Evening star., 1932-02-14
APPLIANCE SALES
FIGHT HITS SNAG
Decision in New York Case
Proves Favorable to Pub
lie Utilities.
BY GEORGE Z. DOYING.

Although the agitation against sales
Of appliances by public utilities has by
no nesns ceased. 1t appears TO be max
ing little If any headway and has just
been given setback by the repJrt
adopted by the New York Public Service
Commission holding that the practice
Is justified on the ground that lit is
necessary function in order to pro
woe adequate service to the public at
reasonable rates"
The experience in Kansas and Okla
homa' the two State which a year ago
enacted laws prohibiting public utilities
from engaging IN the merchandising
business, apparently has not been such
as to encourage other States To take
similar action.
Sales Decrease.
1t has been reported that total sales
OF appliances in the two States have
cropped off about $4,000 900 and that
the principal benef1ciaries have been
the mail order houses and chain stores
instead OF the independent merchants
who were supposed to be benefited by
the legislation.
In only two CT the eight State Iegis-
lctuIe5 new in session have anti-rler-
thaHdis-ng bills bean introduced this
yc@T. They are Massachusetts and
MISSISSIPPI, and there is no indication
as yet that the mes sures stand any
chance OF passing. similar effort was
made In about dozen States in 1881
A Special Power Rate Investigating
Committee. created by the South Caro-
lima Legislature last year, recently made
an exhaustive report on the electric
utilities of that State and recon-
mended merely that the companies be
required to keep separate accounts of
their merchandising business A similar
was made by the New
York commission, which has lust com.
pleted a thorough investigation Of the
subject of appliance sales by utilities
In my opinion" says the opinion.
r. Maltbie, the record herein provides
no basis for an order of the commits
sion prohibiting merchandising 1t Is
desirable, however, that utilities should
engage IN merchandising only when il
is necessary in order 10 provide for the
introduction of appliances upon rea-
sonable terms and to supplement what
private agencies are doing"
Authority Discussed.
The report discusses at length the
question of the legal authority of utility
companies to engage in the merchan-
diSing business and fnds that the right
OF electric corporations and of gas and
electric corporations to deal in electric
appliances IS not open to question,
although some doubt exists as to the
rights of gas corporations. 1t was held,
however, that both classes of utility
have right To deal in appliances when
the business is reasonably carried on
to promote the use of gas or electricity.
Sales b. chain stores dealing chiefly
in gas and electric household appli-
ances amount annually to about Sl9l.-
100000, according TO a recent report
bv the Department of Commerce. The
262 cheins in the field operate 4472
ra.ail establishments and employ more
than 10000 persons, who recei--e more
than sS5 100000 year in salaries and
wages
Public utilities operate 219 of these
chains and TeCCr-e5 salcs Of s141,-
70lf99, or about II per cent Of the
to-. cales of all household app,iorce
chains
tCopvr.g,t 1897