The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1916-12-18
SAYSPEPCO NO
INFANTY INDUSTRY
Admits II Has Ceased to Need
Nurture Of Development
Charges.
!. PURCHASES ARE ANAlYZED
Vice President Holds Chief Ac-
countsnt and Or. Bemis
ARE in Error.
PURCHASES ARE ANALYzED

.s Expert opinion as to when an In
rhnt Industry ceases to be an infant
and thercby ceases to need the spe
y tiel care and nurture OF development
cbargca a. additions to its capital az
counts, was sought by Corporation
rcunaci Conrad Syme today from vice
/. President " y. Ham. OF the Potomac
frrpctrlc Power Company. during tho
opofse OF the valuation hearing be
fore the Public Utilities Commission
The exact time when an institution
Ike tho Potomac Electric Power COM
nfny fcachos the age when ftnancia'
disoretion Will not permit the addl
tion 81 moro development charges
wss definsd BY Mr.. Ham as the time r.
when mlch concern brings all its
rrtivit'rs into central power sta
tor. Also M. Ham stated that nc
fnprsht tho Potomac Electric Power
tofnpapy had ceased to be an infant
and WA nov a mstured and thor
ouEhly organized industry.
Various Purchases Asaiysed.
Tho uucst'ons as to infancy and ma
tufiiy IN INDUSTRIES arose over the
rflalysiB that MIR. Ham wins called upon
by fha attorneys for the power COM
r4ny 60 make VI the various purcha ses
~ sicctrie light and power companies
pr1lerilss In The District during the
,tAH tbirr-hve years. The proper
cH<rkrc 10 set against these properties
fgr ftRnchise aud other iniangiblcs and
,he weston ~ whether or not deprecin-
ton should b. charged against develop.
lncnf ~ the properties or wiped OF tho
nook by bclng absorbed from earnings.
were nc PRINCIPAL items involved in the
The facts were brought out that the
sum OF sin.sse paid IN cash and stocks
and bonds Of the United States Electric
stand IN the hooks Of the l.etomac Conn
psny by thycrbrany's acccuntants rs
= part OF IA spitsi upon which valua-
tion must BANtssed.
Paid For KrcisIer Compsny.
Tie sum OF $4,000 paid Tor the Krels-
Ter company, the first OF all the Dis
trlSs's electric lighting concerns also
was permitted to stand. Il was devcl-
oped W examination Of Mr.. Ham. al
though there was nothing hut an In
Ncntory OF tho actual property Of the
company LrcHcntcd, without analysis as
20 what the larger sum was paid for.
In connection with the purchase OF
tn" lexington plant. tho samo sltus.
lion was developed, n lump sum being
stated that could not, according 20
Mr, Ham, NJ anslyYod. lr the pur.
states ls.s r'YTf r5S,,S Ss ne Gon gS,sa
the sum OF 40 600 was given as
representing deyciopmcnt charge
for rranchtscs. u was rcRrhed Mr..
encc between the bo0k vsine ~ ,he
rompnny's prpperty Add thr = &c
actually paid BY IN. lpctbrnac e. N.
psny for IL, the hg9H nfmad b.ing
the excess Of he ptloA paid oser the
book value.
Calls trssuntsP a.. Esgos.
Tho property 81 lie KrelsIcf Com.
pany was scqun u by toe United
states Electric Light,nr Company
from StilSon liutohIns Ind othera Cor
the sum or SiOO.Oo0. Ia iAS2 Mr. Ham
held that cs.ef Accountgn Andrew
Sangstcr wn1 In error "a classify ing
THE as property, franchises. aud
tights, and that Dr. Bomlr was in
error In calling II franchises, The
money was paid for "a fully developed
business that was established In the
building at Tenth and u streets, and
was actually serving customers,
- hold. therefore," said Mr.. Ham.
that this could not property be con-
sldered as rights ana franchises"
Sym",
nsss
is there any Of The property ac-
duirod from the Eresiler company IN
existence now tie corporation coun-
sci pursued.
q don't know repeated Mr.. Ham.
Was II ever used ~ any 'ime:"
Yes" responded the witness: lit
so appears on the books OF tell COM
chief Accountant Sangster had
failed 10 make any note Of physical
SEiope ecnor sea4'rsS IN .his ppnrcesse IN
commission,
Commissioner Kuiz called attention
Ia the fact that the inventory Of The
i ,wn nnIo showed ~ Possessed si,h nats.
mos, which. he said would Indicate
thai 10" -c"mpany's capacity was not
MI Ham said there were 20 rec
ords that could he obtained that
would show any other property,
Thinks Inclusion Proper.
81 would Hike to know when an IN
dustry passes from infancy To sdr.
lescen0e and from adolescence L.
what you miEht call maturity" said
the CORPORATION Counsel at this jun,
turc.
II am unable Ia trace the develop
mont of this company through all IA"
various stages that Mr.. SWINE wouid
like 10 ahvc analyzed." said Mr. Ham,
smiling. But do think It proper
ana reasonable TO include such
CherGes in the capirel account as We
hGVc done here"
We've had so much trouble with
infant industries in the past tina. I
Just wanted 10 know when they cca.s"d
To- be iniants.' commented Air. Sy,n".
"bo you thirk these development
charges :hould be- continued as pprt