The Washington herald., 1914-07-22
File SUIT TO STOP
POWER PENALTY CASE
Washington Railway and Potomac
Electric Companies Take Issue
with Utilities Board.
LETTER BONE OF CONTENTION

Direct issue with the Public Utilities
| Commission Is taken by the Washington
Railway and Electric Company and the
Potomac Electric Power Company in g
bill in equity fled in the District Supreme
Court yesterday. The bill prays the court
to restrain the District Commissioner
and the Public Utilities Commission from
, prosecuting a suit recently filed against
the Potomac Electric Power Company to
collect $500 for alleged penalties said to
have been incurred by failure OF the
power company to obey q certain letter
of the Utilities Commission of March "A.
1914
This letter Is the bone Of contention
both in the present bill in equity and in
the suit for $500.
By its terms this letter would require
the Potomac Electric Power Company to
entirely separate its property and busi-
ness from that of the Washington Rail-
way and Electric Company and desist
from the joint manufacture Of electricity
and. further, TO make certain monthly
statements after the separation was COM
pleted.
The penalty in question Of $500 rerIe-
sents the effort OF the commission to as
sess the power company 500 a day for
failing to obey the alleged order.
Attorneys for the railway and power
companies. In fact, make the point that
the letter is not even an order, as the
Utilities Commission contends, since It is
IN letter form only. and not one OF the
regularly numbered forms on which other
orders were issued in the regular conduct
of business.
out in reply to the suits for $780, which
it is sought specifically to restrain, coun-
sci for the two companies contend that
the Utilities Commission has no right 20
order them TO separate their affairs nor
to desist from the joint manufacture of
electricity. for the reason that the act
creating the commission provides for such
joint arrangement, and, further. that
Congress contemplated the present ar
ransement between the companies at the
time II passed the so-called consolidation
act" in 1900
In the bill in equity II is specified that
under the provisions Of this latter act
the companies entered into contractural
relations whereby the railway company
guaranteed the bonds CT the power COM
psny to the amount of t,OOp.O00 which
bonds are held by the public: and one
cf the considerations in the contract was
that the power company should build a
suitable power station from which the
railway company would be supplied with
such power as II needed. Another con-
tCntion in the bill Is that the joint manu-
facture Of electricity prevents waste and
and results In economics
which are beneficial not only to the COM
panies, but to the public. The railway
uses Its maximum of current
during the day time. while the supply
Df electricity for purposes of illumination |
IS largely at night.
1t Is claimed that the power plant and |
is an integral part of the rail- |
way system; Is in no way IN competition |
with the railway company, and the |
obvious fact is the railway company |
,annot exist without an electrical power |
ila.It, thus justifying entirely the joint |
Of electricity. And II is |
that Congress discerned these |
acts when II passed the act permitting |
he companies to make their mutual con-
ractural arrangement.
The attorneys of the two companies |
state that the legal status of contracts is
involved in the suit sought to be pressed |
oy the Utilities Commission, so that IT /
S necessary for them to apply to the
courts, not only to protect their own
lights, but to protect the holders Of their
who are widely scattered.
Exception also is taken to a statement
printed in a local paper at the time the
Iuit of the District was filed, that Con-
gress had heretofore passed an act sepa-
-ating the companies. although such a
i'll Is now pending, introduced by re-
Tuest Of the District Commissioners, but
lot yet reported by the House commit
zee.
The companies claim the Public UtiIi-
les Commission Is seeking to accom-
1Iish by mere letter the same thing
ought In the pending legislation.