The Washington times., 1919-09-06

tain the value of the property OF every
public utility in the District OF Col
umbia in order that the commission
should intelliRently and fairly arrive
at determination as to what should
be allowed by way OF earnings to the
company"
The Rock Greek Fanehase.
Mr.. Gardiner then enters fully into
the purchase by the Rock crek Rail
way Company-now the Capital Trae-
tion Company-of the washington
and Georgetown Railway Company.
This purchase was by contract, which
the majority OF the commission re-
fused to consider binding upon them.
This purchase was made through .
contract entered into September 21,
1895, a committee interested Ia the
two roads having found the value OF
the latter road to be S10,T50, 900. Mr..
Gardiner points out that the property
was most valuable then. extending
through . portion OF the District that
is still most Valuable--that from
tGeorEetown Ito the navy yard and
elsewhere.
The consideration was an amount
equal to the market value Of the
stocks and bonds Of the Washington
and Georgetown Company. This
market value, Mr. Gardiner holds,
was not made by temporary arrange.
ment nor by initiation for. stock job
bing. The company was earning and
paying large dividends. Much diff
ficulty was found in obtaining the
consent OF stockholders to the sale.
FThA GQTa NOD ~
gress and OF the District Commits
sioners. The company had the con
fidence Of the public and gave good
service.
81, for one" says Mr.. Gardiner, be
lieve II TO be the duty Of the commits
sion, to protect those who honestly
and innocently invested their money,
and not take from them $5,143, BOT Of
the value Of their property because q
commission created fifteen years after
the transaction believes that the pur-
chase price was in excess Of the sum
the commission thinks should have
been paid"
Mr.. Gardiner then enters into vari-
Gus legal opinions which sustain these
conclusions, especially the ConsoIi-
dated Gas case, rendered January u,
1909
MI OdEuluGI ueClaEGS Ile OQ~
preme Court in this case did say and
knew what it was saying that fran
chises of this nature are property, and
cannot be used by others without
compensation"
This Franchise Question.
This subject of franchise is one Of
the biggest in the valuation findings
In the Washington and Georgetown
case, the majority MEMBERS of the
Commission declared that according
to the Capital fractions own figures
the tangible property transferred to
it from the Washington and George
flown Company amounted to only
IS. 800, 900. in round figures, the bal
ance of the $1O,T5O, 900 being in tangi-
bls property which may or may not
be considered as representing fran
chise value"
Then the majority sayaI S'The
question IL presented whether or
not the public shall be compelled
for all future time to Pay = re-
turn uPOH an intangible VaIeee
which certainly does not repre-
sent investment
Same as to W. r.. &c.
Practically the same question as 70
Intangible values" is presented in
the claims Of the W. r. & E., which
Mr.. Gardiner must pass upon. That
company claims $1,000. 900 for prop
erty rights in easements" literally
speaking, franchise rights.
Cost Companies Nothing.
The majority members hold that
these franchise rights cost the railway
companies nothing except as to at
torney's fees before Congress. and
that the public should not be com
PEELED to pay a return upon something
which the companies paid nothing for,
and have no right to ask valuation
for
The w. r. and E. also claims that
10 reproduce their properties at this
lime would cost about 1880, 900 more
than the reproduction cost arrived at
by the Commission as OF July 1. 1914,
live years ago. Mr.. Gardeners opinion
shows his view on this subject, al.
though in the Capital Traction case
he did not add anything to the valua.
ion OF the Capital Traction for diff
ference between cost OF construction
July /, 1919, and the present time.
Don't let careless expenditure make 1
I sieve of your purse. Buy wisely, I
md increase yOuF money hoI6inRn ~