Evening star. [volume] (Washington, D.C.) 1854-1972, 1916-07-13
HEARINGS BEGUN
/ TOFKV VALUATION
Public Utilities Commission
Taking Evidence in Potomac
I Electric Power Case.

Overriding the application of the
washington Railway and Electric Com
pany that 1t be admitted as party re-
spondent to the proceedings. the public
utilities commission. after numerous
delays over procedure details. this
morning began the actual taking of
Its valuation on the property Of the
Potomac Electric Power Company.
The commissions direct examination
of witnesses promises to be brief.
Charles S. Pillsbury. the engineer Of
the valuation bureau who actively d.
rected the entertainments of value for
the company's physical properties. was
on the stand during the morning. He
admitted that some items had not been
included in the report because they
the conduct of the power company's
business.
Explains Bureaus Work.
Mr.. Pillsbury's testimony was general
in character. He explained the organ
fzation Of the bureau for valuation work.
the method employed in determining
the cost Of reproduction of the COM
pany's property and the cost Of repro
duction less accrued depreciation.
At the conclusion of his testimony
Conrad H syme. general counsel for the
commission. offered the bureaus report
as evidence, to which objection irnme-
attorney for the company, on the
ground that it had not been sufficiently
established by proof The objection
was overruled by Chairman Kutz Of the
cepted TO the ruling of the chairman.
Several objections were noted during
1fhe examination by the company's at
ttorney and without exception over
objected to Mr.. Pillsbury's testifytng in
regard to land values inasmuch as the
witness had said these values were
made by the assessor of the District
Chairman Kutz decided that the testi-
mony was admissible inasmuch as 1t
established the relation of Mr.. Pills
i bury to that phase Of the valuation
work.
Why Company7Was Ruled Out.
Tho commissions action in denying
the-appNcation of the Washington Rail-
sEay and Electric Company was In &C.
'bordancs with the recommendation OF
Its attorney. Mr.. Syme. who. at
tho beginning OF the hearing this
enorning. delivered an extensive ar
xument In support of his posi-
tfon. he claimed that the utilities
law required the utility corporations OF
the District to be valued separately
and that tho Washington Railway and
Electric and Potomac Electric Power
companies are separate corporations
In denying the application. Chairman
Kutz said that opportunity will be at.
forded the railway company during the
hearing TO offer evidence relative to
the power company Values II 1t SO de-
sires- Exception to the ruling wal
noted by the company.
Andrew Sangster OF tho accounting
division of the valuation bureau wal
placed on the stand this afternoon tc
resume,the. giving of direct testimony.
Cites Act Of Congress.
In sustaining his opinion given to tht
commission that the property OF ths
Potomac Electric Power Compan,
should be separately valued. and thai
the washington Railway and Electric
Company should not be made a forma.
party respondent in the proceedings
AFR. Syme took the position that undel
the act of Congress Incorporating thu
Washington Railway and Electric Com
pany. IL was expressly provided tina
this company should not acquire either
the franchise or the property OF the Pc
fomac Electric Power Company.
; He says the railway company coult
not n any event have exercised tn
xyancti Uses and assumed the duties o