Evening journal., 1918-02-16
electric COSTS
arr FUfNI. HE'D
BY TRACTION CO.

Ui INnUtlUH uCs
Continued From First Page.)
advanced coal and other costs to the
Industrial consumers.
The letter submitted by Vice-Presi-
dent Wilson IS as follows:
Wilmington. Dal. Feb. "a. 1918.
Board Of Public Utility Commission
ers Municipal Building Wilmington,
Del.
Gentlemen SIN response TO your
letter OF February 18th / enclose here
with a sworn statement Of our auditor,
giving statistics OF the Wilmington ana
phnsdelphia Traction Company
III Is not possible TO state just what
the gross cost Of power delivered TO
the railway department Is, because the
underlying railway companies own
much Of the real estate, huildlnSs'
freight sidings and considerable parts
Of the generating equipment and there-
fore contribute IN addition TO the man
ufacturlne cost. the use occupancy ana
deprecia' ion OF their property toward
ne entire oneration. and this is the
reason for the Interstate Commerce
rulino. TO which our auditor refers. IN
der the foregolng conditions no fair
comparisons can be made between the
cost of electric power as genera ed ana
used by the railway department ana
the expense Of generating and distrlD-
ufiae electric current 10 our lisht ana
power customers In units varying from
one-half K. W. 10 5000 X. W. OF capacity
4 would respectfully call your al
tentlon 10 the fact that the statement
Of operating earnings and expenses OF
fhe Wilmington and Philadelphia Irac-
tion Company contained IN my letter 10
YOU Of February comprises all de-
raftments Of that company. ana the
question OF inter-department operations
has no bearing on the cost OF deliver
ine light and power service TO the con-
kumers' meters.
las the light and power department
seus its service delivered to meters on
the premises Of the consumer ana not
Al the switchboard OF the company
nIant. the cost at the switchboard Is
onlv one OF several items which enter
into the cost 10 us 20 give service, ana
consequently the cot delivered Is the
proper basis for comparison OF all SGT
vice Of this character,
ssWe wish to repeat our former state
o,enf that the. proposed schedule OF
rates IL lu accord with the best mod
ern practice Of rate making ana tne
relations Of the various rates 10 each
other are equitable and much simpler
than our old rates. 49,,
in conclusion ! would again can
your attention TO the fact that we
have assurances from number OF ue
banks IN Wilmington that they VIII
loan us the money necessary TO COM
plete the work now under way at our
plant and make further extensions, pro-
vided we are able through increased
rates 10 show earnings sunlcient to JUS
tify them. II will be necessary to Sc
sure this money promptly in order that
the work may be continued, | would,
therefore. ask you to give your deci-
sion in this matter at the earliest pos
sihle moment.
~sNegy respectfully yours,
''T w. WILSON.
Vice President"
Along wi'h Mr.. Wilson's letter was
submitted the following statement from
Clarence r Yost, auditor Of the COM
pany. and sworn 10 by him giving sta
tistics requested by the Public Utilities
Board
NO stipulated price Is charged rail-
.vav department for current furnished,
as we are required by the Interstate
Commerce Commission TO divide our
EXPENSES proportionately between the
various departments affected The daily
average bower required by railway de-
partment during December was 1880
iiillowatt hour.
'.The average cost Of manufacturing.
and delivering power for the month Of
December. 1917, was 9 POO Gems per
kllowatt hour This does not include
any interest, taxes, rental, or depreci-
alton.
Notwithstanding what Is apparently
a subs antial margin between the man
ufacturing cost and the selling price In
reality the amount left after paying act
nai operating expenses Is only six
fenths OF one cent per kilowatt hour.
which Is not sutilcient 10 pay interest,
taxes. rentals, depreciation and other
fixed charges
While Il Is true that there is a dif-
ference in the rates charged here--as
everywhere else--to the large industrial
and commercial consumers and the
small consumers. the cost Of serving the
small consumers Is many times that.of
serving the large industrial and COM
mercial consumers.
"The number OF kilowatt hours sup
piled for liehting during December was
s5i.347 kilowstt hours. and for power
purposes 2,50225i kilowait hours
Mr.. Yost's afldsvit also sets forth
that the gross revenue derived from
residence lighting for December was
si7.i52.i0 and It would have heen $1,000
greater II billed at the proposed new
rates.
The amount OF current consumed in
street lighting by the city OF Whining
ton during the month Of December was
5000 kilowatt hours. The contract
prices are as follows:
Arc lights, supported on brackets. s63
each per annum; on center suspen-
siops. S66. on ornamental magnetic,
ss5: ornamental Market street lights
burning all night, s2i 4s; burning un-
iii midnight, si5 "a; 40-candle power in
candescents on brackets, SIC; on center
suspensions, $40.
The statement also set forth that the
interest and rental charges in October
smoun' ed to s53.428 "a; November.
sol $50 OF; December, S50.356 or Il Is
also shown that the first mortgage
snd collateral trust bonds OF the COM
pany amount to si,20600O; Sar equip
ment notes. $4,000; preferred stock,