The Waterbury Democrat., 1935-01-09
Powermen Correcting
 Old Rate F allacies
Commenting on Past Year, Ferguson Explains
 Development of Current Misunderstanding

"The misunderstanding which
 now exist between a section of the public and the electric industry will be cleared away as soon as recognized representatives of the opposing view will set aside all i preconceived notions and give calm
 and careful consideration to the
 facts of the case.
 | "The industry is by no means free from blame relative to the sit- | uation which has developed out of
 an original, perfectly natural, mis- take.
 "The mistake of the public was
 in complaining about the wrong
 thing and the industry made the
 mistake of taking the complaints
 at face value instead of seeking
 and remedying the real grievance. l "The public wanted to use elec-
 tricity literally and at prices with
 in the reach of the family budget.
 While they might be able at the
 then existing prices to use a little
 light the cost of doing more was
 prohibitive and therefore, the pub
 lie originally complained about the
 only price 1t could see which was
 the top rate of eight, ten or twelve
 cents. They could not be blamed
 for attacking the only thing they
 the top rate established to pro, ] vide adequate revenue for small | usage, had nothing to do with fair | prices for increased usags; in fact
 it was the duty of the industry years ago to both make this fact plain and to offer lower and prac- 1 ticable prices for liberal use. But generally they did nothing of the
 kind. They simply stood pat and | told the public that 1t was mistak- en in claiming that the rate under atatck was high. From this start
 1t was only to be expected that the politicians seeking votes would take up the battle on behalf of
 tehir constituents and they, know ing even less of the economies of power costs than their constituents, created the new issue of extortion
 and robbery. The politicians knew
 no difference between the high top
 rate of which their constituents | complained, and the low average rate which they saw combined with liberal usage over the border
 In Canada; and what more natural
 than the charge of robbery when comparing a local ten cent rate WAIH IWV SS"eo ShJ"JOu oSA0oo s"O | border.
 The industry, smarting under at- tacks which 1t considered unjust, l either fought back with charges | of misrepresentation for purely po- | litical purposes, or else did what
 was even worse, by taking the path
 of least resistance and in hopes of stilling complaints, gave in the rec | duced both top rates and earnings below proper economic levels. The
 error on the part of the public was through ignorance in complaining about the wrong thing. The course of the politicians in seeking to ob- | tain for their constituents what they requested was only natural both unfortunate but not in either case knowingly wrong act. On the other hand the industry had not the excuse of ignorance be- cause in spite of its better know | ledge that to lower top rates and earnings would harm the public
 more than the companies. 1t went ahead and did both of these things and thereby has greatly hampered
 itself in rendering that greater de- gree of service which the public has a right to expect. To have
 knowingly done wrong by commit ting an economic sin would appear
 as a far greater offense than, in | error. to complain about the wrong
 thing.
 with higher level of earn ings, the industry would of course
 have today, funds available to pro-
 mote that greater usage which
 alone can bring electricity abund-
 antly within reach of all. and if 1t | had not yielded and uneconomical- | ly reduced the top rate for small | usage those customers who today
 desire to use liberally, would not l'have to bear the burden of .1ak- | ing up for the deficits created by
 serving the small user below his true cost.
 .These sins and backward steps | of the industry are not recognized I by the public as such but are mis- | takenly looked upon only as halt | ing and unwilling steps taken uns der compuIsion and in the right die
 rection. Can any misunderstandins
 be more complete?
 But today the industry has rec ognized and Is moving to correct | past faults by making low prices available for liberal use In the | home. This is tho reason that the | popular response to increased pos | iiticai agitation Is so surprisingly small-aud 1t makes logical the be- iicf that before very long accusa- ton and recrlmination will give | way to dispassionate considera- | ton of inesca pabie economic facts II ----------------
 | Tripidad's new deep water har.