Evening star., 1934-05-16

small towns and for rural service,
where the rates are generally much
higher than they are in the larger
cities. And the rates published in
this Ratebook are so complicated and
expressed in such technical language
and vary so much in their structure
that only rate experts can understand
them. They beWilder and confuse the
ordinary citizen. This matter OF rates
for electricity is a most vital one, both
to the company that sells and to the
consumer who buys. The consumer
has right to know that he is paying
no more than a fair price, and the
producer has a right to know whether
the rates in force afford opportunity
for a reasonable return on the invest
ment useful and necessary to render
such service.
Wide Variation in Rates.
There is a wide variation In the
rates charged for electricity through
out the United States. Some private
companies and some municipal plants
have gone a long way in supplying
domestic consumers, as well as COM
mercial and industrial users. with rel
atively cheap electric service. Other
private companies and municipal
plants have held to the theory that
the higher the rate, the greater the
return on the investment, and have
therefore resisted attempts to secure
rate reductions. These private COM
panies have fought rate reduc-
tions in the belief that they were
reductions in the belief that they were
protecting their profits, while many
municipal plants have likewise main
tanned high rates in order to secure
large revenues in lieu of taxes.
Experience is teaching, however
that even from the selfish standpoint
of assuring large revenues, high rates
for electric service is a mistaken pol
icy. 1t has been shown in many cases
that substantial rate reductions, in
stead of reducing revenues, induce
consumers to use more electricity, and
thus actually increase both the revenues
and the profits of the business. There
is much evidence to support the view
that we'll considered rate reductions
will mean more certainty Of earnings
for the power industry and tend to-
ward steadier and more uniform re-
turns for the investors.
There is very general belief that
electric rates are too high, and one of
the important items in the program
of President Roosevelt for recovery
and for the establishment of
new and solder base for equality of
burdens and benefits is the making of
electricity available at the lowest prac-
ticable rates. Electricity should not
be an agency for excessive profits for
a few, but the common servant of all.
1t is desired through intelligent plan
ming to put electricity within the
means Of all of the people for use in
the home, store, factory, field and
mine, that burdens may be lifted from
the backs of men and women. This
social and economic objective the peo-
pie are determined to achieve. After
costly yet enlightening experience, the
public is resolved that electric light
and power shall no longer be their
master, but shall instead be their
servant. Electricity should be the in
expensive tool of all men rather than
the wheel of fortune of private greed,
bent on speculative profit through
watered stock and capital investment
write-ups and other forms of fictitious
values, to make a Roman holiday
for a privileged class while innocent
investors and consumers are con-
demned to the role of helpless victims
in the arena.
Balancing the Scales.
This objective of generally lowered
electric rates involves injustice to no
one, but only the balancing of the
scales for every one. Such a program
will deprive no one of property rights,
but will recognize that the property
rights Of the consumers are of equal
dignity with those of the producers
This policy says with firmness, yet
with fairness. to monopoly selling to
a consumer who has but one seller to
buy from. Thus far, but no further"
The plan to assure consumers elec-
trio power at low cost will not be
based upon any visionary theory nor
upon any hocus-pocus formula for
economic relief, but upon a careful
analysis and survey of the whole sub
ject. One of the keys that will help
unlock the door to low rates is the
simple, tried and demonstrated prin-
ciple of volume production and in
creased consumption. In no other
industry Is there better reason to