The Washington times., 1919-09-15
Both Sides in Valuation Dispute
Depend on Wilcox -ConsOIl-
: dated Gas Decision.
By BILL PRICE.

o. s.. ought to become TO Washington
people the most famous Supreme
Court decision ever handed down, be-
fore the courts have finished with the
valuations OF the Washington Rail-
way and Electric and Capital Trac-
tion compapnies.
Every citizen and every school boy
win know about II and be able to dis
course upon it, for this case is the
legal foundation upon which the ma
tority OF the members OF the Public
Utilities Commission and the minority
member, Mr.. Gardiner, reached their
conclusions. The attorneys for the
railroad companies freely quoted this
. same case in their contentious before
the commission for larger valuations.
Relied On By Beth sides.
Never was q Supreme Court deci-
aon 90 confidently relied upon to
sustEin absolutely contrary hudings
and views which vitality affect the
public Interest to an etXent hardly
realised at this time.
Colonel Kutz. chairman OF the p.
p. Z. c.; Commissioner BrownlOw and
Conrad Syme, counsel Of the COM
mission. are absolutely confident that
this Wilcox decision sustains to the
fullest the majority opinion on vaiua-
tions. On the other hand Commits
aioner Gardner thinks there IL no
question that this same decision up
holds BIS conclusions. The railway
attorneys are OF the same mind
FuaSamsntaI Differeaces.
The two widest differences between
the majority and minority p. U. c. de-
cisions related TO whether franchises
have value, and whether a valua-
tion should be Of the present date
rather than Of q past date, when con-
ditions were more or less normal
Commissioners BrownloW and kUtz
stood like adamant in their determi-
nation, that frGuchises cost public
utilities OF Washington nothing and
should not Be given a valuation upon |
which the public must pay an in- I
creased rate of fare 70 give fa'r |
return 90 the utilities.
They were Just as positive that |
the utilities are not entitled TO in
,sreased valuation because OF the
present high prices as compared to !
rices before the war. II there has
been appreciation Of values, due to /
lahe rise in the price OF ali commodi- /
eaton cid not cost the railways a |
siafitou did not cost the railways q
1Ys-cent piece and there is no reason |
Why the public should pay on this
also.
Dfner On AIntansibIe.-
On this question Of franchise values, |
~ what the majority members call
Siutangibles," Mr.. Gardiner allowed |
ne Capital Traction S5,1OO.O00 more |
"a valuation than the majority mem
beFa. He did not hx hgure on ap-
mFeciated values but did sustain the
claim that present-day costs Of repro |
Suction should be considered. This |
difference between 1914 and 1919 |
Would be about $1,000. 900 as to
Capital Traction making a total
valuation for Ch6f road Of about $21,- |
OOo, 900 instead % $14yOoo,0oo.
W.R. ana r. Clair.
On the same basis the valuation Of |
hs ". r. and =. would go up close |
% $40 OOo. 900, instead OF $4,000, 900, |
aE estimated today by some officials |
of the =. y. G.
InstsSd Of total valuations OF a lit |
ae over $4,000 900 found by the |
% be paid the total would 80 some |
thing over $50, 900 900.
Only IN the one item, however, that /
Of adding s., 100000 TO the value OF
capital Traction, did Mr.. Gardiner hx |
Aeanits figures that he thought were /
right and proper.
History - VViIIeoK Case.
TIE wilcox ease was that OF VIII
nan r wilcox, constituting the Pub /
ne Service Commission Of New York |
nrRinst the Consolidated Gas Com
pany. decided January 4, 1919, in
VolvinG questions of valuation and
rates OF gas.
Mr. Gardiner quoted this decision
freely, especially that portion OF
Justice Peekham where the Supreme
Court concurred with the court be-
lew In holding that "the value Of the
l. -
the time OF the inquiry regarding the
TateS." and also: "It can not be dis
puted that franchises OF this nature
are property"
The OtheF Side.
In the Capital Traction case the
majority Of the commission quoted the
wilcox case freely and laid especial
pmphasis upon this portion Of the
BuDrsme Court decision.
what has been said herein re-
garoing the value OF the fran
chise In this case has been neces-
aarily founded upon its own pc
cultar facts, and the decision
thereon can form no precedent in
regard 20 the valuation Of fran
ehlse generally, where the facts ,
are not similar TO those in the
ease before US"
The majority Of the P. q q bsIs
hat not only are the facts in the
". r and z. dissimilar in every way {
from the Wilcox case but that the
laW eontrouing the facts is dissimI- {
lar u every respect The majority {
held that the difference in the New, {
York laws covering the Wilcox case
Eld the District laws which author-
lged cancellations Of both the pres
tnt railway companies are averv I
laarked-"
Call Q Per Cent LIBERAL,
The Supreme Court in the WILCOX /