The Washington times., 1916-12-16
PEPC0 PLANS PLANT
AT GREAT FALLS
That Is, as Soon as Coal Price
Scars to Prohibitive
Figure.
continued from rIrst Page.l

|
OF Expert Accountant Andrew Sang
ster and Consulting Engineer Charles
Pillsbury difered-both being com
mission experts.
| hTe difference. Mr.. Ham said. was
due to the fact that Mr.. Sangster had
not used an inventory and Mr.. Pills
bury had.
Company's Investnrnts.
The investments OF the company, as
SGT forth ON the balance sheet are:
Stock In the Electric Test.
ing Laboratory. .... $1,000
Rockville Electric Railway
Two. thIrds OF the capital
stock OF the Great Falls
Power Company ..... 10000
lGraceland Cemetery site. 1l0, 15J.SS
Washington Railway and
Electric sinking fund. 3II,02O.0p
Mr.. Ham said the Great Falls item
should be carried In the totals OF
costs and equipment and is placed
under the head of Investments. be.
cause the Potomac Electric Power
Company owns two.thirds interest I'm
the site. The property was acquired
by the Washington Railway and Elec-
tric Company for the Potomac Elec.
trio Power Company.
Plans For Use OF site.
The plans for the use of the site
Mr.. Ham explained:
"Pians have been prepared for the
DEVELOPMENT OF the water power at
this city by the Potomac Electric
Power Company. IL IL planned TO use
water power when this power can be
generated into electricity cheaper
than steam. In view OF the increas.
ing price OF coal IL is reasonable to
suppose that this time will come.
because we must be prepared for
such n contingency We believe we are
Justified in holding this site. We hold
n contract for twothirds OF the stock
of the Great Falls Power Company.
with the Washington Railway Electric
Company"
soon TO ne settled.
The fact was brought out in ques-
tons from Commissioner Kutz that
the Potomac company does not aetu.
ally hold the contract for tho two.
thirds stock as yet. but that the mat.
ter In now In the hands OF the legal
department OF the company, and viii
shortly be settled.
commirainner EutZ submitted Mr.
Ham to rigid questioning NJ to the
mennor In which the valuation Of
81 900, 900 had been placed upon this
property when the books showed. and
Mr.. Hams own testimony showed
that the Washington Railway and
Electric Company had paid but sl25..
600 for the interest II had purchased
November II. 100:
Explains in Detail.
Mr. Ham explained In detail:
The company looked forward to the
purchase OF water power site for
t4e reason that had been stated. 1t
the time the purchase was made,
consisting OF 1894 shares of the
stock Of the Great Falls Power Com.
pany. the Potomns Electric Power Com.
pany was not In a position to finance
the deal and the purchase had been
made by the Washington Railway and
Electric Company.
A computation OF the Interest at @
per cent compounded seminnnually
would give the sum OF S5tT $3.50 and
this. added to the original xt35,OOO
would give the sum OF SoI2.35I.5O. And
so thu property had been entered ON
the books OF the Potomas Electric
Power Company at sl,OOO,O00.
Investigation Made.
Have you made an investigation Of
the power possibilities OF the Great
Falls site?" inquired Commissioner
KutE.
yes" responded the witness
lis II worth twice a. much as was
paid for it9a" asked the Commissioner.
~ don't know what II Is worth. but
only what the account shows" AIR.
Ham replied, smiling. what we
wanted TO show was the value To us,
based on cost plus accrued Interest"
"Why do you carry the Gracelanl
Cemetery site under construction AMI
equipment cost?" Mr. Ham was asked.
I'VE carried that az an investment
In the construction and equipment ac
count" Mr.. Ham said, because IL was
acquired for future operations, II "
planned TO use this as site for shops,
car houses. and car yards for all the
OF the Washington Rail
In the city In large tracts like this Is
difficult 10 obtain, and brings increas
ingly high prices.
Must Look To Future.
"a company like ours must look to
the future development. and make
plans accordingly. We are also con
Tronted with the condemnation by
the Federal Government OF the site
or the present plant at Fourteenth
and II streets. I believe that viii
eventually happen, and II IL necessary
to prepare for that"
ReVerting TO the Great Falls site
again. Mr. Ham was asked II the
Potomac Company had received inter,
est on the money invested, lie said II
had. lie said IL had received no in.
terest on the GTacelsnd site, and that
he, personally, did not believe IL would
he proper Ia include such property at
the cost OF investment plus interest,
"In fact, we haven't added interest
al ali
said MIR. Ham,
The sale of the Great Falls power
site TO the Washington hallway and
compay was made November