New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-06-26
Edison Company
Must Lower Rate,
P. S. G.. Rules
Declines to Relieve Light
Concern of Promise to
Reduce Charges

The Public Service Commission yes
terday unanimously denied the appli-
cation of the New York Edison Com
pany 10 be relieved from its tentative
agreement 70 make a further reduction
in electric light rates on July |. Sew
eral hearings on the application have
beer held before the commission and
mass Of evidence was presented by
the company 20 show that the uncer
tcinty of business conditions in war
times did not warrant the reduction.
Mayor Mitchell was greatly pleased
whom he learned Of the decision. II
has been the Mayors contention from
the start that there was no good rea-
son why the company should not carry
out the agreement OF last November
and reduce the rate at this time. City
chamberlain Mnltbie appeared before
the commission yesterday as the
Mayors representative and stated the
Mayors position.
81 can say that the Mayors position
IS that he desires this agreement, made
six months ago, TO be carried OUT
said Mr.. Maltbie. ut was thoroughly
understood at the time by the Mayor
and others that there were only two
things the company could do, either
come down TO the cent rate or 20
back 70 the old cent rate. IL seems
that everything we have heard here
was discussed six months ago, and we
sec no reason why the agreement
should not be carried out"
Straus Announces Result
Mr. Maltbie made his statement just
prior 20 the announcement Of the COM
missions decision BY Chairman Oscar
s. Straus. H. J. Hcmmens, counsel for
the Edison company, read statement
from j. ". Lieb. vicepresident OF the
company, reviewing the company's
stand in the matter and urging the
commission to continue the present rate
of ~ cents a kilowatt hour until the
end Of the year The commission took
q ten-minute recess and returned with
the decision.
Chairman Straus pointed out the
terms o. lNt ltuLdklNt klftIA'AL v men
the company voluntarily reduced the
rate from. cents TO 7'2 cents and
promised 10 reduce il 20 cents July ],
while at the same time reseving the
ight 10 return 10 the Scent rate on
that date if business conditions war
ranted it,
Decision Is Unanimous
The commission has listened care
fully 10 the statements of company rep
resentatives as TO what they say they
fear may eventually come about Mr..
Straus said, land has analysed the sub
mltted figures as 10 the present and re-
cent business conditions and the earn
ings Of the company. The commission
is clearly and unanimously of the opin-
ion that nothing has been disclosed
which would warrant non-fulfilment Of
the November understanding as TO the
rate after July l, 1917.
The company should put the seven
cent rate promptly into effect. as prom
ised. II at some future time condi-
tions actually develop which prove that
rate 20 yield on an average less than
fair return on the value Of the property
used in furnishing the service, the COM
pany ia Of course authorized by statute
TO make suitable application 20 the
at which time the results
Of the reduction, as shown by actual
figures, can be given consideration
The chairman declared that the COM
mission had reached its decision with
out entering into a discussion Of the
surplus Of about s6O,0OO,000,
as disclosed in the testimony. He said
that they found no proof in the figures
submitted by the company Of the I'M
proftabeness OF the proposed seven
cen: maximum rate and the correspond
in. reductions IN scale.
Company TO Decide Action
Mr.. Hemmens stated that he could
not say what action the company would
take until after the meeting Of the
board Of directors to-day. He said he
would be ready 10 announce the action
of the company tomorrow, and an ad-
tournament was taken until 1880 o'clock
on that day.
II is expected that the company will
probably take advantage Of the clause
in the agreement permitting il TO re-
turn 20 the old rate Of eight cents. In
that event the commission would issue
a formal order for the reduction Of
the rate. and the company might delay
for several months by tax
ing the matter into court Meanwhile
the eight-cent rate would prevail. On
the other hand, Il was pointed out that
u WOULD no an avcaad ngi,r prronttfar