Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-01-30
UTILITIES DEPOSIT
| PRACTICE UPHELD
/ IN FORMAL ORDER
Certain Rules to Be Followed
by Corporations Set Up
| by Commission.
ACTED ON COMPLAINT
OF CONSUMERS GUILD
Tleharty Discloses He Declined to
( Represent Group, Holding
Custom to Be 0. K.

The Public Utilities Commission in
a formal order handed down today de-
cided that the practice of public utility
companies in the District of requiring
deposits of certain consumers before
service is connected is reasonable and
in accord with public interest. At the
same time the commission set up GER
tain rules to be followed by the cor
porations in requiring these deposits.
The rules become effective February /.
The order follows public hearing
d1eld on December 10 by the commits
sion at the instance of the Washington
Consumers Guild, whose director, E. G.
Regal, declared that the practice was
illegal and had never been sanctioned
by the commission. The commission
admitted at the times that it had
never issued any orders authorizing the
practice. The orders issued today,
therefore, are the first on the subject.
although the practice has been in ex-
istence for years.
Regal yesterday asked for writ of
mandamuS to compel a ruling.
Recites Authorities.
After reciting authorities from cases
In court and before the Interstate Com
merce Commission, the preamble in the
order goes on to say:
Losses due to uncollectable bills are
treated as deduction in determining
the amount available TO pay return on
the value of the property of the util-
tiles; consequently, those who pay their
bills in effect. also pay the bills of those
who fail to pay. It is, therefore, in the
public interest that losses on bad ac-
counts by utilities be held to mini
mum. Guarantee against any such losses
is only provided by full prepayment, but
in the case of metered or measured
service such prepayment is difficult to
carry into effect and would be more Of
an inconvenience than the payment of
a deposit as a condition to giving
service.
1.-The action of the Potomac Electric
Power Co. and the Washington Gas
Light Co. in disconnecting service fur
nished to E. c. Regal upon his refusal
to answer questions designed to es-
tablish his credit or to pay a deposit,
and the action of the Chesapeake &
Potomac Telephone Co. in refusing to
because that organization refused 10
answer any question or pay deposit,
was not unreasonable.
1.-THE commission, is Of the opinion,
however. that the rules of the WASH
ington Gas Light Co., the Georgetown
Gas Light Co.. and the Potomac Elec-
trio Power Co. in force should provide
some measure of the deposit to be re-
CURED It appears from the evidence
that the practice of these companies is
to require deposit estimated to be
law 10 fvf-n
reason that consumer will have had
that length of service before the COM
pany can disconnect his meter. 1t Is
therefore ordered.
Amended Rules Ordered.
'"That the Washington Gas Light Co,
the Georgetown Gas Light Co. and the
Potomac Electric Power Co, file with
this commission amended rules, which
will contain provisions designed to put
into effect the following principles:
Applicants for service shall be re-
ouired to make a deposit unless they
establish their credit to the satisfaction
of the company. The amount of the
deposit required shall not exceed the
estimated bill for two months service
except that where such an amount Is
less than S. the deposit shall be So
cit Is further ordered that hereafter
when service is discontinued the final
bill rendered by the utility shall have
credited thereon the consumers de-
post, If any, including interest thereon
and If credit balance is thereby shown
in favor of the consumer the utilities
shall transmit with such final bills a
check made payable to the depositor
for such credit balance.
"That order No. 657 dated December
81, 1926, is hereby amended so as to
require interest to be paid on deposits
date the deposit is made until the date
the service is discontinued"
Peoples Counsel Ralph B. Fleharty
told chairman Capper of the Senate
District committee today that he de-
clined last month to represent the
Guild in its plea to the Utilities Com
mission to abolish the system of de-
posits, because he thought 1t contrary
to the interest of consumers generally
to require the companies to furnish
service Unfortunately without some
safeguard.
Riegel has previously complained to
Senator Capper that Mr.. Fleharty had
refused to represent the organization
before the commission. Senator Capper
sent the complaint to the peoples coun-
sci, and received the answer Of Mr..
Fleharty today.
Mr.. Fleharty told the Senator he had
advised Mr.. Riegel that if the latter
would amend the petition to provide for
an inquiry into the reasonableneSs of
the deposit, he would have supported
the guild in seeking to find out If the
amounts required as deposits should be
changed.