Evening star., 1938-09-06

Ing the industry will gain in a decade
an additional volume of business equal
to that which required more than a
half century of study and hard work
and an investment of over $4,000
100000 to achieve.
That plant capacity does not neces-
sarily have to keep step with sales of
current is found in a recent report
OF the Federal Power Commission,
which shows that from 1920 to 1887,
although the sales of current of
prlvately-owned utilities increased
three times. this was attained with an
increase of only 81 times the produc-
ton capacity.
The experience under the Washinp-
Ton plan OF regulation in the District
OF Columbia has been: That while the
sales OF electric current increased 81
times there has been an increase of
FL times in the generator capacity
ana an increase in the property in
Vestment Of 2.3 times. This indicates
that to furnish double the sales OF cur
rent ito 100000. 100000 kiloWatt-
hours, from 100000, 900, 900 kilowatt-
hoursp in 10 years it would be neces-
sary to spend at least s40O, 600. 900 an
nually for additional plant and in
creased capacity. That is an increase
OF one-quarter times present invest
ment. In addition about $500. 900 900
annually would be required to replace
Worn-out property
Big Opportunity Seen.
The greatest hope for future electric
business lies in the sale Of appliances
to present customers and their neigh
bors. the prospective customers, and in
the creation of new uses for electricity.
In such circumstances. the future
should afford far greater opportunity
than the past for increased sales at
decreased costs and lower rates. This
being the case. the good will of these
present-day customers is the most de-
sirable thing to have if they are to be
sold more current"
Mr.. Elgen DECLARES that in Wash
ington. where the Potomac Electric
Power Co, is the operating company,
an outstanding record has been made
along these lines. To do this here. he
adds, no new frontiers had to be
opened. no new and uncertain invest
ments had to be made. What has
happened in power development in
Washington should be more than
ray of hope to the industry. 1t ought
to be more like a rainbow. 1t points
to the pot of gold for the stockholders
and the sunshine and happiness with
cheap power for the patrons.
I'm nearly all lines of business.
names of customers furnish the live
llest list Of sales prospects obtainable.
This has been demonstrated during
the past decade as peculiarly appli-
able to the power business. The pros
pective customers of the statesmen of
devices to use more electric current
are known-largely, they are old
friends. A more ideal sales situation
would be hard to conceive; and. fur
thermore. monthly billing affords an
inexpensive opportunity for 'direct-by
mail selling of additional services.
Believes Fight Easing.
The Public Utility Act appears des-
tined to be. construed less harshly
than seemed possible during the heat
and turmoil prevailing in the period
when the bill was in the process
OF consideration in committee, and
particularly when it was before Con-
gress for enactment.
Then there was only charge and
countercharge. 1t seemed that no
quarter would ever be asked and none
given Now things seem less hope
less for the utilities so far as the act
is concerned. With the further in
exorable Intervention of time. more
practical plans for achieving the
broad objectives of the law unoues-
tionably will be found.
Then, too, the Securities and Ex-
change Act will. during the next
decade. when electric production is
destined to double the equity behind
electric utility securities. have the
effect of lending greater confidence
in such securities. enhancing the value
of investments in the industry"