The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1911-06-03
MAYOR MOVES F||
GUT IN Rates 0;
ELECTRICITY
Puts H. H. Crowell, New York
pert, at Work on Edison c.
Books in Effort To Show Rsdue-
tion Is Justified.
General Manager Dow Willing q
Make Concessions To Factories,
But Not To Householders.

Mayor Thompson has commences
another move for cheaper eiectrlc
lighting rates from the Edison Hum
mating Co.. similar TO that OF three
years ago, when material reduction
was secured on residence lighting.
With this end in view. the mayor
quietly consulted Richard Watsons
chairman OF the public utilities com
mittee, of the common council, ana
three or four other aldermen. and pro-
cured the services OF Ii. H. Croweik
engineer under the New York state
public utilities commission. who In
vestigated the lighting question here
In 1907-S. Crowell has been going
over the Edison company's books since
Thursday.
Alexander Dow. vice-president and
general manager OF the lighting coul-
pany, gave orders, as on she preyi-
Gus occasion that the books be thrown
open, and with the familiarity gained
then, Mr.. Crowell is expected TO make
q report within few days. Mr.. DOW
says that il will be impossible TO make
any further reduction In house light
ing rates, rs this class OF business
has not been carrying It's proportion
Of expense, but that there will be =
reduction I'm rates TO the yearly light
an6 power customers, the factory
owners and others, who contract 70
use their equipment $50 hours year
at the maximum rate Of Ia cents q
kilowatt hour, with rate Of four
cents a kilowatt hour after the $50
/ xufn h. Ia
by cutting the number OF hours at
the maximum rate to 900. which Mr..
Dow says will make a material cut
In the average cost.
Mayor Thompson is confident, how
ever, that a reduction can be secur-
ed on all classes OF lighting; some
what In proportion to the Increased
business
The present investigation IL Of re-
cent beginning. and resulted from the
mayors remembering that the three
years for which the present contract
| with the city was made. expires June
30. He wrote 10 Manager Dow. cali
Ing attention to the matter. and ask
ing what reduction would be made
for the next period OF time. Mr.. Dow
replied as stated above.
Mr. Dow said that the increase IN
the size OF the city had not resulted
In the expected decrease In cost OF
producing current, for the reason that
new subdivisions had been opened, In
which II was necessary to construct
equipment, and that the old sections
had not filed up as rapidly as had
been expected. He stated that out Of
1880 meters In the city. 25.S23 or
about 6S per cent, are In residences.
and that the average lighting bill was
$50 a year, while II cost $50 to get
the wires into the house. He said that
there were 5.644 additional residences
connected In 1910, and that the inyest-
ment was disproportionate to tho re-
| turn.
we haye sir. Jexpressed q ballet
mat 4 specially attractive rate for
residence lighting Is good adwertisin9.
for Detroit as place to live In. Mr..
Dow wrote. but 10 Is neither good ad-
vertising nor good business to make
the rate to one class OF customers %
low that their service must be made :
burden upon other classes. III the city
would stop growing. which Il not 20
be desired. or IL the people would
buiu hOuscb IN luc uHHittu lOl8 Do
tween existing houses. which II very
much to be desired. the disproportion
between earnings and investments
would cease to be so great. and our
present residence rates might be justi.
fed"
Mr.. Dow insisted that the company
lost money on the commercial services
to customers using light for short
periods during winter evenings. but
says that the annual contract custom.
ers are returning a profit to the com
pany. and will shortly be given 70.
duction.
The correspondence brings up the
old controversy between the company
and the city as TO whether the com.
pany has term franchise or Is oper.
ating from day to day at the will or the
common council.
II