The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-03-02
MOVE TO CUT POWER
CHARGES AT NIAGARA
Service Commission Limits
Stock Issue and Fixes Rates
Of New Company.
TO REMOVE MIDDLE PROFIT
Canadians Discriminate Against
Americans in Sale Of Flee
trio Energy. ..
TO REMOVE MIDDLE PROFIT

ALBASu. March The decision Of, ira
upstate Public Service Commission uupn
tho application Of the Canadian Amerienr
Power Corporation 20 engage in business
issue stock and merge with itseif the
Niagara Falls Transmission Company
made public to-day. establishes a prsu
dent which in the minds Of lawyers aud
conssrvationists is bound to have an tn
portant bearing upon all electrical pover
development and distribution by private
corporations In this State.
The decision In set forth in a volum-
nous brief reviewing the history OF power
development at Niaga ara Falls and explain.
ing the conditions under which the Cana
dian-American Power Corporation NAY
engage in business. The commission spee.
lies the amount OF common and pre-
ferred stock the corporation may issue
numerous conditions under which the pro.
posed merger may be accomplished am
the average rates at which power sha'
be sold. a further restriction In eYec,
makes every act OF the corporation o.
any nature subject to the approval OF Tire
commission.
Canadian Purchasers Favored.
Alleged discrimination in price charge
BY Canadian electrical producing comps
favored to the prejudice OF America
customers. and the existing shortage o.
electrical power on the Niagara frontier
are discussed in the opinion. 1t is lie
clared that the various contracts wt.
tho producing companies should be 70
vised az TO prices charged the America
distributing companies. that there e .
shortage of power with a demand n
supply which is not being met by exist
ing companies and that tn. contracts
existing tend to perpetuate high rates e.
consumers.
The commission points out that TIE
Hydro-Electric Commission Of Canada has
contracted for current delivered at a Ga
madam producing plant for 50 per horse
power in large quantity, while the charge
for Canadian electric current TO the Ca
madam American Power Corporation for
a similar large amount OF power is si2 80
per horsepower.
The Niagara power companies both
Canadian and American, should sell
power at the lowest price consistent with
expense and investment and maintenance,
In u" opinion of the commission.
Charles H. jackson, chief examiner a!
the state Department of Efficiency and
Economy. has led the attack upon the
application OF the new company.
Makes Explanation Of Contract.
There liz an African in the wcodp,ie. ."
Gays Mr.. Jackson. There is II certain
electrical contract between the electric
development company OF Ontario Canada
and the Baltimore Utilities Company This
contract provides for the sale to the lat.
ter company OF $1,000 horse power rar
year, plus 5000 horsepower peak load ~
required. for thirty years The price for
the $4,000 horsepower Is fixed at slc 30
per horsepower and for the 5000 peak
load at two and one-haif mills per ki'o.
watt hour.
You will observe that che Raltin,or.
Utilities Company. which is to receive
sS.ooO,OO0 for this contract under n.
proposed agreement. does not expend a
single dollar and carries on no business
except the pleasant and agreeable occu.
patton OF receiving In the course of thirty
years the sum OF over $4,000, 900. which
Ia to be paid by the American public, 20
show. i suppose. that there is no hard feel.
ing"
The commission takes. CO re OF Mr. lacy.
sons protest by cutting the price Of ths
contract from $4,000. 900 to 81 OONeao +,
also cuts the price for the Niagara Falls
Electrical Transmission Company sto.s
bonds and debt from s435, 900 to $3.50 900
ana submits figures to prove that the 40.
ton VIII result beneficially to all con
cerned.
Commissioner James f Sague dissent,
from the decision OF the commission The
securities to be issued he considers moth.
Ing more than a capitalization of the .Iec.
Uical contract. Such capitalizatln, has
previously been condemned by tho corr
mission