The Washington times., 1916-01-06
Measuring a little patients chest
development.
the principal and interest OF tn,
bonds of the power COMPANY
Heard By Commission.

|
bonds of the power company
Heard By Commission.
Last August there was a hearing be-
fore the Public Utilities Comm. ssion in
the matter of this agreement. The tes-
| timony, uncontradicted by the power
| company, showed % that the power
| company had constructed and owns the
power plant and machinery; ca that the
| railway company did guarantee the
bonds; but that (3) the railway COM
pany gets its current from the power
company at less than cost; that 90 IT
| sells a part of the power so received
and pockets the profits; that (5) the
ment provided. pay per cent interest
on the property of the power company
used in the manufacture of the current
1t gets, and that t6l the amount &C
which, by the terms of the agreement
was to have been agreed upon. nor
| does it, in lieu of an agreed pront, pay
| the alternate rate of 10 per cent on the
cost of production specified in the
| agreement.
| Uncontradicted at any point and not
even ss-eXamined by counsel for the
companies. the statistician of the com
mission, testified as to the details or
the present ARRANGEMENT. From the
sworn statements Of the companies and
correspondence between them and the
commission, he showed that OF the
UI.UV
| duced by the Potomac Electric Power
Company. it retained 43,Oi9,S34 for com
mercial light and power to its custom
ers. and that the railway conpan;y
| took 57,9Q .0S6 kiloWatt hours lor RAN
The sworn annual reports Of the two
| companies for the year 19l3-and the
statistician testified that conditions
were practically the same for l9li-the
power production expenses for the year,
exclusive OF maintenance were, for the
power company 1853 go aS ., and Tor Inc Inc
railway company $l72.2Si3G. In other
words that the power COMPANY.
using AZ per cent of the power
generated. paid about A per cent
Of the expenses, and that the railway
company, using 81 per cent. paid o3 per
cent OF the expenses. For the main
tenance of the power plant. exclusive
Of buildings. the power company pa,a
s43 665. TO- and the railway COMPANY >.St
| For the maintenance expenses or TIC
power plant buildings the PotoinaS &c
Electric Power Company paid S'4l.;'S
and the railway company nothing. Ihc
for depreciation on account Of the Ben
| ming plant. whereas the power com,
tpanv charged off sloS,OC7.2l for general
amortization including the Bennihs
From this 1t was shown the power
| company paid sl9S, ,G6S. .36 and the railway
company Sl72, 20 for power production
expenses at the plant for the year. IN,
|
The witness then went on to show
| from his figures that the average COSY
of producing the power at the nm plah' @ ,os
O367 cents (three hundred and sixty
seven thousandths of cent? per klio'
| watt hour; and that the power company
| paid O461 cents and the railway com,
| panv O297 cents for the power received
by them respectively.
At Less Than Cost.
"That a norton of this current which
the railway company received from the
Bennings plant at apparently less thar
cost" testified the statistician, lis solo
at a profit appears from the following
As stated above, the railway company
paid s172 24l.7 70 for the production of Al
the mower received by it from the power
| plant during the wear. The annual re
port of the company shows that it pur
chased power from some other sources
not stated at a cost of $6.S2S.30. Thi
gives a total of $4,000 as the cost of al
the power received by the railway com
pany during the year. The total or tn
subStation expenses, transmission ex
penses, and distribution expenses 70
all power, including both the power sOi'
! to other railways and the power uSe'
, ! by the railway company for the carry
ing on of its own business of transpor
| tatlOn Is sfU,0oVoL' DIS SiNHh ~ W al
nual report The report further show
!, that a portion of this current was sol
to railway companies for s257, 44692.
I'm other words. this amounts to say
ing that the railway company received
trans sformed. transmitted. and distribut
ed all the power used by it free of cost
and in addition, sold enough to max
a profit of s37,ol6.l0.'
, In still other words it would appea
from The testimony that If no sue!
agreement existed between the tWC
companies, II tive Potomac E!ectri
, Power sold direct to the Washington
, Railway Company the current the lat
: ter usos at cost, and sold direct 10 thc
| other lines which buy from the Wash
} ington Railway and Electric Company
II would 1t appear, receive, in add
; ton to its present gross income. thu
} sum of S25I 81. or the amount whiC!
? the subsidiary railway Companies pa!
the Washington Railway and Electrl
Company.
Supposition Incorrect.
This supposition. however, is not al
accurate ono, for, of course, IL the power
company sold separately to the Wash
inGtOn Railway and Electric and to thu
lattcr's subsidiaries. the Washington
hallway and Electric would not taxi
the amount of current it now. tak"'
from the power company.
Assume. however, that the Potomac
\ Electric Power Company. instead o
letting the Washington Railway an'
Ele,tr" Company have its current q
| less than cost would CHARGE 1t the sam
price which the WASHINGTON IailWdi
and Electric Company charges itS sub
salaries for the current 1t resclls them