The Washington times., 1916-01-05

other cities in a list of thirty compiled
by the Public utlhties Commission
here. Baltimore, just forty miles away,
pays, as stated, so cents; New YORK
pays s to SIS cents. Atlanta, Ga. pays
"a cents. Denver. with "a population
two-thirds that oil Washington, pays .
cents; Bridgeport. Conn. Genus: Grand
Rapids, Mich, cents: Los Angeles,
Cal, SIS certs; Louisville. GEMS; New
Haven, Conn, cents. Oakland. Cal, Z
Louis. 9.5 cents; San Francisco. cents :
Seattle, cents; Spokane, WASH, .
cents. Many OF these cities have no
minimum charge and some allow q, dis
count for prompt payment or blils'
rather than imuosc penalty Tor celaE.
Such a comparison. however. Is Justly
subject to criticism fdr the reason that
conditions OF manufacture, capitaliZa-
In some and particularly in those
where the lowest rates obtain, water
power furnishes the current instead OF
steam and, consequently. except for the
being one day manufactured here from
the Great Falls, there would De no es'
cuse for citing them.
To ge; at the question as to whethAr
the Potomac Electric Power CompaAy
is charging excessive rates for lighting
on the ba sis of cost of production alone,
woIld not be fair because or the iact
that without a complete phSsichl NaiY-
alton OF the company's properues' S ~ -
impOssible fairly to compute the nXeil
charges and CeErocintion costs whlch
which should be added 10 the cost ~
nroduction. Such a valuation, Is
Understood. will shortly be unoeI Itnhs,. ,ittaa
nv the experts of the Public Utilities
Son,rniss,on To make the current IN
washington It costs the Potomac @ hieC,
tric Power Company about thlrtH-se eH
hundredths of a cent per klloWatt nout 4;
but this does not include the costs ol
distribution. fixed charSeS anu ""'"
ances for depreciation t.i-
What does seem, however
and readily accessible test -.
whether the Potomac Electric fo"er
Comnany charges excessive rates Is
20 inouire whether it's earnings. az
represented in the rate OF dlvldehu
actually paid on its capital stock, are
excessive. II this rate or dlNl0eh'I
Is too high when compared win what
Experience has taught public utility
,,nIp,r,Jssions elsewhere is fair rate
of return, II can only mean that the
Potomac Electric Power Company Is
charging at least one class or $
patrons too much money for electric
current
Regulation In Boston.
In Boston. the Massachusetts Gas
and Electric Commission, adopted in
the regulation of the gas rates there
what is known as the London Sliding
Scale, That is to say, starting with
the assumption that per cent Is a
fair profit for the owners of publi9
utility stocks to receive. it establish
ed a rate which would yield that and
then told the company that for every
reduction of cents per l,OOO cuDlC
feet of gas, which 1t might thereafter
make, IL could increase its DIVIDEND
rate one per cent. The New Yorh
commission adopted a similar method
in fixing the gas rates in that CITY
In arguing successfully for a reduc'
ton OF electric rates in Baltimore
Albert c. Ritchie, the Peoples advo,
cate before the commission. contende
that per cent was the most thai
should be allowed the Consolidate
Gas and Electric Company, grossly
capitalized as that company was.
The present dividend rate on the
common stock of the Potomac Electric
Power Company is 10 per cent. II
1914, DESPITE a 20 per cent increase
.in it's capital stock outstanding, tho
dividend paid was 10.5 per cent.
Lest 1t should be raised as evidence
of the local company's generosity tC
its patrons, let a word be said as tt
the announcement In the company''
rate-foIder regarding free lamp re
newals. Saws the company: "Carhor
and Gem metallized filament lamps
standard, pear shape), from to 4