Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1915-11-11
FINDING RETURN
CAPITAL EXPECTS
Electric Light Rates Subject Upon
Which Hearing Held at Com
meroial Club.
HOWELL WITH BLACKBOARD

"A fair rate of return for public
service capital" was a subject that
sounded innocent enough. The spe-
cial electric light committee of the
Commercial club invited half dozen
organizations of the city to meet
them at the club rooms last night and
give them suggestions on the above
subject.
Innocent enough was the subject.
But r. Beecher Howell was there.
Naturally the discussion gyrated
around until II became largely an ex-
aggerated exposition by Mr.. Howell
himself as to how the water works
plant is being run and what savings
II has made the people.
This occurred IN spite OF the fact that
Chairman ] a. Sunderland Of the COM
mittee announced that the committee
sought light on the electric llght situa-
ton and he trusted the chair would be
pardoned II he called any one down who
might chance to digress from the i'm
mediate subject in hand.
out Comes blackboard
No sooner had this announcement of
the chairman settled into the minds of
the audience of fifty or more than Mr..
Howell hung a blackboard on the wall
and showed his figures on the water
plants cost OF operation, depreciation
fund, questionable accounts fund. sink
Ing fund. and interest charges. Nor did
the chairman
He even asked questions himself. and
ENCOURAGED others to ask questions. Just
as though the fifty busy business men
hau come out In the cold to discuss the
water plant instead OF the electric light
plant.
Even at that. the chart Mr.. Howell had
prepared with his own hands contained
an error in addition of 1901 900 His at
tehtlon was called to this by Frank H.
Myers Of the committee. Mr.. Howell cor
rected It, and later explained that the
totai was correct but in copying the fig
ures from his brief he had neglected to
Insert one Of the items which would have
made the balance.
When T. ]. Mahoney asked the water
commissioner whether in determining
rates and fair returns, a private corpora-
NA'SNAA NV bt dllOWeu 10 DuilU I'D
large a depreciation fund as the Metro.
poitan Water District had done, the
water commissioner was not definite and
clear In his reply.
Judge ROemer Talks,
General George II, Harries. president of
the Omaha Electric Light and Power
company, was present. but did not speak.
lie introduced in his place Judge John II.
Roemer of Wisconsin, formerly chairman
OF the public utilities commission of that
state. Judge Roemer pointed out that
each utility has a hazard peculiar to
itself, and that these various hazards in
various lines have much to do with de-
| termining what should be O fair return
as reward for the investment of capital
In such utility. Where a utility is con-
| stantly under attack" he said, capital
Is also slow to invest Potential compe-
tition from another proposed plant is
another factor that enters in. In short
what return will capital invest money
upon? is the real question. When you
have found that, you have found what
constitutes a reasonable return"
Corporation Counsel w. c.. Lambert
made a general talk on corporation rate
controversies, and said that in his per-
sonal opinion, 2 per cent would be q fair
rate for the electric light company in
Omaha.
Mayor Dahlman, and Commissioners
Hummel and Jardine were present, but
said they merely came for information
and would not speak.
II was after this that Mr.. Howell took
the floor and began to unfold his figures
on the water plant Mr.. Howell held that
the way to appraise a plant for rate
making purposes is to determine what it
is worth now for the purpose for which
| It is constructed. while Mr.. Lambert held
that the method OF determining the cost
Of each part OF plant will stand the
test better.