Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-17

known that many enterprises. subject
to competition which you do not have
to fear, are satisfied with a return
which is far less.
'In the case Of any utility serving the
public, the reaSonableneSs of its rates
must be tested in several ways. 1t IS
not enough that they are low compared
with similar charges in other localities.
There must be considered all the perth
nent facts, such as the cost of render
ing the service in question, the profit
made after providing for all operating
expenses and its relation to the fair
value of the property used and useful
in such public service. II company
strives to maintain a schedule of rates,
which by any such tests are too high,
will the greater return compensate for
the feeling on the part Of its customers
which will be thus engendered? On the
other hand, would not the friendly at
titude Of its customers, If the company
pursued different course, be well worth
what it would cost?"
Backs Sliding Agreement.
The commission next goes on record
as holding that under paragraph ID of
its organic act it can set up sliding
scale by entering into an agreement
with the company and disregarding the
consent decree so long as it honestly
determines that such a course would
be necessary and reasonable.
The letter states:
THE commission Is well aware such
action on its part might and probably
would lead to litigation, and it has
distinctly evinced its desire to avoid
| litigation if this be possible. On the
other hand, it may be just as well to
state right here that the commission
believes the sliding scale should be
modified (the word should is under
lined) along lines which it has indi-
| Gated and If, to accomplish this pur-
pose, it becomes necessary to take the
| matter to court or if any action taken
| by it is challenged before the court, the
commission will not hesitate fer a
moment to use its utmost endeavors
! to secure favorable action by a court
| on any prayer which it may make. or
to defend most vigorously before court
| any action which it may take"
Shortly after there follows a state
ment that the commission, by entering
into the consent decree in the first place,
does not consider itself estopped from
reValuing the property of the company
! at any time, quoting from paragraph
8 of its act, to the effect that the COM
mission may at any time on its own
! initiative make revaluation Of the
property Of any public utility After es-
| tablishing this position, the commission
then calls on the company to reflect
upon the relative advantages of an
agreed value, as at present, and the value
which might result from a valuation
proceedings at this time when COM
modify prices are generally low.
The letter concludes
1T is the intention and the desire Of
the commission that all of the matters
treated herein may be placed before the
officials CT your company who determine
it's attitude, its policies and its actions
1t is urged that they think seriously OF
the effect of any decision they may
reach. The commission desires you to
confer with it once more, and as soon
as possible after your board Of directors
has acted At that time it will expect
you to state clearly, definitely and final
ly just what attitude you assume, just
what. If anything you propose to do, OF
are willing to do about this matter
Thereafter the commission will very
promptly decide what action it will take
in the premises"