The Washington times., 1916-01-08

tic Company IL indicated from the fol-
lowing summary OF the handsome divi-
dends which the railway company ~haa
been receiving from its absolute owner
ship Of the capital stock OF the power
company.
Five Years Dividends.
During the past five years, including
the periods immediately preceding and
succeeding this increase in the canital
stock OF the Potomac company, the
dividends on this stock were as follows;
lyiv-s per cent on 5000, 900. 800, OO0. 90
lsll-g.3 per cent on 5000. OOO. 4e5 9te. OK
lslS-I.9 per cent on 100000. =. $4,000. 90
isis-lO.5 per cent on 100000. :. $50. OOO. 90
wIt-W per cent on s6.OO0O0O. 80. 60O.O00.OO
Is also interesting. as bearing on
what may or may not have been the
motlVes which prompted this increase
N capital stock and In reference to
E,olonel HardinR's observation. to recall
thet during the years immediately pre-
ceding this action public utiiitiea com
missions in various parts Of the coun-
try beginning with New York. were
revising gas and electric rates on the
a ~. that per cent 70 2 per cent
per annum in dividends on the capital
stock OF gas and electric companies was
tair rate Of return. and that N thew
exceeded this amount the rates charged
From the fG5 ssrse must be toe high
-
mat DESPITE the 20 per cent increase in
capital stock Of the Potomac Electric
rover COMPANY. only a year passed
before the dividends were back on a
AS stated there may be some dispute
as 70 whether the Potomac Electric
rover Company, by developing It's
Great Falls water power site, could
nave cheapened the cost OF producing
current with a consequent reduction In
rates. This Is q matter on which ex-
pert testimony alone can pass. Col. w
e. LanRfitt. Of the Engineer Corps of
the army. who made a special study OF
ing whether the Government should
take over the site and erect a Joint
water supply and electric power plant
recommended that this or some similar
project nearby should be undertaken
To be sure. Colonel Langfitt was estI-
mating costs on the basis merely of a
plant which would supply light and
power to the Federal and District gov
eminent buildings. but. II anything.
lessen the unit costs.
What Government Could Do.
He found that the Government could
generate and deliver all the current
from such q plant any paw all interest
ana sinking fund charges on the cost OF
installation at 81 mills. or less than
.NNAAt DcI hAON1lG OF. eACluhlNC
Of interest and sinking fund charges.
at 81 mills per kilowatt hour. whereas
the average cost 10 the Government and
the District OF Columbia for all cur
rent consumed in 1912 under existing
methods of supply from both Govern
ment and privately owned steam-driven
plants was something over cents per
kilowatt hour.
In the hearing before the Maryland
Public Service Commission. which re-
suited in reduction in the price Of
electric lighting current for residences
from 10 cents to S.5 cents Der kilowatt
hour, 1t was found that the Pennsyl-
vsnia Water and Power Company,
at McCalls Ferry. Pa. coud make cur;
rent and deliver IL to the Consolidated
Gag and Electric Company OF baltimore
at the very door OF BalamoF ,,;,o SKY
hour: and that the total operating ex,
penses Of the Consolidated Gas ana
Electric Company. including the COST
of the current so purchased taxes. ana
ali other expenses except fixed charges
and depreciation amounted TO lNa Genus
per kilowatt hour.
1t has been the sole purpose OF TINS
series Of articles to lay before the pub
lie OF Washington such facts as The
Times was able TO gather, in order that
the public might for itself judge Wheth.
err The Times was justified in the beliet
that the electric lighting rates IN Wash
ington are too high and ought to be cut.
IL has been shown that the proposed
cooking rates offered by the company
as a concession to the people or wash
ington actually mean little or nothing,
and that out OF a total OF 5000 Gus
toners Of the company. only seventy
live could hope for any immediate bene-
ats.
AS for the electric rates. the position
has been taken that, inasmuch as COM
PARSONS OF rates prevailing in various
cities are subject to all the inaccura-
cies possible from varying conditions,