Evening star., 1915-04-17
TAX|CAB COMPANY
TO TEST VALUATION
Gives Notice That It Will Ask
Courts to Set Aside
Appraisal.
A REDUCTION IN RATES
is TO BE ORDERED SOON
Utilities Commission Prepares to De.
fend Legality and Fairness
Of Its Procedure.

Institution Of legal proceedings BY
the Terminal Taxicab Company tc
have set aside the valuation of Its
property made by the public utilities
commission will not halt the plans OF
the commission to promulgate new
taxicab rates.
Unless temporary restraining order
compelling 1t to refrain from rate
making is issued the commission, II
was announced today, will order a new
schedule of taxi charges based upon
the valuation which it recently has
completed.
To Defend Valuation.
In the meantime the utilities board
is preparing to go to the mat with
the taxi concern with respect to the
conested valuation. Conrad H. Syme.
corporation counsel. will return Mon
and begin immediate preparations to
represent the board in what prom
ises to be the most important litiga-
tion it has yet figured in.
Notice by the Terminal company Of
it's intention to commence equity pro-
ceedings in the District Supreme Court
to vacate the valuation order as filed
with the commission yesterday did not
come as surprise to the members of
the commission.
1t is no secret that this body expects
similar controversies to be developed
in connection with the establishment of
valuations for other utilities and that
a number of suits to have valuations
set aside will be instituted during the
next few months is regarded as proba-
BILE.
This prospective litigation is expect
ed to play a big part in determining
whether or not government regulation
of public utilities is practicable and Is
looked forward to by the advocates Of
government ownership of public service
argument in support of their position.
Valued at $225, ,o13.22.
The utilities commission recently
placed the worth Of the Terminal Taxi
cab Company's holdings at $225.01s.22.
A valuation of approximately $500,00
had been asked for.
While the companys estimate is as
large again as that established by the
commission, it does not follow that the
commission, in promulgating new rates.
Will reduce the existing charges by half
in order to make them conform with
the reduced valuation. it Is stated.
No intimation has been given as to
what the new rates will be, although 1t
has been authoritatively stated that
reductions will be made.
1t is said to be the intention Of the
commission to establish at an early
date a valuation for the Federal Taxi
cab Company and then consider the es-
tablishment of rates that will be ap-
plicable to both companies.
Contention of Company.
In contesting the legality and fair
ness of the valuation Of its property,
the Terminal company. in a statement
fled yesterday with the commission by
its attorney, G. Thomas Dunlop,
charges. with other things. that the
commission had no Jurisdiction: that
the valuation was not made in accord
ance with the provisions of the public
utilities act; that the valuation was not
based on competent testimony: that
elements of value alleged by the COM
pany to exist were not considered and
that the valuation was not the act OF
lawfully constituted tribunal, COM
mission or other governmental body or
authority.
One of the charges against the suf-
ficiency of the valuation is that 1t
failed to include values for going
concern" good WILL" organization ex-
penses. sufficient working capital, the
value Of a large number of new auto
ed. which the commission has charged
off as depreciation.
The Supreme Court OF the United
States now has before 1t the question
of the commissions Jurisdiction over
the Terminal Taxicab Company. 1t Is
expected that the valuation controver-
sy also will be carried to that tribunal.