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Page Si4pAn

THE 'JEWISH NEWS-

Friday, SepfemEof 0, 1944

To Customers
of the
Detroit Edison Company

- It is important for you to know why we are appealing
from the Michigan Public Service Commission's recent
order that Detroit Edison refund $10,4 5 0,000
to its customers*

Attempts are being made to impose added taxes and other burdens on
the Company and to divert Detroit Edison war taxes from the
U. S. Government

1. BY MEANS OF AN "EXCISE TAX". The City of Detroit
passed an "Excise Tax" ordinance, designed—as the City's repre-
sentatives stated—to divert Detroit Edison war taxes from the U. S.--
Government to the City Treasury. The "Excise Tax" requires The
Detroit Edison Company to turn over to the City of Detroit up to
one-fifth of all gross income received from Detroit customers.

2. BY MEANS OF A RATE CUT OR REFUND. When in 1942
the City of Detroit asked the Michigan Public Service Commission
to order a cut in rates, the plea was denied and our rates were held
to be reasonable. After appeal and rehearing, the Commission has
, now decided that a refund should be made to customers, from
money that would otherwise be paid to the Federal Government
in war taxes. So then . . . despite Detroit Edison's acknowledged
fair rates . . . the Commission ordered a refund to customers,
ignoring the excise tax described above. This was done despite the
fact that since the start of World War II, we have made reductions
in rates to residence and commercial customers. The general cost
of living has increased by 29 per cent; food by 38 per cent. Wages
and the price of coal have increased, all bringing about a heavy
increase in our own costs. But while prices have risen our rates
generally have not.

These actions would take about two million dollars a year more than we would
otherwise pay the Federal Government in war taxes.

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The same ten million dollars is being claimed in three places at once!

Obviously, we cannot pay it to the Federal Government in war taxes—and
to the City of Detroit in excise taxes—and to our customers in the form of
a refund.
Only the courts can decide. Our customers should know that we will pay
these war taxes or the refund when we know to whom the law requires
us to pay them.

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The "Excess Profits Tax," designed by Congress to help pay for the war and
to prevent excessive war profits, is an 85 1/2 per cent top-bracket tax which now
leaves this Company with a smaller net income than it had in 1939. The Company
is not making excessive profits. And our dividends have been reduced. The recent
refund order would leave the Company with a return of only four and two-thirds
cents on each dollar in the electric business, as fixed by the Commission.
This is too low.

If the 1943 excise taxes are valid, the return would be about four cents on
the dollar. A return on its investment as low as either of these would most
certainly damage the Company's ability to continue its present good service.

Rate cuts have many times been made by The Detroit Edison Company volun-
tarily. Today Detroit Edison's rates are among the lowest in the world. Since
1918 there have been some 40 reductions in our charges for various classes of
service. Today your residence electricity costs you only half as much per kilo-

watthour as it did in the last war.

We intend to keep up this good record in the future.

PRENTISS M. BROWN,

Chairman of the Board

THE DETROIT EDISON COMPANY

The Detroit Edison Company, with 800,000 customers, serves more than half the people in Michigan

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