The Washington times., 1917-01-03

innumerable reasons why elactric
traction was not only not feasible. but
was a positive menace to a COM
munity.
simple Speculation.
When such factors are considered. and
they are considered in every new en-
terprise Of revolutionary character
In industry, the witness said. II h i'm
possible to give the securities OF such
an enterprise the character Of invest
ments- They are speculations, pure and
simple.
The witness said. on cross examinA-
ton, that the only cost OF securing
money to the company was included
In the discount-or rather was the
discount II company sold bonds at
% to banker, the banker must sell
those bonds for more than that. ~
The profit he made was the differ
ence in the price he paid and the |
price he got from the investor. 1t is
for that reason that the banker must |
be careful not to pay too much and |
not to charge too much.
Who Finally Pays.
The man who really paid the cost |
OF the advancement Of the money |
was. therefore, the man who finally |
bought the bonds or stock as an in
vestment from the banker.
When again questioned regarding /
the securing of a large amount OF
money for reproduction. the witness
said there would be no market for
such securities, and that IL would be |.
necessary for the first banker ap-
preached to associate with him other
They would buy the securi-
ties in which they believed. and hold
them until they could find a market
for them.
Nobody goes around with a mill
lion dollars in his pocket" said the
witness. The firm of Morgan is com
PEELED to call In others to float great
I'VE can't think of one million dol
airs or large amounts like that in
my way but in figures" said Cor
Counsel Syme.
Wouldn't Want Mortgage.
Mr.. Graham was asked how much
t would cost to secure $4,000. 900 on
third mortgage on the present plant
II the Potomac Electric Power Com
,any.
ut would be difficult" said the
witness. Il don't know of any one :
Who would want a third mortgage.
wouldn't put it before any investor
know"
Vice President w. F. Ham was re-
allied to testify regarding. certain !
cal estate and tax schedules he had !
ecured at the request of Commits
Toner Kutz. During the course OF
Is brief period on the stand Mr. Ham
aid he did not think the company
aid any taxes on its cables, although !
paid small amount in wire.
Commissioner Rutz asked Mr. Ham
rho owned the other one-third of the
took of the Great Falls Power Com :
any. The witness said he did not 4
new. s. r. Bowen, secretary of the
over company and of counsel for the
stated TO the commission / |
over Company was dependent upon
ertain decisions of the courts of yir-
inia. \
President of Both. G
He said Clarence P. Kink is presi- y
ent of the company. Mr.. King is also J
resident of the Washington Railway
nd Electric Company and the Poto-
lac Electric Power Company. .
Ralph w. Crowell, purchasing e
gent of the power company, was the i
lst witness called. Mr.. CrowelI was
allied to testify as to the actual cost y
materials at the present time, and
} present the costs in 1914 in COM
arison with the costs of 1916. =
1t is stated that Mr.. Crowell Is the n
Lst witness that will be presented
y the Potomac Company. The Pub
C Utilities Commission has no more z
illnesses to call, and II is expected a
lat the hearing today will wind up
he proceedings with regard to the /.
otomac Company's valuation.
Examination Concluded.
The examination OF Mr.. Crowell
as concluded and certain documents
nd tables were introduced in the rec
I'd by the power company and the
The hearing then ad-
,urned.
The presentation of the briefs and
raj argument OF counsel are all that
.mains to entirely clear up the case
the power company valuation, SO
Ir as the public hearings are con-
srned. The commission expects to
ave the case entirely disposed OF by
lie end OF this month.