Evening journal., 1913-04-11

the directors rooms OF the Street and
Sewer Department listened to argu-
ments for and against the granting
Of a franchise to the Peoples Light
Heat and Power Company and after
Robert H. Richards and William s.
Hilles, counsel for the new company,
submitted a proposition to allow the
Directors of the Street and Sewer
Department. to regulate both the
charges of the new concern for cur
rent as we'll as the earnings. action
was deferred on the franchise appli-
cation. Andrew c. Gray and John r.
Neary represented the Wilmington
and Philadelphia Traction Company
In opposing the franchise.
Prior to the meeting, which was an
adjourned one from last Tuesday, let
ters had been exchanged between the
Directors of the Department and the
Wilmington and Philadelphia Trac-
ton Company relative to a reduction
in charges per kilowatt hour for cur
rent now being furnished and while
the old electric light company agreed.
to reduce its rates, nothing was said
Of their proposition at the meeting
yesterday. At the close of arguments.
the directors adjourned on motion of
Mathew S. Murphy, director. Pres
ident George w. Sparks then an
nounced that the interested parties
would be given notice of the next
meeting TO consider the application.
At the Tuesday meeting the Di-
rectors referred to the method in
vogue in some cities, especially by
Public Utilities Commissions, of fix
ing the rates charged by the Service
Companies and while an adjournment
was taken at that time to allow Rich
ard W. Crook, manager Of the new
concern, to submit the schedule of
rates his company would charge, the
proposition to allow the Directors to
fix the rates was submitted. In doing
this Mr.. Richards said IL would be
impossible at this time to say whar
the new company's rates would be and
he submitted the following amend
ment to the proposed franchise
Section 4-The said company
shall not charge for electricity
furnished under this consent more
than 10 cents per kilowatt hour
and the said Board of Directors
of the Street and Sewer Depart
ment of the city of Wilmington
shall have the power and author
ity from time to time, to fix and
establish the rates, within said
maximum. as shall be charged for
such electricity. provided how
ever, that said board shall not.
within said maximum establish
rates or schedules OF rates so low
as to prevent the said company
from earning an amount SUM-
cient to pay its obligations and
per cent. interest on the capt.
tai actually invested in it's bust
ness, and the books of the said
company shall be open to the in
spection of said directors for the
purpose of enabling them to es-
tablish such rates.
In speaking OF this amendment Mr.
Richards said it conferred on the
Board broader powers than that OF
fixing a maximum rate in that it pro-
vided a means for the issuance OF Sc
curities as the earnings would always
be limited to per cent. In case the
company should become prosperous
and earn Is per cent, he added, the
Board could reduce the rates charged
the public. This Mr.. Richards contin-
ued would prevent a merger or sell
ing out. II is when public service
companies show earnings OF IA or IL
per cent. that they are sold and then
the purchasers sell a batch Of secur-
tiles to cover the increasing earn
ings. Mr. Richards added.
Mr.. Richards then read a proposed
amendment to the franchise which
prohibited the company from selling
out or merging. President Sparks
asked:
Does it prevent you from acquir-
ing any company"
Mr.. Richards said his clients were
willing to put that clause in If nee
essary.
The amendment governing tn,
selling out was as follows:
Section. In the event that the
said Peoples Heat, Light and
Power Company shall sell. lease
or otherwise dispose of the fran
chise hereby given to any other
person, company or corporation
now or hereafter engaged in the
business of selling and distribut-
ing electricity for heat, light and
power or should merge OF con-
solidate with any such corpora
ton, the permission hereby
granted shall forthwith become
null and void and all rights here
under shall be forfeited by the
said Peoples Heat, Light and
Power Company.
Mr.. Sparks referred to the Pennsyl
vania law limiting the earning o.
public utility companies under which
the United Gas Improvement Com
pany kept issuing stocks. He also in
quired what powers that Public
Utility Commission would have II
fixing rates if the Street and Sewe
Department fixed them. Mr.. Richard
said this could be overcome. If tn,
Public Utility Commission fixed rate
allowing the Peoples Company I,
earn more than per cent, the,
would have to reduce their rates a
their charter called for earnings O
that amount only. II the Commission
fixed lower rates. the company wouli
habe to abide by it. In other words MI
Richards said the Street and Sewe
Directors would have contract right
while the Utility Commission woul
have statutory rights.
Mr.. Gray, representing the viii
mington e. Philadelphia Tractio
Company, then spoke about the prac
teal operation of the propose
amendment. He said that the People
company could put $1,000,000 in cas-
into a lighting plant and issue 81
100000 worth OF per cent bond,
Under the franchise he said. the
would be allowed to earn $4,000
which would permit them to issue
$1,000.000 worth of common stock. O
which they could pay per cent. Thi
he explained is the universal practic