The Washington times., 1923-11-06

On 7 ARIO'S
SUCCESS
CITED.
Continued from First Page.l


tressed by visit to Ontario where
he infinitely inspected the centrai
power nlant, the subsidiary distri
hution plants in q score Of cities
and towns and the methods pi
financing. and auditing. He de-
clares the United States far out
stripped In, this development by, Q
province which the average Amer.
lean thinks of as Incompatible In
any way to his own State.
In an Interview today, Director
King sketehed the Ontario Hydro
from it's. Inception, and told from of,
ficial reports, what II Ii doing for
the people and the province.
The movement was initiated In
boards Of trade and chambers OF
commerce. and the lack Of indigenous
coal in the province had much to
do. with the formulation OF the plan.
In 1903 a large delegation from
several municipalities appeared IN
Toronto and laid their case before
Premier Ross.
They did not ask for government
ownership" Director King explained.
"They did ask for a bill to enable
the interested cities TO inquire about
the supply and distribution OF cleo,
tricAI energy.
THE bill passed. the cities ap.
pointed q commission Of four buai-
ness men and an electrical engineer.
It went to work and in 1905 made a
comprehensive report of 30 conciu.
siveF o character that 1t revolution.
lied the thinking Of progressive On.
tari0 business and public men aud
beeane the basis Of the act OF 1905.
On this act and subsequent add.
tions. Hydro is founded.
They talked thus:
The Niagara river is our river.
!" Companies to which we have
presented the right to utilize a part
of our river are making huge profits
On inflated eapitalizations, hence
the higher rates.
let III have q new deal, form q
partnership OF municipalities and
make sosas profits for ourselves out
Of our river ts
Has Flourished Nightly.
Under the act. the hydro-electrlc
power commission of the province Of
Ontario came into being, to flourish
nightly in the years following. II
is kept virtually free Of the reHina
of politics. 80 -,
At first, power was brought from
existing companies, while the com.
mission contented itself with con.
structt0n Of hish.poWer distribution
wires. The key releasing the JUICE
70 fourteen citieS from 3 central
station WAS pressed on October 10.
1910.
In 1912, the wn.chippeWa
plant, to cost $4,000. 900 and have n
capacity Of 10000 horsepower. was
started by the commission. The
world war came on while the work
still was progressing.
The Canadian government urged
the Ontario Power Commission to
rush their plant" Director king
continued his story. Ontario re.
eponded. Pians were enlarged and
the result was an electric gener.
atjng plant that will, when com.
pleted, furnish Ontario with SOC, 900
horse power. The three genera.
tors IN use are taxed 20 kheir. ca,
pacity. and the rapidly increasing
demand. both from home users and
new factories locating In Ontario.
indicates that even this great plant
WIN not give energy enough by the
time It ts completed"
Growth OF The Service.
The growth Of Hydro service frou
!O1O to 1872 ts shown in the follow.
ing tabulations:
l910-760 horsepower and ten
municipalities.
ls22-54t.000 horsepower, 242
municipalities, seVenty.four town,
ships and 900 consumers.
In explanation of the financial
structure under which Hydro oper.
0tee. DiINctor King quoted from
the 1892 report Of the commission,
as follows:
The basic principle upon which
the whole Hydro project IL founded
u set out In the contracts under
which the municipalities enter into
the partnership Of which the com,
mission acts az trustee.
The rates at which power 10 sup.
Piled to the various municipalities
vary with the amount Of power used
ana the distance from the source Of
supply. The entire capital cost Of
the various power GeveIopnaents and
transmission systems are pro-rated
annually to the connected munich.
paIittes according TO the relative use
made OF the lines and equipment.
Each municipality is required to
assume responsibility for just that
portion OF capital employed in de,
Evertng electrical energy to It., to.
gether with such expenses as are
incident to that particular portion
Of the Investment.
municipalities are not Charged
with expenses connected with eduip.
ment or plant from which they de.
rive no benefit or are in no way
Interested.
The entire annual expense OF op.
fatlons maintenance, ADMINISTERS.
"a, interest and sinking fund ard
l11l d recitation are paid out of rev.
rnue collected from the Tnunictpali,
yfles, through the medium Of thirteen
power bills rendered by the coIn.
mission each year. Power bills are
rendered at an interim estimated
rate each month during the year
and thirteenth bIll-Or credit mem.
orandum as the case may be-is
rendered. at the end OF the year,
when the commissions books are
closed and the actual cost deter.
mined.
No Burden on Citizens.
There is no burden on the tax
payers or on non-ussrs and no ave
nue. through which losses, should
they occur, could be absorbed. on
cepI by q direct charge to the CON
tracting municipalities for power
supplied. It should be noted thai
the Hiaktng fund on the debentures
~ treated az an operating expense
ana that, therefore, the naunicipaii
ties are not only paying the interest