Evening star. [volume] (Washington, D.C.) 1854-1972, 1924-12-28
b,O)O TO SHARE
$2,0O0,O()O REFUND
IN LIGHT RATE CUT
Procedure to Return Money
to Power Users Yet to
Be Decided.
RECEIPTS NOT NEEDED
TO COLLECT SUM DUE
One-Tenth of Charges for Seven
Years Is Unofficial Esti-
mate of Return.
BY j. A. O'LEARY.

Seventy-five thousand users of elec-
tricity were wondering last night
how much they will get back indi-
vidually out of the approximately
10000 TO be returned to the pub
lie as result of the unexpected set
tlement reached yesterday in the
seven-year controversy over electric
light rates.
Officials Of the commission and the
company said last night that it is
impossible to predict what the aver
age refund to consumers will be, for
the reason that the amount impound-
ed was not the same throughout the
seven years of litigation.
Figuring it roughly at 2 cents on
every 10 cents collected by the com
pany during the seven years, the re-
fund on the whole impounded fund
would be 20 cents on each dollar
paid. In the settlmeent. however.
1t was agreed to divide the amour;
impounded equally between the com
pany and the public. which means
that the rebate probably will be about
10 cents on the dollar the consurs-.
has paid.
Calculation Unofficial.
This is merely an unofficial calcu-
lation, however, since the compan.
and the commission have not yef
worked out the details of the enor-
nous task of distributing so large an
amount of money among the thou
sands of claimants.
s. Russell Bowen. general counsel
for the power company, announced
last night that work will be started
Immediately on the drafting of set
Of rules to be followed in returning
the peoples share of the impounded
fund. AS soon as the regulations are
ready they will be given wide pub
licity.
Mr.. Bowen said that the first step
probably would be to have blank
forms printed to be filled in by con-
sumers in applying for their rebates.
The company, he said, will employ
a large force of additional clerks to
handle the distribution of the money.
Consumers are requested to wait for
publication of the forthcoming rules
before taking any steps to get their
money.
Long Period Expected.
Mr.. Bowen explained that a rea
sonably long period probably would
be allowed consumers in which to
apply for the = refunds.
Mr.. Bowen laid it will not be nee
essary for Consumer to have his re-
ceipts for the sast seven years in or
der to get his Sebate, but he advised
those who haNA their receipts to re-
tain them merely as a matter of good
business In case any dispute should
arise over the amount to be re-
funded.
Persons who have moved away from
the city since the litigation began will
have the same right to apply for the re-
bate due them for the time they were
consumers, Mr.. Bowen explained.
Estates May Apply.
Asked what would be done in cases
in which consumers have died since the
impounding began, Mr.. Bowen said their
estates would be entitled to apply for
the refund.
Corporation Counsel Francis H.
Stephens explained last night that couu-
sci for the company and the commission
would prepare a decree and submit II to
Justice Stafford in the District Supreme
Court some time this week to authorize
disposal of the s6,O0o,000 Of impounded
money in accordance with the compro-
mise arrived at yesterday. Approximate
ly s500.000 is to be taken from the i'm
pounded fund to cover taxes. leaving
about s5,5oo.0o0 to be divided between
the company and the public, making the
peoples share close to s2.SoO,oO0.
Cut Applies to City.
Although the reduced rate Of 7i2
cents agreed to yesterday applies only
within the District Of Columbia, 1t was
indicated by company officials last night
that they hope to find a way to extend
the reduction to all of the nearby Mary
land suburbs served by the local power
company.
The reduced date of 71a cents per
kilowatt hour is for household current.
but Maj. w. e. r. Covell. assistant to
the Utilities Commission, said last night
that the commission probably will ap-
prove an order within few days pro-
viding for reductions also in the various
rate schedules for current used for COM
mercial and industrial purposes.
Bowen Statement.
Discussing the compromise In gen
eral. Mr.. Bowen made the following
statement:
Settlement of the litigation has
been reached at great sacrifice of
claims, which the company Is con-
vinced 1t would have been able to sus-
tain if the proceedings had been con-
tinued Realizing, however, that the
public should be considered, the COM
pany has made these sacrifices as to
claims and hopes the whole settle
ment will work out as satisfactorily
as 1t is believed 1t will"
William Mex. Clayton, chairman of
the utilities committee of the Fedora
ton of Citizens Associations, visited
the District Building yesterday after
noon, and, after comforting with Maj
Covell. expressed himself as gratified
over the compromise as a whole.
Sought Settlement.
Mr.. Clayton, more than a month
ago, suggested to the Public Utilities
Commission at a public hearing on
electric light rates that some steps
be taken to reach an understanding
with the company that would put a
stop to the impounding of large sums
of money paid by electric consumers.
Mr.. Clayton had in mind at that
time tentative agreement that
would be effective pending a final de-
termination of the valuation suit in
court. 1t apparently was not hoped
at that time that the commission and
the company would be able to effect a
permanent compromise.
THE big thing in this settlement,
as see it," said Mr.. Clayton, "is that
1t affords the people an immediate and
actual reduction in rates, which they