New-York tribune., 1918-03-05
1t Encouraged Closing uB
of Private Plants,
Is Charge
Assured Coal to
Those Who Agreed
Allegations Come Up at
Special Meeting of Com.
merce Commission

The New York Edison Company VOC.
terday was accused of taking adv,n
tage Of war conditions to cncopr.u.
the closing up of small private elcctr;.
plants and offering a hotel the assv,-
ance of a coal supply for heating nu,.
poses on condition the hotel closed H.
own electric plant and bought current
from the Edison company.
These accusations were mado .,
hearing before the Public Service Gov,
mission on the advisabiity of eliminat
ING all private electric power and heat
plants as measure for fuel conser.
vatlon and substituting the service of
central plants, such as the New York
Edison Company, in this city. An in.
vcstlgation of the merits of sucb
plan has been invited by the National
Fuel Administration, and is now bciny
made throughout the country. Shu,.
ting down the private plants hero ;s
of course, favored by the Edison com
pany's officials, who read figures be.
fore the commission to show how nri.
vatc corporations had effected SAVING
in coal by closing down their plants
and buying Edison current.
Accuses Company
i am Just as patriotic as anv man.
and want to do anything to save COAL
SAID Walter !. Salmon, representing
the Apex Leasing Company. of Forty.
second Street and Sixth Avenue ~
think 1t IS pretty bad for big pubic
service corporation to use the war as j,
cloak to take over more business at
the expense Of othcrs.'
Copeland Townsend. manager of the
Hotel Majestic. said he had been in
formed by representative Of the Ed,-
son Company that he would be able
to get all the coal he needed to heat
ms hotel If he would stop the opera
tlon of his electric plant and contrac,
with the Edison Company for tho cur
rent necessary to operate his light'
aud elevators. 1t was the New Yorl
Service Company that was 10 furnish
thc coal to the Majestic if the Maiest.
bought current from the Edison
Proved Expensive, He Says
Mr.. Townsend testified that he wa.
afraid of a coal shortage and that ht
would be forced 10 close down hi;
plant. so he signed with the Edison
Company. He said he saved 27O tons
of coal in ten months by using Edison
electric current, but it was expensive
11771 in electric current bills.
The Majestic. so Mr. Townsend tes.
titled. burned 1922 tons of coal. cost
ing S21 ,S60.7A. in the ten months end
ing March |, 1917. The hotel electric
plant generated power and light cur
rent from this fuel supply. For the
ten months ending March /, 1918. the
Majestic coal bill was S26,34i.99 for
1882 tons used for heating alone
The Edison bill was S14,117.7l extra.
u have found that electric light cur
rent is almost, if not entirely, a bv-
product of the steam used in heating
the hotel" said Mr. Townsend. But |
made the contract with the Edison
company because of the uncertainty OF
the coal situation. When the agent OF
lPc company came to see me he in
formed me that if ] would sign con.
tract the Edison company would give
me the name of a company that would
furnish coal"
,.Wh was this representative of the
Edlson company?" asked William L.
Ransom, counsel for the Public Ser
wee Commission.
81 don't remember his name" said
Mr.. Townsend. but he gave me the
name of the New York Service Com
pany.'
Had Faith in Power
And YOU felt certain that the New
York Edison Company would be better
apie a,pie to get coal than YOU" asked Mr.
Ransom.
Yes
And You think the company did get
The coal for youo"
Il think got the coal through the
recommendation of the Edison Com
pany, said the witness. Il couldn't
md any one tina: would assure me a
supply OF ccal, and | went TO all the
coal merchants in the city. The New
York Service Company did give me that
assurance"
Mr.; Townsend said Mr.. Heath Of
'he EDISON Company dealt with him IN
making the contract
The New York Service Company, the
witness said. had offered TO run the
heating plant as wel as furnish coal.
ne sad he knew nothing about any
financial relationship between the Edi-
son company and the coal concern.
VIZ. townsend was cross-eXamined by
counsel for the Edison company and
admitted freely that it was n good deal
colder this winter than last and that
ms coal was not Of such good quality.
,Nr. townsend told the commission that
ne tnought coal saving could be effect
co II the commission would order the
Ealson company to make "break. down
contracts ts-that is. furnish current in
'he summer months and over week,
ehos and holidays. when un6reds OF
private plants are not REQUIRED TO use
coal Tor heating purposes.
VIZ. salmon said that the Apex Leas-
ing Company operated big Turkish
path, and that it could genrrs's car
rent for electric lights at Z cast G.
cents per kilowatt hour. much cheaper
than the Edison company could sell
the current. Thomas +. Fa.lon, CHIEF
engineer of the Hotel Belmont, estl-
mated that the cost of electric lights
lor the hotel was $40 cent per kilo'
watt hour, furnished BY the private
plant IN the basement of the Belmont
Made No Saving
Major John T. Tumbridge. manager
OF the st. George Hotel Brooklyn. sala
that the hotel plant had broken down
some years ago in the middle of winter,
I'VE installed Edison service apd
used it for about ten days" said Mr.,
Fupbridge. I'VE decided to make .
test and see if we could save money oy
CONTINUING IFS vs, W. found THAI