. either to the demand
agreement class or to the energy
class OF consumers for a coming
period or cycle OF operation.
Experts Recommendation.
Mr.. Crowell recommends, however,
that within reasonable time the
nominal primary rate be reduced to
all consumers, including the residen-
tiaI consumer, thus offering the least
possible rate to the lowest user,
which, while Il might attract some
Improbable consumers, would bring
the service within the reach OF the
most modest income"
The report summarizes the com
pany's growth since 1907 as follows:
The output has Quadrupled; the
number OF consumers has increased
from 1890 to 10000; the number OF
incandescent lamps connected has In
creased from 5000 to over $4,000; the
horse power OF alternating current
motors connected has Increased from
1900 to 22.500: the connected load
has increased from $4,000 kilowatts