Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-15
RETAIL SALE BILL
MEETS OPPOSITION
Legislative Committee Gives
Adverse Report on Measure
Affecting Utilities.
BY GEORGE E. DoYING.

The public utilities have just won the
first skirmish in what bears indications
of being concerted movement, con-
fined at present to the West, to prevent
the utilities from engaging in the SELL
ing of appliances.
The State Affairs Committee of the
Kansas House of Representatives has
made an adverse report upon a bill de-
claring it to be unlawful for any cor
poration owning more than 10 per cent
of the capital stock OF any other cor
poration to retail merchandise of any
manner or form. Another measure is
pending which is designed to prevent
public utility corporations themselves
from engaging in such business. The
bill rejected by the House committee
was intended to prevent a public utility
from continuing such business through
subsidiary corporation.
Proposed Laws.
Bills designed to bar utilities from
the merchandising field have been in
PRODUCED in the Legislatures of Indiana,
Nebraska, Oklahoma and California. as
well as Kansas. Most of these proposed
laws contain descriptive language so
similar as to lead to the conclusion
that all originated at the same point
but it has not been disclosed what or
ganization, If any, is fostering the move
ment.
Agitation against the sale Of appli-
ances made by public utilities has been
gaining in force lately. This branch of
the utility business has grown enor-
mously and the relation of the sales
department to the question of rates
~ "a f1vs A1A Aria iXxf &c nj
tracing increased attention. It is gen.
orally conceded that coal gas company
may legitimately sell its by-product of
coke or that an electric company may
supply lamps for signs when the charge
therefor Is included in the rate for
electricity used to illuminate the sign.
Most OF the utilities insist that they
must promote sales of stoves, heaters
and other devices in order to increase
consumption of the product necessary
to operate such appliances. Other deal
ers complain that the utilities under
sell, grant ruinous credit terms and
make use of collection system by adj
ding the monthly payment to the Serv-
ice bill.
From the public standpoint. however,
the more important question is how far
a utility should be permitted to go in
promoting such sales. If appliances are
sold at less than cost, the difference
obviously must be made up from some
source. If that source lies in the rates
charged to consumers, the question
arises as TO whether the increased con-
sumption created by the appliance sales
is sufhcient to lower the rates at least
as much as they may be increased by
losses in the SAFES department
Wisconsin Law.
Wisconsin is the only State that has
undertaken definite solution of this
problem. Its Legislature in 1929 en-
acted law requiring public utilities to
separate their merchandising business
from that of rendering heat, light or
power service. and the State Railroad
Commission last September adopted
rules defining the method by which this
shall be done. The law expressly pro-
vides that neither profit nor loss from
the sale of appliances or other mer-
chandise shall be taken into considera-
ton in the fixing of rates for service.
(Copyright, 1881