Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-07-23
Potomac Electric Power Com
pany Notified of Proposed
Public Hearing.
DIFFERENCES ALLEGED IN
PRICES FOR CURRENT SOLD
Claim Private Consumers Pay Divi.
dends of Washington Railway
and Electric Company.

AHotner step IN the pupl1c Ot1NC1eS
commissions endeavor to separate the
Washington Railway and Electric Com
pany from the Potomac Electric Power
Company was taken today when the
commission served on the electric COM
pany notice that a hearing soon will
be held to determine publicly the cost
of electricity furnished the Washington
Railway and Electric Company and
subsidiary lines as compared with the
cost of electricity furnished to house.
holders and private consumers. For
several months there has been a lull in
the fight on this line from the District
building. the latest battle having oc-
CURED in the hearing room of the
House District committee, when the
bill to separate the companies was be-
ing analyZed in public hearing. At
that time Corporation Counsel Syme
made the statement that in ten years
the Washington Railway and Electric
Company had paid dividends $2,000,000
in excess Of the earning power of the
road.
Outline Of the Investigation.
The notice from the public utilities
commission to the Washington Railway
and Electric Company gives an out
line Of the line of investigation to be
pursued, and states that the commits
sion has already examined:
/. The proper measurement Of the
power used by the Potomac Electric
Power Company and by the WASH
ington Railway and Electric Com
pany and by the other utilities
companies.
2. The proper basis for lthe de-
termination of the proportion of all
charges for the production and dis
paid by the Washington Railway
and Electric Company and by the
Potomac Electric Power Company
wherever joint ownership is claimed.
3. The basing of sales of electric
power on the same unit of measure
4. Whether there Is unjust or un-
r. reasonable discrimination in favor
OF or against any consumer.
After making such Investigation"
the notice of the commission says, "the
commission has become satisfied that
suf1cient grounds exist to warrant a
formal hearing"
Charges for Electricity.
District building officials, in discuss
ing the notification, said today that It
was evidence of the determination of
the public utilities commission to COM
pei the production, distribution and
sale OF electricity by the Potomac Elec-
trio Power Company. to be so measured
that 1t will be possible to ascertain
exactly at what price the Washington
Railway and Electric Company is re-
ceiting power. and at what price the sub
sidiary lines are receiving it,
1t has been charged before Congress
that the main revenue Of the Washing
ton Railway and Electric Company ia
derived from its ownership of Potomac
Electric Power stock. District build
ing officials who are anxious to push
the bill for separating the two con-
Germs have declared over and over
again that without the dividends from
the power company stock the Washing
ton Railway and Electric Company
could not pay from it's own operations
dividends on either preferred or com
mon stock.
When the bill for the separation of
the Potomac Electric Power Company
ana the Washington Railway and
the House the public utilities commits
sion took the view position that the
private consumers of electric power in
the District of Columbia are really
paying the dividends of the Washing
ton Railway and Electric Company.
Preliminary to Valuation.
The investigation about to be ordered
Is evidently preliminary to the valu-
alton of these two companies, which
will be completed in the early fall. 1t
was said today in the commission Of
hces, 1t is hinted there that the valu-
alton and the results of the proposed
present Investigation may have an in
innate connection.
The commission several months ago
ordered the Potomac Electric Power
Company to report its production and
distribution of electric energy, but. 1t
il claimed at the District building. the
reports made were SO involved as to
be valueless as basis for action.
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