Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-07-23
Notifies Utilities Commission
Appeal viii Be Madato
the Courts. 4.
DISCRIMINATION MADE,
ELECTRIC OFFICIALS SAY
Cite Instances Said to Be Similar 10
Their Intentions Where Per.
mission Was Granted.

The Potomac Electric Power Com
pany served notice on the public uttii-
ties commission today that unless the
commission authorised the issuance OF
s49b.o00 worth of bonds applied for
several months ago. and partly pro
hibited by the commission. the com
pany would make an appeal to the
courts. The commission, April s.
made an order allowing the Potomac
Electric Power Company to Issue
s7s,6o0 general improvement 8 per cent
debenture bonds and disapproved ths
issue of the balance of the proposed
s4eb.oo0 issue on the ground that only
$4,000 is necessary for certain ex-
tensions. additions. betterments. i'm
provements and for reimbursement Of
funds expended for these purposes"
The commission said at that time also
that the expenditure Of all. the money
asked for by the sale Of bonds was no.
reasonably chargeable In whole or in
part to operating expenses or income.
AS third reason the commission then
stated that certain information which
the commission will take into con-
for the certificate Of authority for the
issue and sale of the remaining bonds,
nmely. s416.o0o. will not be in the
hands OF the commission before the
vestigation of the said Potomac Eiec-
trio Power Company now in progress"
The electric company in its notice to-
day said plainly that the commission
was wrong; that the money was to be
spent for legitimate purposes, and that
the company is going to appeal to
court unless the former order 10
changed.
Electric Company's Position.
The only reasons assigned for your
failure to approve or authorize the
issuance and sale of bonds" says the
protest. ARE because certain infor-
nation which the commission would
take into consideration in acting on
said application would be in the hands
Of the commission when the valuation
and investigation of this company,
then In progress. was completed. and
which, you also stated, would be COM
pleted within a few months from said
date, and that the expenditures were
not made necessary by express order OF
Congress or your commission.
1T is respectfully urged that neither
Of these reasons is sufficient or valid
in law
The Potomac Electric Power Company
specifies several reasons as grounds Of
objection. Among them are:
81. That 1t cannot be questioned that
all the money is necessary for capital
account, extensions. additions, better
ments and improvements.
"2. Because notwithstanding the lapse
of more than the few months men
toned by the commission, the valuation
of the properties Of this company has
not been completed and there IL no as
surance that it may be expected
80. Your refusal to approve the issue
OF bonds aforesaid disregards prece-
dents heretofore established by you in
approving the issue of bonds of this
and other utilities operating within the
District of Columbia and discriminates
against this company" -
Alleges Discrimination.
Severe, orders are listed as examples
of the alleged Discrimination. One of
them IL the order of February IS. 1914.
whereby tho Capital Traction Company
was allowed to issue s250,ooo of bonds
to reimburse its treasury for past capt.
tai expenditures. Another was, an au-
thorization for a six-hundred- thousand
dollar issue Of Washington Gas Light
Company bonds to repay floating IN
debtednesses.
The letter also claims that the val
uation of the company has no relation
to the question of Legitimacy or the
necessity for the capital expenditures
represented by tho items for which
authority was asked for the issue and