Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-09-05
Washington Railway Co. and
Potomac Power Co. May
Fight Utilities Board.
WILL OBJECT TO CHANGE
IN THEIR RELATIONSHIP
Propositions Outlined Which Com
mission Expects Corporations to
Answer at Early Day.

That the Washington Railway and
Electric Company and Potomac Elec-
trio Power Company will resort to the
courts in an effort to prevent the pub
lie utilities commission from carrying
out its proposed orders materially al
fecting the relationship between these
corporations was the view generally
accepted in local government and
financial circles last night.
Recalling that officials Of the two
companies at the public hearing, Au-
gust % and %, challenged the COM
missions right to interfere with the
agreement under which they are ope-
rating and refused to testify until sub
poenaed, representatives Of the utili-
ties board are expecting that IT'S con
templated action will be the subject oil
a determined legal controversy:
commission has proceeded cautiously.
In lieu of adopting orders to correct
what it believes to be inequalities that
are not for the public good the COM
orders and announced that it will give
the corporations in question an oppor-
tunity to show cause why they should
not be adopted.
Puts Companies on Defensive.
This action, it is pointed out at the
District building. puts the companies
on the defensive. At the previous
hearings no specific charges or propo-
sitions were under consideration. and
the railway and power company repre-
sentatives were unwilling witnesses
as to the financial relations between
the two concerns.
But the situation will be altered when
the matter is next considered, which
may be before the end of the present
month. The companies must then re-
ply to certain definite propositions and
upon the basis of their reply the COM
mission will determine its final action.
The basis changes outlined by the
commission to which principal objec-
ton, it is anticipated, will be made are
that the railway company make more
adequate compensation for the power
which it acquires from the Benning
plant and that the latter concern, to
offset the increased earnings thus &C
CURED, reduce rates to private con-
sumerS.
AS viewed by one official of the gov
eminent, an unexpected development
might come out Of the situation II the
companies should decide not to resort
to the courts, but should offer to make
certain concessions which would cause
out of its present contemplated pro-
gram.
It is pointed out that II the companies
should agree to assist the commission
in every way to establish a fair valua-
ton upon their properties the utilities
board might favor consolidation of the
corporations and permit the question of
rates to be adjusted according to the
valuation established.
Suggestion by Mr.. Ham,
In the course of testifying before the
commission week before last w. F.
Ham, vice president and general man
ager of both companies, intimated that
amalgamation of the companies might
dispose of some of the conditions OBJ
jected to by the commission. But it is
said to be improbable that the utilities
board would lend an ear to the amalga-
nation project unless the companies
agreed to cooperate to the fullest ex-
tent in enabling the board to arrive at a
fair valuation of their properties as a
basis for rate schedules.
1t is suggested that two courses OF ac-
ton are open to the companies. One of
them contemplates a long and possibly
unsuccessful fight in the courts. or, in
the event of a favorable court decision.
the obtaining by the public utilities COM
mission of additional legislation from
Congress which will enable it to deal ef-
fectively with the situation.
The other course would be to cooper
ate with the commission.
Possible Benefits to Consumer.
To what extent the private consumer
Of electricity will benefit If the pres
emit plan of the commission Is carried
out is problematicaI. An estimate by
an official of the commission places
the saving on the average light bill at
from 10 to 20 per cent, II consumers
share in the increased earnings OF the
Potomac company that are expected to
result from the carrying out of the
commissions proposed orders. WASH
ington consumers Of electricity now
pay at the rate of 10 cents per kilowatt
hour. There are approximately $4,000
users of this commodity in Washing
ton, and conservative estimates are
that at least quarter of million dol
lars win be saved on the total Of their
annual bills if the commission puts
through the orders that it has in mind.