Evening star. [volume] (Washington, D.C.) 1854-1972, 1916-07-25
BIG FIGHT PENDING
OVER VALUATIONS
!. Capital Traction Company Re-
fuses to Accept Utilities
Commission Estimates.

Another big fight faces the pub
lie utilities commission in its val
uation work, the Capital Traction
Company today serving notice
that it will not accept the commits
sion's tentative estimate of the
worth of its property.
Surprised by the commission s
low rating-a surprise that pene-
trated local financial circles as
well-off7cials of the company
made it plain that unless the COM
mission alters its ratings they will
carry the case to the courts.
I'VE have read but not examined care
fully the valuation report of the utilities
commission of the District of Columbia -
said George E. Hamilton. president OF
the company today.
THE figures given as representing the
estimates of cost of the reproduction of
the physical property, and the original
cost Of the company's property. by the
commissions valuation bureau, admitted
ly falls short of showing the full value of
the company's properties. The figures
contained in this report are SO much
lower than the actual values as known to
US. and, as ascertained by recent very
careful examination made by experts of
the highest standing, that we are abso-
lutely at q loss to express an opinion as
to the results Of the work by the COM
mission.
Beyond this we are unwilling to make
any statement until permitted before the
commission and the courts to supplant
theory with fact.
Great Surprise Caused.
No valuation thus far announced by
the commission has caused more surprise
generally than that given out for the
Capital Traction Company. The rating
amounts to only about so per cent of the
company's capitalization.
The valuation given the Potomac Elec-
tric Power Company. which is being Wig
orousfy contested by the company. shows
a more fayoraoIe proportion to capitaliza-
ton.
ton with the power company; another
promised by the Capital Traction Com
Dany ana Bull oliIeiS hhCiS " ucSSioP do
It's yaiua ton work progresses. the public
utilities commission faces a long task
in establishing its valuations for rate
making and other purposes Years may
Ella pse before the litigation finally is set
tied.
w. R. and E. Valuations.
After announcing its rating for the
capital Traction Company yesterday
morning. the utilities commission last
night gave out its tentative ascertain
ments of value for the Washington Rail-
NAV and Electric Company.
The amount shown by the company's s
hooks as expended in the construction and
q ocm,isition of road. equipment and real
astota now in existence is placed at S..
s7n s51.36. Reproduction cost Is given at
and reproduction cost less
depreciation at $7,s53.s22.4.
These. figures do not include the
property of the Potomac Electric
Tennallytown' Railway Company and
the city and Suburban Railway of
Washington, all subsidiary companies
which are being valued separately.
Inasmuch as the ratings for all the
.ubstdiary companies have not been an
nounced, 1t is not possible at this time
ia determine how the total valuation
win compare with the company's total
capitalization.
ofnciais Of the Washington Railway
and Electric Company today declined to
discuss the ratings given out yesterday,
but, tntimated that they might have
something to say when the total vaIua-
Non 10 known. --------.