Evening star. [volume] (Washington, D.C.) 1854-1972, 1917-01-29
Others to Discuss Facts.

Mr.. Douglas statement is expected to
consume the remainder of the day. He
will be followed by Attorneys John S.
Barbour and S. r. Bowen. who will go
into questions Of fact as set forth in
the evidence in the case. comprising
5000 typewriter pages. Conrad H
Syme, general counsel for the commits
sion. will appear for that body. The
oral arguments probably will consume
three days.
At the beginning of proceedings this
morning the company filed a printed
brief consisting Of 500 pages. 1t is on
the basis of the facts set forth in the
brief, as CLEANED from the testimony
that the commission has been taking
since last June. that the company ex-
poets a decision that will increase the
tentative amounts reported by the com
missions valuation experts. Andrew
Sangster, accountant, and Charles l.
Pillsbury, engineer.
Mr.. Douglas outlined briefly the devel-
opment of the electric lighting business
in the District and events leading up to
the formation of the Potomac Electric
Power Company in 1886. as well as sub
sequent events retulting in the acquisi-
ton by this company of the United
Statee Electric Light Company in 1902
Relationship With Railway.
He went into the relationship between
the power company and the Washington
Railway and Electric Company. and de-
clared that it would be impossible to
value justly the property Of the former
without taking into account the effect it
would have on the railway company and
vice versa. In this connection he sug-
gested that, whatever error may have
been made in not making the traction
concern a respondent to the proceedings,
final determination of the value of the
power company's property should be
withheld until testimony has been taken
as to the value of the railway company s
holdings.
From this point Mr. Douglas launched
Of public utilities corporations. and de-
clared that there are now two groups
Of thinkers on this subject, one which
favors consolidation of such utilities
under government regulation and an
other which favors municipal owner
ship and operation.
Hints at Municipal Ownership.
He reminded the commission that its
handling of the problems before it
probably would determine whether
there is to be municipal ownership in
the District. 1t is pity. he said. that
utility commissions were not created
100 years ago, inasmuch as they are
required to establish valuations and
regulate rates and other features con-
nected with the business of utility
corporations which were organized long
ago under conditions vastly different
from those obtaining at present.
Taking up the question of the time
when the valuation should be made.
Mr.. Douglas pointed out that the COM
missions tentative findings are of July
l, 1914, whereas the valuation claimed
by the company is of July l. 1916. 1t
is an accepted Interpretation of the
law, he declared, that the valuation
should be of the date on which the
order is issued. Extensive investiga-
ton of decisions. he asserted. failed to
reveal a single case that 5ustifies any
other view.
Should Be Brought to Date.
AS long as the commissions rating is
of July /, 1914, it is the duty of that
body, Mr.. Douglas continued, to bring
the figures down to within gunshot of
the date of its final findings. He then
stated that prices and wages in 1914
upon which the commissions estimates
are based were abnormally low. as it
was a period of financial depression.
1t could not be argued, he commended,
that the present high prices of labor
and material are abnormal and will
drop after the war.
1t is just as reasonable to presume.
he said, that this country will do Eu-
ropes business after the war and that
prices now maintained will continue in
definitely.
Failure of the commissions experts to
include an allowance for the company
Great Falls power site was discussed
at length by Mr.. Douglas. He main
tanned that the law requiring the valu-
alton of property actually used by the
company OF useful to it's business was
sufficiently broad 10 Justify the inclu-
sion of this item. which alone repre-
sents a value of about 100000.
While the site is not being utilized
it is the intention of the company. he
said, to build an auxiliary station there
when it's business requires a capacity
of 100. 900 horsepower. To say that this
property is not useful to the company
because ground has not been broken
for this contemplated Improvement is
unfair. he maintained. 1t would mean
the penalizing of wisdom in looking
forward IN future needs