The Washington times., 1916-01-03
ELECTRIC RATES TO
AFFECT FEWPERSONS
Only Seyenty-five Subscribers to
Experience Decrease as Re-
suit Of Change in Price.
tcOntInued .rom FIrst Parel


great deal mas been presented from time
TO time in official reports to the House
and Senate Committees on the District
of Columbia. Never before. as FAR as
facts been gathered together into a
general summary and laid before the
public Of Washington.
Affect Few Persons.
Whatever may have been the purpose
Of the Potomac Electric Power Conn
pany in putting forth the proposed new
rates for cooking and heating, the fact
remains. that. whereas just seventy
i've persons in the city could hope for
any immediate benefit from them, the
24t20 other purchasers OF nghttng cur
rent at the present time are payIng eN-
cessive rate. 'lne succeeding articles in
this series will attempt to convinceN the
Public OF Sk.s fact.
In the first of these articles facts will
be presented to show that the approved
new rate for cooking and heating can
only benefit those householders OF the
city who already own electric ranges,
or who are able to install them; and
that the benefit" which even these
favored persons will get will be on the
score OF convenience rather than econ
omy. The company itself Knew when
the rates were proposed of only
seVenty-flNe persons VINO own electric
ranges, the cost Of which is greatly in
excess OF gas ranges.
In the next article the question OF
electric lighting rates will be gone into.
The present lighting rate for house
holders and apartment dwellers OF 10
cents per ki owatt hour for current
consumed during the first 10 kilowatt
hours use, monthly. of the connected
load" and cents per kilowatt hour
for the excess thereof, will be trans
lated into terms Of popular language,
and in such way as to show that as a
practical proposition the secondary rate
of cents never applies to the dweller
in the house or apartment. Facts will
he presented to show that the primary
rate of 10 cents is excessive when COM
pared ID with the rates in other cities;
(2l with the cost of production; and 90
with the profits made.
In the next two succeeding articles
facts will be presented by way OF eX-
planning these excessive rates. 1t Will
be shown that by virtue of remark
able arrangement between the Potomac
Electric Power Company and the WASH
ington Railway and Electric Company.
the railway company. which owns and
controls outright the power company,
gets more than half the output OF the
Potomac Electric Power Company's
plant at less than cost. while the other
customers of the lighting company are
paying enough to cover this loss and
pay handsome dividends on the power
company's stocis 1t will also be shown
by detailed figures from the sworn re7
ports of both Companies that the Wash
ington Railway and Electric Company
gets the entire dividends from the stock
of the Potomac Electric Power Com
pany: and, from these dividends. Is able
to pay handsome dividends on its own
outstanding stock, despite the fact that
the transportation business of the
Washington Railway and Electric Com
pany alone is carried on at loss.
Control of Great Falls.
Finally facts of an interesting char
acter will be presented with reference
to the manner in which the common
owners of the two companies acquired
control of the Great Falls water power
site and the present status Of this
property. These facts will show that
for ten years the Washington Railway
and Electric Company carried this alb
sOlutely unproductive two-thirds interest
in the Great Falls site at its purchase
valuation of S42o,0OO: that at the ex-
piration OF that time it agreed. in re-
turn for S1.000.OOO in stock of the Po-
tomac Electric Power Company, to
turn over this interest to the power
company: that the Potomac Electric
Power Company's directors, who are
identically the same persons as the di-
rectors of the railway company, in
creased the capital stock of the power
company 20 per cent to carry out this
bargain: and that in consequence of this
dividends on this Sl.O0O.OOO at the rate
OF 100000 year. although the asset
represented. by this 81 900 900 Is not only
absolutely unproductive. but, two years
ago, was valued by the railway COM
pany At only S425.OOO
All these matters with which this
series of articles will deal are now
being considered by the Public Utilities
Commission. Pending at the present
time is an order of the commission on
the Potomac Electric Power Company,
to show cause why the present rela-
tionship between It and the Washing
ton Railway Company should not be
broken up. 1t is plain from the order
of the commission that this body, at
least, regards the relationship as detri-
mental to the public interest and that
II stands in the way of a proper re-
adjustment of lighting rates.
"A remarkable feature Of the situation
is the fact that the Potomac Electric
Power Company and the Washington
Railway and Electric Company have
never denied the fects OF this remarkable
relationship. Nor nave they denied that
the present arrangement between them.
whereby the railway company gets its
current at less than cost is not in ac-
c9rdance with the original contract en-
tered into between them. BY the terms
of this contract, not only was the rail-
way company to pay certain charges
on the plant of the power company, but
q fair profit for the current 1t obtained
for its street-car service.
Defense of Company.
All that the companies have set up
by way of defense in the past. accord
ing to officials of the Public Utilities
Commission. is that the present ar
Tanaemcnt is a mutually satisfactory"
modification Of the original contraCL--a a
modification. II must be borne in mind.
aRreed to on behalf of the Potomac
Electric Power Company by directors,
who. at the same time, also represented
the railway company.
every effort has been made, to avoid in
justice to the two compa nies; and the
conclusions sought to be driven home
are only those which have stood the
test OF careful checking UP. In fact,
with respect to every statement made
concerning the ownership of the PO-
tonlac Electric Power Company by the
Washington Railway and Electric Conn
panY. the profits enjoyed by the latter,
and the rates and disposition Of the
dividends. is taken from the sworn re-
ports of the companies on file at the
Public Service Commission. The facts
concerning the relationship between
the two companies with respect to the
current used by the railway company,
arc taken from the sworn to and un-
e9ntradieted testimony OF the con-
Taission's investigators. The informa-
ton concerning the Great Fa!ls water
mower site deal has been taken from