Evening star., 1916-12-21
MUNICIPAL PLANTS
DECLARED COSTLY
c. G. Young Says at Electric
Company Hearing They Are
Expensive to Operate.
PRIVATELY-RUN CHEAPER

Municipal electric light plants cost moro
than those privately operated and money
spent in educating the public on this
point is money well invested. This
statement was made by c. G. Young. con-
sulting engineer of New York, in the
course of cross-examination before the
public utilities commission today in the
Potomac Electric Power Company valua-
ton hearing.
Questioned by Corporation Counsel
Syme as to the propriety of the allow
ance by Harold Almert. Chicago ex-
pert, who valued the company's prop
erty. Of $262.542 for legal. organization
and franchise expense. Mr.. Young said
that an expense of this character must
be incurred in the organization of such
a company. While testifying that he
had not subdivided the amount into It's
various elements, the witness said
that there must be an expenditure for
educating the public as to the need or
such plant, and especially or snow
ing that a municipality owned and op-
Grated plant would be economically un-
wise.
He also expressed the opinion that,
in reproducing the Potomac Company's 5
property. the cost for legal, organtza-
greater today than at any time in the
past. In substantiation of the testi-
mony of Mr.. Almert, the witness said
that at least a few thousand dollars
would be required for entertainment
purposes in promoting such company
and that in New York more business
is transacted at dinners than during
regular office hours.
Under A1mert Estimate.
Mr.. Young estimated that $4,000 year
for a period of five years should be al
lowed for legal. Organization and fran
chise expenses. The amount falls ap-
proximately $4,000 under the Almert
estimate. and the difference, he testified,
would be reasonable allowance for ex-
penses.
Mr.. Syme sought to find out from the
witness If he did not think the $4,000
estimate included too liberal an allow
ance for lawyers fees. the reply being
that attorneys are not paid only for
the time they consume in drafting
charters and doing other legal organ
1zation work. This answer by Mr..
Young caused Mr.. Syme to remark that
if lawyers were paid no more for their
time than he is being paid for his they
would starve in month
There is John Barbour over there"
said Mr.. Syme, pointing to the general
counsel of the Potomac Electric Power
Company. who is getting 500 for
every 81 I make in this valuation"
And that causes me to observe"
said Commissioner Newman that the
corporation counsel is getting about
$3.50 for every 81 the Commissioners
make
There was general agreement that
none OF those engaged in conducting
the hearing are being properly COM
pensated for their services.
Considers Price Reasonable.
Today's hearing began with the pro-
pounding Of a long Hypothetical ques-
tion u Attorney Barbour in regard to
the ess of the price paid by the
Potion Electric Power Company to
the United States Electric Lighting
Company for the property at 14th and
B streets, this sale having been made
in 1902 for the consideration of s4,33S.-
576.17. Mr.. Young said that he con-
sidered it a fair and reasonable price
Asked by Commissioner Kutz as to
what portion of the price he would al
low for franchise value, the witness
said that he had not separated the
amount. but that, in view of his knowI-
edge of the city, the amount of busi-
ness being transacted by the company
at the time the sale was made and the
opportunities for business expansion,
he thought the Potomac company had
not paid too large price for the prop
erty.
There was a good opportunity for ex-
pansion, and it was an advisable pur-
chase at that price" he continued
In answer to d question by S. r,
Bowen, secretary of the company and
one of it's attorneys, the witness said
that taking into consideration all con-
ditions obtaining at tina. time, the pur-
chase of the property by the Potomac
company in 1902 was in the public in
terest.
His View of Fair Value.
! AT the outset of the cross-examination
Mr. Syme endeavored to obtain from Mr..