The Detroit times., 1911-12-13

verbally. Il would be difficult. and In
fact hardly fair. 10 reduce the decent
rate for the yearly contract customers
without reducing IL for the Open order
customers and this will allow those
sehc are now Improbable to benefit as
well as those who are paying thelI
share The plan suggested IN my May
18th letter OF reducing the number or
hours to be charged for at the maxi
mum rate, would operate more eqult-
ably. Nevertheless | am obhged 10
agree with ybur contention mat "a cut
OF the decent rate 20 l2-cent would
give greater satisfaction than a reduc-
ton In the required hours OF use DO
not agree with YOU that IL viii tend
20 bring a better line OF business That
is "A dream that does not come true
business people who go home at half-
past five viii not stay until seven IN
order TO burn more light IL VIII only
bring Ms more half-past hNe customers
who could be prontably served py the
Gas Company--but are loss 10 an
electric light company.
We might get round the difficulty by
making new classification-but l
agree with MIR Crowell that II Is pet
ter TO have too few classes than TOO
many 50 N follows that IL We are 20
cut the accent rate to l2-cent I'm ac-
cordance with your stated preference
IL VIII benent nearly ten thousand con
sumers now being serVeasit would thls
year have cut by cents the bilhng or
3 $50 $50 units: and next year. on low
estimate, will cut our net earnings
SIS, 600
AS to Mr.. Crowells recommendation
about residence rate (dl-l must en-
tirelV disagree with him. Mr.. crowelf =
report. so far as IL goes, confirms my
statement that residence business vs.
Improbable. He does not say TINS IN
so many words, bat he correctly states
the reasons why IL Is so and admits
that the showing does not justify any
cut OF rate He notes the reduction
both In average rate ana IN earnings
per customer during the three,yea1r
period which ne has studied. Whll"
he avoids co uniting himself in the
report I believe he will confirm my
statement that the residence business
OF this company does not carry lts
share OF the coats. and that II IL STOOD
alone Il would be an absolute loss
IL requfes two or three times the IN
vestment in distribution system needed
for commercial business and II mas
entirely failed 10 ma &c good your en-
pectation (and Mr.. Crowelisl that It's
increases would be by the addition OF
customers on existing lines ON the
contrary, there has been no end TO the
expense for extensions.
With the best OF good will towards
the growth OF the city. ] am sure that
the continual opening OF distant resi-
dence subdivisions il not to the inter-
est OF the community, and that city
taxation should be so adjusted as 70
vacant awaiting the time when the
growing density OF population viii
permit them 10 be sold with big
profit. This holding OF open areas IN
partially settled districts, while the
process OF partial settlement is re,
pcated further out. ~ burden on all
the public services OF the community
street lighting and cleaning and water
supply and police service. as wen as
electricity. gas, telephone and street
cars
see no prospect o. Improvement OF
the residence conditions. The aver
age rate now IL too low. The reduc-
tion which we agreed upon four wears
ago has not been justified by the hlline
up of vacant lots. am entirely hn-
willing TO make any definite promise
today as TO reduction OF residence
rate in the near future.
7 must direct your attention to an
other important consideration. namely
the present proposal OF system pi
state taxation which will operate 20
impose greater burden upon the
business OF this company. We now
nav over five per cent of all our re-
CENTS, as taxes. II the proposal re-
Gently discussed at Lansing should ne
put into effect. our costs would be
raised 10 an extent which would com
pei VS. to consider increases or rates
During the last ten years We nave oeon