The Washington times., 1916-01-08

tfic Company Is indicated from the fol-
lowing SUMMARY Of the handsome divi-
dends which the railway company >has
been receiving from its absolute owner
ship of the capital stock of the power
companv.
Five Years Dividends,
During the past five years. including
the periods Immediately preceding and
succeeding this increase in the capital
stock of the Potomac company, the
dividends on this stock were as follows:
l9lo-S per cent on s., 900. 900. :. 800 900 90
lMl-9.3 per cent on 5000, 900. 465. BAG. .05
isi2-L9 per cent on $4,000. 900. -. 4750OO 90
lsl3-lO.5 per cent on 81. .0OO. .OOo.. $50 900 90
l',t-io per cent on 100000. 00Ooo.O0
1t Is also interesting. as bearing on
what may or may not have been the
motives which prompted this increase
IN capital stock and in reference to
Colonel Harding's observation. to recall
that during the years Immediately pre-
ceding this action public utilities com
missions i'm various parts Of the coun-
try, beginning with New York. were
revising gas and electric rates on the
assumption that 6 per cent to I Der cent
per annum in dividends on the capital
stock OF gas and electric companies was
fair rate of return. and that II they
exceeded this amount the rates charged
From the foregoing, however, It Is seen
that despite the 20 per cent increase in
capital stock Of the Potomac Electric
Power COMPANY only a year passed
De1ore ." the dividends were back on a
AS stated. there may be some dispute
as to whether the Potomac Electric
rower Company. by developing it's
Great Falls water power site. could
current with consequent reduction in
rates. This Is matter on which ex-
pert testimony alone can pass. Col w.
G, Langftt. Of the Engineer Corps OF
the prospect with view to ascertain
ing whether the Government should
take over the site and erect a Joint
water supply and eelctric power plant.
project nearby should be undertaken.
To be sure. Colonel Lanefltt was esti-
mating costs on the basis merely Of n
plant which would supply light and
ernment buildings. but. II anything.
computations for a larger project should
lessen the unit costs.
What Government Could Do.
He found that the Government could
generate and deliver all the current
from such a plant any pay all interest
and sinking fund charges on the cost OF
installation at 81 mills. or less than
cent per kilowatt hour. or. exclusive
Of interest and sinking fund charges.
at 81 mills per kilowatt hour. whereas
the average cost TO 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-drivcn
plants was something over cents per
kilowatt hour.
Public Service Commission. which re-
suited in reduction in the price OF
electric lighting current for residences
from 10 cents 10 50 cents per kilowatt
hour. it was found that the Pennsyl-
vania Water and Power Company.
which operates the water-power plant
at NcCalls Ferry. Pa. cordd make cur.
rent and deliver It to the Sons0,,itna1eo ms,,t,nnsa
at the very door OF Baltimore. sixty
miles away. for = cent Der klowatt
hour: and that the total operatng eS,
Electric Company. including the cost
of the current so purchased taxes. anu
all other EXPENSES except hxed caarEes
and depreciation amounted 10 l"r Genus
1t has been the sole purpose OF this
series of articles to lay before the pub
lie OF Washington such facts as ihe
Times was able 10 gather: In order tha'
er The Times was justified in the behet
that the electric lighting rates IN Wasn-
ington are too high ana ought to be cut
1t has been shown that the proposed
cooking rates offered by the company
as concession TO the people Of Wash
ington actually mean little or nothing.
and that out OF total OF 5000 Gus
Of the company. only seventy
i've could hope for any immediate bene-
fits.
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,