Evening star., 1934-04-15
UTILITIES SAVING
TO PUBLIC CITED
Chief Accountants Report
Intended to Answer BIan-
y
toms Charge.

man, the commissions chief ac-
countant.
The report is intended as an answer
to recent criticism of the commission
by Representative Blanton, Democrat,
of Texas, who charged it with wasting
public funds and failing to fight the
utility corporations in the courts
Blanton said the commission reached
most of its decisions by agreement
with the corporations.
Representative Otter, Republican,
OF Pennsylvania, will use the informa-
ton in the report, in an effort to have
the House restore 40 per cent reduc-
ton in the salary item of the COM
mission. Riley E. Elgen, acting chair
man of the commission, has declared
the drastic cut would restrict the &C
tivtties of the commission and make
its work of regulation almost i'm
potent.
Report Shows Saving.
Bachman'S report shows the cost of
the commission since its creation
amounted to $1,277, ,34O95, which he
said is negligible" when compared
with the savings resulting from
Its activities. These savings, effected
Through rate reductions, the account
ant pointed out, average S537, ,684 a
year, which Is a ratio of 88 to l to
the cost of the commission.
The report also sets out that Wash
ington. as result of the commissions
activities. is enjoying about the lowest
utility rates in the country. The cost
OF electric service alone, it was shown,
IS lower than any other place in the
United States, including municipalities
with publicly owned electric plants.
Definite rate reductions were not
made" the report declared, until
the completion of the original valua-
tions, and although all findings of
the commission were carried into the
courts by the companies, the COM
mission issued its first rate reduction
in July, 1917, whereby electric rates
were ordered reduced.
Rate Gases Taken to Court,
"This order, as well as subsequent
orders affecting electric rates, was
carried into court. On December 81,
1924, the consent decree was entered
commission, after a hearing, by its
order No. 9l9, modified the terms of
the decree entered in the original rate
and valuation cases. The last-men-
toned order substantially enhanced
the amount to be reflected in the
reduction of rates to the consumers.
Notice of dissatisfaction with the
action of the commission was given
and within the statutory period the
matter was carried to the Supreme
Court of the District of Columbia.
The case was heard before Chief
Justice Wheat on preliminary motion
to dismiss and finally by Justice
Luhring on its merits. After pro-
longed oral arguments and briefs had
been filed, the court sustained the
order of the commission. The saw
ings to the public as the result OF
these orders, up to December 81, 1888,
aggregate $8,6O1,769."
Savings Are Listed.
Other savings, listed by Bachman
as resulting wholly from orders Of
the commission after prolonged in
vestigations, examination and studies,
follow:
Telephone (since July 1, 1925,
under which fiat rates were reduced
from SIS a month to $475 and two
party line calls allowed were increased
from 35 to 40, $802,600.
Limiting payment on hand sets,
$4,000.
Gas rate reductions, $1,5oO,OOo.
Refund of deposits for extension Of
gas mains, $4,000.
Refund of deposits for extension OF
electric mains, $50,000.
Transfer of operation of gas appli-
ance department, 100000.
Other savings and benefits to all
consumers brought about by commits
sion regulations which Bachman said
cannot be estimated in dollars, in
clude:
Inspection of street car tracks and
equipment, which insures operating
safety and accident prevention.
Inspection of gas and electric me-
ters.
Inspection and regulation Of gas
pressure in pipes in city streets, as
well as a daily check of heating value
of gas. .
Exercising control over and limiting
the setting up of reserve accounts,
thereby reducing operating expenses.
Eliminating from operating ex-
penses, contributions and donations.
Fixing longer period of grace for
payment of bills.
Fix Rate of Interest.
Fixing the rate of interest to be
paid on consumers deposits and pay
ment thereof to consumers.
Reducing costs to consumers for eX-
tension of services such as gas and
electric.
Requiring the vestibuling of all
street cars.
Extending transfer privileges and
reducing payments therefor.
Amending contract for joint gener-
alton of power, resulting in reduction
in operating costs to power company.
Eliminating submetering Of elec-
tricity.
Offsetting these savings and bene-
fits, Bachman pointed out, we're cer-
tain increases in street car fares part
1y due to orders of the commission and
partly to court decisions and orders.
However, he said, "all these increases
we're subsequent to the hey-dey of the
companies prosperity, the first in
crease becoming effective in October,
1918.
The additional cost to the patrons
by reason of these increases cannot
be estimated with any degree of ac-
curacy. However, by applying the
4.
Of the period subsequent to January