Arizona republican., 1921-02-18


 a letter to the legislature in which it defends its position in raising rates for public utilities
 The letter, which covers F closely typed pages, is signed by the three commissioners, David F. Johnson, chairman; Amas A. Betts and Loren Vaughn. The explanation for the message is given in the opening para graph:
 For some time past, and particu- lariy during this session of the legis- lature, there has been so much discus sion of the corporation commission and it's activities in connection with the regulation of utilities that we have deemed it proper in justice to the com mission and the general principle of regulation. to address this communi- cation to you"
 The only promise made for lower rates by the commission is that when the price of pipe, poles, fuel and most of the essential commodities involved in public utility operation is lowered, rates will also go down.
 we would like to see public utility rates established at figures far below the 1916 levels-we would also like to sec steamships plying on the Salt River. Our immediate plan, however, is to continue conservative regulatory pol icy and to attempt to the best of our ability to exercise such supervision over public utilities as will result in the lowest rates compatible with good service and healthy development of Arizona's public utility companies, IS a statement made by the commission. Governor Charles A. Brough of Arkansas. in order to obtain a nation wide view point, sent telegram to the governors of all states asking express ions on the subject of supervision or the affairs of public utilities. He re- r.>tx frr re which were the views of Governor Campbell and Frank c. Lowden. form CT governor of Illinois, who touched upon commissions in his talk before the legislature a short time ago.
 The letter to the law makers follows in part:
 Tn explaining his vote on a measure which contemplated making a utility of one of the large industries of our state . one of the members of your body stated in substance, that he voted against the measure for the reason that the com mission invariably, upon application, raised rates. This was an astounding statement when it should have been known that the railroads of the state /applied for an increase on state rates similar to that granted by the inter state commerce commission on inter state rates. This application was filed May p. 1920. and was denied. The
  order to the interstate Commerce com mission and hearing was held in Phoenix before Examiner keeler which began January 31 and continued TOT three and one-half days. During the progress of this hearing the railroads introduced an exhibit which showed that had they been granted the rates applied for they would have received in revenue S1099s2.97 per month more than under present rates. 1t was rather strange that the statement of the hon orable member. above referred to, Was made on one of the days in which tnis hearing was being held. This IS only one of the high spots in connection with railroad rates
 As to electric, gas and water rates our files contain fairly compete ms tory of public utility activities since our organization in 1912. To present the matter fully and fairly would re- ouire d lengthy technical analysis which would require an undue amount of our time to prepare and or your tirne To examine.
 We cannot present an exact analysl: of the water business because no, many utilities have tRe, Heans ol measuring the amount of water solu However, based on the use of 5000 gal Ions of water in a. number Of larBei towns 1t is shown that the charge a' 1921 rates is 16.7 per cent lower tnar at the 1912 rates. and the charge al 1916 rates was 14.3 per cent lower thar at the 1912 rate.
 Telephone rates and gas rates ar' admittedly higher than the 1912 levels Tn 1912 the telephone situation was de plorabie. In some quarters compeu' ton had forced rates below the pom at which decent service could be given and in nearly all parts of the state tn properties were badly worn and who'll inadequate. This situation is cleare' up. but rates are higher.
 With respect to gas service, the fol lowing figures are based on the cost o 5000 feet of gas in each of nine Arizon; towns: The charge in 1916 was 2. per cent lower than in 1912. and is nov z6.7 per cent higher than in 1912. Tn increases granted amounted to 6S pc cent of the amount applied for by tn gas companies. The average sellin price of all gas sold in 1914 was SIG per thousand feet and s1.75 in 1919, a increase of 4.2 per cent. The increas would be somewhat larger in 1920, bu we are unable to state just how muc because the reports for 1920 Are not ye received. The principal cause for in creased gas rates is the increased cos of petroleum.
 Right now oil is down in the mid continent field, but if the Californi producers have dropped we have bee unable to prove it. and oil from Okla hopa. when same can be found suffi ciently free from sulphur to serve a gas oil. is very expensive delivered i Arizona
 The manufacture of ice while course differing in its details from tn production of electricity. is comparabl Tn great many respects. Oil is gen erally used as fuel. To the best of ou recollection, ice sold in Phoenix in 191 at 40 cents a hundred pounds. Todd hundred pounds costs "a cents. whil small blocks are sold at higher rate 25 pounds selling for 25 cents
 Various bills have been proposed the legislature to regulate the iC business. and whether or not this fat has had a restraining influence on tf retail price Of the ice we do not knoy
 'The war is over. other things al coming down. Why not public utilit rates?" We are asked this questio frequently. The answer is that price of pipe. poles. fuel and most of Il essential commodities involved in put lie utility operation have not abate Until they do, rates must stay Il When they do, rates will come dow promptly.
 We would deem our work 10 be failure if through unreasonable r, strictions and Limitations we hs driven capital from the state and r, farded the daNo1onn1ent of Ari.o,,