New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-10-07
Mccall Public Service
Board Made Compact
with Edison Co.
BOUND THE CITY
FOR THREE YEARS
Concerns Counsel Holds
Price Cannot Be Touched
Until 1918.

Service Commission, 10 prove thaI al
order OF the commission under the
craftsmanship Of Edward +. Mccall,
fixing the electric light rate to consum-
ers for three years beginning May l.
1915, was made in pursuance TO Sc
cret agreement between four commits
sioners and representatives of the Ne"
York Edison Company.
An executive conference was held
yesterday by Commissioner Hayward,
J. W. Lieb, president of the Edison
company; Arthur Williams, of the same
company, and Milo r. Maltbie, repre-
senting the Mayor. Another will be
held next Wednesday, and Commission
err Hayward then will report the result
of his investigations TO the full com
mission before public hearing,
scheduled to be held on October IL
BY the terms of the 1915 agreement,
the New York Edison Company was not
to be troubled by the Public Service
Commission or about rerating for a
period of three years. However, II con-
ditons in the commercial world so
changed that the New York Edison
Company found itself getting into q
hole financially. the company reserved
the right TO appeal to the commission
for an increase.
Agreement Comes TO Light.
The existence of the alleged secret
agreement came out few days ago,
when Mayor Mitchell sought to reopen
the old Edison case, started over four
years ago on the complaints of George
IA l.. 4 81 Il
eral hundred large consumers of cleo
trio current. John A. Carver. counsel
for the New York Edison Company,
promptly told the commissioners that
the case could not be disturbed until
the three-year period was passed. Tie
then produced letters from eXPublic
Service Commissioners Edward f. Nc
Call, George V. S. Williams, j. Sergeant
Cram and Robert c. Wood confirming
the agreement with the officers of the
New York Edison Company. The fifth
commissioner, Milo r. Maltbie, who had
held out for a rate Of six and one-half
cents per kilowatt hour until the last
moment-when he voted with the ma
jority-was left in utter ignorance OF
the compact.
Following two hearings before the
commission on September % and Sep
TENDER 29, at which the attorneys for
the New York Edison Company sought
70 prevent reopenlng Of the case,
series of executive conferences was de-
cided upon to work toward a compro-
mise. The first of these conferences
took place yesterday before Commits
sioner Hayward.
"No Public Service Commission could
tie the hands of the city or a SUISSE
quent commission in a matter affecting
the electric light rate" said Commits
sioner Hayward. 81 don't know what
will become of the present attempt to
reopen the Edison case, but whatever Is
done will be done regardless OF the
agreement between the officials Of the
New York Edison Company and the
former commissioners.
The letter from circumstance Nc
Call acknowledging the agreement with
the electric light company was dated
September Is, 1916 and was also signed
by ex-Commissioner Williams. 1t was
read into the records OF the Pubic
Service Commission by Mr.. Carver for
the New York Edison Company. After
reviewing the history of the Edison
cases Mr.. Mccall states:
"Under these circumstances. having
no satisfactory evidence before 1t as
to the value OF the company's prop
erty upon which TO predicate rate,
but deeply impressed with the ne
cessity of giving the public immediate
relief from the rates then charged,
the majority Of the commission, hav-
ing determined what they deemed TO
be a just and reasonable maximum
rate, felt justified in entering into an
agreement with the officers of the
Edison company. whereby an order
describing such rate, which would
amount to an annual saving TO the
consumers of electricity OF approx
mately 100000, would be accepted
by the company without appeal, upon
condition that the company would be
free from any further rate litigation.
or an appraisal Of its property, for
q period of three years, beginning
May /, 1915, when the new rate was
10 20 into effect, the company giving
as It's reasons for accepting such or
der a desire to meet the wishes Of
the commission, considerations Of
public policy. desire to bring to a
close a case which had already di-
verified the attention of the officers
and operating staff of the Edison
period Of over three years, and the
desire TO save the labor and expense
Of litigation, which it was estimated
would cost the company upward Of
$3.50, 900.
To BE Rid of Litigation.
"A further induccment on the part
OF the company TO agree to the ac-
ceptance Of the order was the desire
10 be free from rate litigation or any
phases thereof, for a period of three
years.
"The order was drawn with the in
tention that il should remain in eff
feet for a period OF three years and
thereafter until changed or abrogated
by the commission"
Mr.. Carver then read a letter from
ex-COmmissioner j. Sergeant Cram
stating that "it was agreed between n
majority OF the commission and the
representatives. Of the New York Edi-
son Company that as consideration
for prompt acceptance by the company
Of the order and the eight-cent rate
without appeal that the company
would be free from further rate litiga-
ton for a period Of three years from
the time the order was 10 take effect
namely. May /. 1915 -and IL was upon
this understanding that the order was
entered. aud no appeal therefrom was
taken"
The letter from Reconnaissance
Wood read By Mr.. Carver before the
com mission stated in effect the same
AZ the other letters.
Calls Agreement Ironolad.
Commissioner Hayward. in challeng-
inv the validity % the agreement,