Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-08-26
UTILITIES COMMISSION
CONSIDERING REDUCTION
Officials of Both Companies Contend
That Arrangement Between
Them Is Equitable.


sion's investigation of the relations be-
ington Railway and Electric Company.
concluded today.
That the commission will issue an
order changing the working agree
ment between the two companies re-
gardns payments for power by the
traction concern is considered prob
able.
Under the new relationship. should
it be ordered, the power company
would receive more for current than IT
is now being paid by the railway COM
pany. and the prospect of private con-
sumers benefiting from the increased
earnings through reduced rates would
be greatly increased.
Lower Rate Expected.
Early action along the line of estab
fishing new rates between the compa-
MES rather than in the direction of eff
fecting d enforcement of the corpora
lions is regarded at the District build
ing as practically assured.
Commissioner Brownlow this after
noon stated that the principal consider
alton underlying the investigation is
the question of whether the private
consumer is paying high rate for cur
rent because the power company sup
plies the railway company with power
at or about cost and. in addition. pays
the dividends of the traction company
out of it's earnings derived from pri-
waite consumers.
IF the commission decides that this
situation obtains it may be possible to
revise the rates charged to private con-
wh9t2Var he the c0rDOr2te
relations between the two companies
said the Commissioner.
Reduction Soon Possible.
While consideration of rate questions
in connection with all local public util-
tiles has been held in allegiance until
completion of the valuation work now
in progress. it is pointed out that the
commission may not have to wait for
the valuation figures to reduce rates
for electric current if the present rates
are clearly excessive. because of the
railway company buying power from
the Benning plant at less than cost.
The general question of rates and
the specific proposition of where con-
sumers may be paying too much for
current because of an inequitable ar
are separate problems that may or may
not, be dealt with separately by the
commission.
Commissioner Brownlow's statement
commission will endeavor to give i'm
mediate relief to private consumers
fr0Iny whatever inequities it may con-
slider are the result of the present re-
la tions between the Washington Rail-
way and Electric Company and the
Potomac Electric Power Company. Just
how soon the commission will be in a
position to issue orders concerning rates,
if it should decide that the present
charges are too high, is not known,
but it is believed that its decision in
the matter will be reached a an early
date
Investigation Finished.
The commission shortly before noon
today finished its investigation of the
relations between the two companies.
The inquiry was inaugurated yester-
day morning and only three witnesses
were heard throughout the entire pro-
cedure. They were Clarence p. King,
president. and w. F.. Ham, vice presi :
dent. of the Washington Railway and
Electric Company and l.. E. Sinclair,
of the electrical de-
partment of the Potomac Company.
Mr.. Hams testimony occupied the
greater part of today's session. The
railway official reiterated much of his
testimony of yesterday regarding the
financial arrangement between the rail-
way and power companies, which he
claims has been mutually beneficial.
In answer to a question by Commits
sioner Brownlow, the witness said he
thought the public utilities commission
has right to Investigate the rates
paid the power company by the rail-
way concern, but no authority to
change them.
Concerning, he ri hatx ba
corporations which require the trac-
ton concern to pay the power company
per cent interest on the value of the
plant used in the production of power,
and 10 per cent profit on the amount of
power furnished, Mr.. Ham said that
these interest clauses in the contract
had been abandoned in consideration of
certain financial services rendered by
the railway company.
Economies Dwelt Upon.
Mr.. Ham then elaborated upon pre-
vious testimony to the effect that the
railway company's services to the Ben
ming plant had enabled the latter insti-
tuition to reduce the cost of production,
the saving being estimated at a quarter
of million dollars per annum This
saving, the witness maintained, has re-
suited in lower rates to private con-
sumers. and the extending of services
which otherwise would not have been
possible.
Commissioner kutz asked Mr. Ham if
there is any reason now why the Poto-
mac company should not stand on its
own bottom. The reply was that il
the companies should be separated the
Benning concern would have to live vi
TO it's contract with the railway com
pany and would try to meet the situa
ton in business way. The witness
suggested that an independent com
pany probably would welcome such &
situation rather than have the railway
company build it's own power plant
Corporation Counsel Syme questioned
Mr.. Ham closely as to what benefits
the private consumer has derived from
the contract between the two corpora
tions. and the witness gave instances
in support of his contention that rates
have become cheaper.
President King was questioned brief
ly by Corporation Counsel Syme ant
Commissioners kutZ and Brownlow
He repeated in effect what Mr.. Han
had said regarding the big economic,
effected by the Benning plant as a re.
suit of its arrangement with the rail.
way company Questioned by the cor.
poration counsel as to what the trac'
ton concern should pay for power il
the companies should be divorced, MIR
King said that conditions would have
to be taken into consideration before
an intelligent answer could be made.
The railway company head insisted
that the present arrangement is al
equitable one, and thought that Il
should not be disturbed. The Wash
ington Railway and Electric Company
Mr.. King said. had done a laudabl,
thing in financing the affairs of thu
extend it's service for the benefit of tn,
people of Washington.