Evening star., 1934-04-27
Inquiries Into Utility Rates
Studied as National Service

Public interest in power investiga-
and under New York State officials
centers largely in the question Of just
rates.
The fact that Representative Rankin.
one of the sponsors for the national
measure. predicts that the investiga-
ton will result in a reduction in the
costs of light and power to the ulti-
mate consumers of this country of not
less than S50,000000 a year. to begin
WITH" is received by the Wall Street
Journal with the comment: "A saving
of $50, 100000 a year. to begin with
would represent. on the present con-
sumption OF electric current, reduc-
ton of all consumers bills by an aver
age Of a little less than per cent.
But the effort of the utility regulators
has been and will be to favor domestic
and small commercial consumers, who
number about 23.70O 900. For these a
reduction of $50, ,000, 900, If they got all
of it, would mean 4.3 per cent less
to pay. On the average domestic con-
sumers' yearly bill this would save not
quite S150 annually. Or, if small
commercial consumers were excluded
and all of the S50.000,0 which Repre-
sentative Rankin confidently expects
to flow from the scientific factual study
were given to domestic users alone.
they would be relieved of almost rs
per cent of the burden and have s2.47
more every year to spend for luxuries.'
A higher estimate of the value OF
these proceedings is offered by the
Christian Science Monitor, which holds
that. both in Washington and New
York, public utilities are facing a
showdown" and declares further: 1T
may be that public utility opponents,
in linking dozen New York legislators
with throwing their votes for utilities,
are taking this way to stir up the
public. At any rate, this is precisely
what has happened. Varied and point
ed charges of unfair business practices
within the utilities had no such elec-
trifying effect on legislators. And
while the public has been tolerant
toward many weaknesses, it will not
consciously countenance lobbying OF
such vicious type as that alleged to
be threatening the very foundations
of American democracy. In any con-
troversy of this sort, it should not be
overlooked that charges, however long
and loud, do not necessarily ndlct
the whole structure of utilities. On
the contrary, utilities, as whole, nave
much to be said in their favor. But
the public somehow cannot reconcile
sincerity of purpose with solid utility
front against investigation and regu-
lation. Presuming that utilities as
whole are sound, would 1t not be real
benefit to the industry to have this
proved to the public? Investigations
may. as many utility experts say. be
wasted effort so far as they are con.
cerned. But is anything wasteful
that brings out the truth?"
An estimate of the New York in
quiry is given by the New York
Times, with the statement: THE COM
mittee is instructed to inquire into
any attempts on the part of the utili-
ties to influence either legislative ac-
ton or the nomination or election
of public officials. If the trail leads
into the banks, it is to follow it there.
At the same time it is to report on
the conduct and operation Of the
State Public Service Commission,
especially in the handling of rate
cases. This is not the first investi-
cation of the kind in this State. Only
q few years ago the Legislature un-
dertook a study Of the local regula-
tory system, which resulted in several
rival reports. characterized by the
usual cleavage between radical and