UTILITIES: Public v. Private

(2 of 2)

Governor Roosevelt accompanied his commissioners on their inspection, made speeches in rural Republican upState counties in which he envisaged a "second Pittsburgh" arising in that area, predicted speed in executing his plan. Said he: "If you have the kind of government in business that is successful, you pat yourself on the back and say it's fine and no one thinks about its being radical. If you haven't, why, then, everyone thinks it's altogether different."

Meanwhile the prospect that New York might yet be the first State to go in for the wholesale production of power had moved the big power companies that serve New York City to volunteer lower rates. Last week acrimonious hearings were held before the Public Service Commission on the proposal of the New York Edison, Brooklyn Edison, United Electric Light & Power. Bronx Gas & Electric and New York & Queens Electric Light & Power to reduce the domestic rate from 7¢ to 5¢ per kilowatt hour but to add a 60¢ charge to every monthly bill for "meter service." Such a rate cut would lop $5,390,000 off the power company's annual income. The meter charge, however, would increase the price of electricity to 57% of the consumers. A consumer at the reduced rates would have to use more than 30 kilowatt hours of electricity per month to get his money's worth from the meter charge. Thus 20 kilowatt-hours at the present 7¢ rate would be $1.40. At the 5¢ rate plus the 60¢ meter charge the same amount of electricity would cost $1.60. The power companies defended their proposal on the ground that small users of electricity do not pay their full share of the distributing cost.

Governor Roosevelt was quick to see the political effect of upping power prices, under the guise of cutting rates, to a million New York City voters. Said he: "The first principle of utility use is that the small consumer . . . should receive the greatest protection and consideration." The New York Real Estate Board entered objections. Mayor James John Walker ordered his law officers to fight the change before the Public Service Commission, to demand a rate of 4¢ per kilowatt hour and no meter charge.

Monthly charges for 38 kilowatt hours of electric current, a small-home average, produced by private companies in the U. S. cities:

Schenectady $2.90

New York City 2.66

Philadelphia 2.52

Pittsburgh 2.22

Baltimore 2.63

San Francisco $2.03

Cleveland 1.90

Chicago 1.86

Detroit 1.85

Washington 1.79

Buffalo 1.72

St. Louis 1.67

Tacoma 1.14

Municipal plants selling the same amount of current:

Los Angeles $1.76

Dunkirk, N. Y. 1.60

Holyoke, Mass. 1.52

Tacoma 1.43

Canadian cities serviced by the Hydro-Electric Power Commission of Ontario:

Hamilton $.98

Toronto .88

Ottawa .88