Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1916-02-29
BALLARD FINDS ELECTRIC
LIGHT COST PADDED
Continued from Page One

Continued from Page One
pany plant on the Cleveland basis of
rates; that is 3 cents per kilowatt hour
instead of 10 and 12 cents charged here.
He also said that If the Philadelphia Elec-
trio Company adopted the Cleveland scale
of charges 1t would not lose by 1t. as,
after about two years the increased num-
ber of consumers attracted by the lower
rates would more than make up for the
loss involved in lowering the rates
In 1914 Mr.. Ballard said. the company
earned S1,937174 above a fair rate of re-
turn on its investment. His figures were
based on a table which he submitted yes.
terday In which he appraised the company
at S23,5S3,756. which he gave us the sum
at which the company's property could be
reproduced new, as against $51,562, ,045
given by Prof g. d. Jackson, expert for
the company.
Mr.. Ballard explained why he had
struck out several big items in Professor
Jackson's appraisal,
STRIKES OUT COST OF PATENTS.
The patents and copyrights which Pro.
fessor jackson had included to the amount
of S4,609,473. Mr.. Ballard said he had
struck out because the patents had for
the most part expired and the surplus to
which the company was not entitled under
a fair rate of return had been sufficient
in recent years to write off these patent
and copyright charges
He also struck off an item of S5, ,O0O, 900
listed in Jacksons appraisal as going
concern value and cost establishing the
business" He assigned the same reason
for that cancellation. He said that the
high price of a commodity increased the
cost of selling 1t and that the cost of
selling II was usually included in the
charge for the commodity.
Items approximating S10,000,000 could
fairly be Cancelled from the companys
appraisal. said Mr.. Ballard, because in
two or three years the surplus earnings
had more than cancelled them as fair
charges
Mr. Ballard then showed exhibits to
demonstrate why the cost of lighting
could be reduced to consumers. supposing
the same methods used by the Cleveland
electric lighting plant were followed here.
BY these methods the lighting rate in
Cleveland had been reduced from 10 to
cents per hIowatt hour. His table of
figures. based on what he thought could
be allowed on the basis OF the Cleveland
standard, is as follows:
Reproduetion cost OF property. S2S, ,bBs, 1853
10 per cent. allowance for de-
preeiatlon .''''-'-'''''.'''''' S'5SIo4b
Present fair value. $40. OIs, sOs
7 per cent return on investment. 81, 4O3, ,235
per cent. for depreciation ,.... 70T.512
Taxes ...,.....,,...,,...... 225.5OO
Total .................,....,. 's.sasOI7
Unit cost OF operation in Cleveland
Increase s allowed for higher cost OF 'OiO''S
coal here ..,......,s......,..,. .oOI2
TetAI ;..,;...,..;.....;......... ,Oil77a
Philadelphia Electric Company. .0l2
XVIII output in 1914 in PhiIa-
Aiio@shse Tor total operating cost 1''1'i'''i
yssa ss 'ssss ssss Gsi e. sissn sSss Ssss sIR
r,s Tosai allowance '5.42Asas
reisi 'sfs siis~sns. a a:is :. iss is!sS sc
Surplus revenue over allowance
Investment ....,....,..s,... s1.sSLl74
HOW RATES COULD BE CUT
Explaining the reduction Of 1s ia par
cant Tor municipal arc lighting and ss
per cent. for residence lighting and COM
inercial lighting and power, Mr.. Ballard
said the average rates would be as fol-
lows IN this city, on the basis OF cents
per kilDWatt hour:
For municipal arc lighting ..... al
tor eot.sInereial arc lighting s........ s.6
- eeinalsEciai "a peEsSs .-..-... 25
kor eauluercial lighting ............ AZ
For Ee1ldance lighting ............... 6bb
rhs average for these was 2..s6.' which
eould BE- the average here, said the ex-
pert e the Cleveland methods we're
4a0etea aud only 3 fair rate or return
on investment taken by the company. The
company would have earned on this basis
s6 4za.Sz8 "a 1914 Ths hearing today is
before commissionsr Monaghan
SUGGEST SO PER CENT CUTS
IL references u tie rates proaossd IN