The Nonpartisan Leader Newspaper, May 3, 1917, Page 4

This original timber dam on the Cedar river, furnishing the power for the little cit <ustomers, against 18,000 served by the private corporation that originaly monopoli RIVATE corporations serving the people of Seattle, Wash., with electric light and power have reduced rates during the last 15 years from 20 cents a kilowatt hour to 5% cents. There have been five separate reduc- tions in the private company rates, and there is probably no other city that has experienced a more radical lowering of rates in as short a time. ' The two private electric corporations that formerly existed in the city and the one that now exists have not hesi- tated to slash rates periodically, re- ducing them as much as 40 per cent at a slash, until now they are a quarter of what they formerly were. The present private corporation serving Seattle is the Stone-Webster company, one of the biggest public utility companies in the United States. Besides vast interests in the east, it operates railways and power plants in Tacoma, Seattle, Everett, Bellingham J. D. Ross, superintendent of the Seat- tle municipal light plant since 1911, but connected with the enterprise since 1902 as engineer. Here you see how to get good service and low rates from a privately owned utility. Put a publicly owned plant into competition with it! But, the public plant, if well man- aged gives lower rates and better service— and wins the business! The lesson is pretty plain for any man who has his eyes open. and adjacent country on Puget Sound. In Seattle it goes under the name of the Puget Sound Traction, Light and Power company and is capitalized for $50,000,000. It operates the Seattle street railways also. Why has it been S0 generous in giving Seattle the bene- fit of lower rates every few years? THE REAL REASON WHY RATES HAVE GONE DOWN The first big reduction in Seattle electric rates occurred in 1902, when the two companies then monopolizing the business reduced from 20 to 12 cents per kilowatt hour. The reason for this was that the people of Seattle. were clamoring for a publicly owned light and power plant, and the com- panies feared that the people would build one unless the companies came through with fairer rates. In 1905, when the Stone-Webster in- terests had absorbed the other private plant, Seattle rates were reduced by this corporation from 12 to 9 cents per kilowatt hour. The reason for this was that in 1915 the city of Seattle started business with a small publicly owned plant and offered to sell electricity in competition with the $50,000,000 cor- poration at 815 cents per kilowatt hour. Early in 1911 the Stone-Webster company reduced to 814 cents itself. In July the same year the publicly owned plant reduced to 7 cents and in November the same year the company met the lower figure. The city was now setting the private company a hot pace with the publicly owned plant and it again went the company one better on July 1, 1912, by reducing rates to 6 cents. The company was now bheginning to sweat blood, so to speak. It was annoying, “Socialistic and un-American”, but the company met the reduction a month later: It had to, or resign all the city business to the publicly owned plant. - PUBLIC PLANT PROFITS ON VERY LOW RATES ’ Seattle was now. getting- a pretty fair electric rate. Six cents was not so rotten. But the publicly owned plant was making money and putting its profits into big extensions. It felt pretty cocky. So it hit the comany another biff on April 1, 1915, by reduc- ing rates to a 5%-cents maximum— the first 45 kilowatt hours at that rate and all over that at 2 cents per kilo- watt hour. The city also reduced the minimum monthly bill for residence Savingthe Peoples Heritage liver §NorrigV y plant the people started in 1905, but which has grown till it now serves 43,000 zed all the business. This timber dam has been replaced with a modern concrete ones Water power is one of the resources which is the heritage of the people—their heritage to use for their support and comfort. A few cities in the west are showing the people of ‘the land how these natural resources can be used to the benefit of their rightful owners . —by public.ownership. Why not try the same plan with some of the other natural wealth? consumption- to” 50 cents. The Stone- ‘Webster corporation, with all its mil- lions of .resources, was now panting for breath and pawing the air, but it met the publicly owned plant’s new figure, the lowest on the Pacific coast, except at Tacoma. S> this is how the people of Seattle got 5)%-cent electricity. ' It wasn’t through any benevolent at- titude ‘of the private corporations. It was through public ownership. The story of the establishment and growth of this publicly owned utility at Seattle, in the face of competition with one of the biggest and richest corporations in the United States, is unique and interesting. L Tacoma, Seattle's neighbor, also has made a grand success of public owner- ship and operation of the electric light and power business. It's rates are even lower than Seattle's. But. Tacoma has monopolized all the residence and business lighting business with its Interior Cedar Falls generatin power plant. ; FOUR : D plant, and a large share of the power business. On the other hand Seattle has never had a monopoly with its publicly owned utility. From the start it has had to compete with one of the largest, richest and most expertly- managed private corporations in the electric business in the United States —and it is still competing with this private company, though the munici- pal plant now dominates the field and is fast driving out its privately owned rival. EVERY YEAR SEES PLANT IN STRONGER POSITION Not the least important feature of- the Seattle city plant is its splendid financial success. -Every year since it started business has seen it in better financial condition. From the start it has paid all its operating expenses, all the interest on the bonds voted by the people to build it and retired all its bonds that have come due. It has g station of the Seattle municipal electric light and *