The Washington times., 1916-07-15
SOLD SAME DAY.

company sold out It's plant, franchises,
ETC.. to the Potomac Electric Power
Company. On the books Of the new
concern the valuation of the property
was set down at s4.33s.575.l7.
The difference OF s1.977.l50.63 does
not appear to be accounted for" said
Expert Sangster In going over the list
Of figures.
The announcement by the expert Of
this difference led Immediately to a
lively set Of questions. Up to that
ms nsr sso Ssa Sse sh 5ew so siu d
tual values. The discussions that had
arisen dealt mostly with bookkeeping
This was the first time since the
hearing on the valuation commenced
that there was any big divergence
In figures and both the Public Utili-
Pany officials wanted to have the
ter declared ne could find no expia-
Vice fST Ham sf Of TIE the sooss
ney. John s. Barbour. questioned the
expert very closely as to how s,;, he
He was asked whether he had
taken into consideration the indeb:-
OF the United States Electric Power
were purchased by the Potomac com,
peny.
All Accounted For.
Mr.. Sangster stated that all that
had been accounted for in another
section. He said that the difference
Of elmcst two million dollars In the
book values was actually a differ
ence as shown. He was asked II It
were not possible that he had elm
mated some Of the property values
OF the United states company which
had been used and which did not
show in the actual value at the time,
Mr.. Sangster repeated that he had
simply taken the book valuation as
Il was shown on the books of the
valuation as 1t was shown on the
books CT the Potomac company on the
day OF the transfer OF property. -,
had not been aN' informed " Or did not ns
know that the United States com
pany's valuation of its plant was
SO Been Informed. TO the the BEST OF his
q n he 0 Gifted States s the
pany's books was correct
Chairman Kutz. Commissioner New
man. and Corporation Counsel Syme
took hand In the examination of the
witness on this particular item with
Of the discrepancy in the record Mr..
6angster went over the figures several
times and each time his statement was
Attorney Barbour read a abatement of
the company which showed that the
United States Electric Lighting Com
pany had outstanding bonds. notes. ETC..
that IT. more than took up tht
showed. as had that of Expert Sangster,
that the Potomac Electric Power Com
Pany paid for is purchase pnrtly In the
several items In the statement which
were not found in the experts report.
Had Not Found Items.
On being questioned regarding these
stems. Mr.. Sangster said he had not
found them. and did not know about
them. 1t was brought out that the
expert had used the company's books
a. the basis of his calculations OF
values.
The discrepancies that have so far
been found In the figures ana questioned
by the company's attorneys or the
~ with the matter OF classification of
Items rather than In the actual differ
once In values.
Mr.. Sangster explained that he fire.
Quently found II necessary to eliminate
items from one account and charge
them to another. The matter of NOV
ing a switchboard, for instance, he had
found under the heading OF plant value
This he had changed to maintenance
charges.
Attorney Barbour and Vice President
Ham continually questioned Mr., Sang
ster's methods of making these changes
the company's officials attempting t
show that the expert had reached hii
conclusions by arbitrary methods. Eacf
item in the volumes of figures In the
commissions vaiuation report had beer
gone over In this way.
It is expected that the cross exiUnina
tion of Chief Engineer Pillsbury and
Chief Accountant Sangster will be made
the occasion for setting forth the prin
cipal contentious of the power compan!
"a to the differences In the valuation
figures of the commission and the com
pany experts.