The Washington times., 1919-03-18

RESTORE ITS
1O-CENT RATE
Application to Utilities CON-
mission Will Be Turned
Down, Is Belief.
By BILL PRICE.


Notice has virtually been served
upon the Potomac Electric Light
Company that in its application to
the Public Utilities Commission for
authority to restore its former rates
OF 10 cents per kilowatt hour for
elec.rie lighting in Washington it is
likely to have little standing in
court" as the lawyers put il.
This was in effect done in the de-
cision in the gas case. in which the
gas company was given just suffi-
cient raise in the price Of gas to per
nit its stockholders to get about
per cent on their investment during
The coming year. The well-known
policy of the Commission, inaugU-
rated several years ago, of separating
the affairs of the Potomac Electric
Light and the Washington Railway
and Electric Company is also a fac
tor in telling which way the wind
is blowing.
An examination OF the earnings of
tho Potomac Electric Light Company
for the year 1918 shows that while 1t
failed to net enough money to pay its
customary IL per cent to its owner,
the W. r. & e, it did earn more than
D per cent upon its own valuation,
and that it is unlikely its returns
will fan below that rate during this
year in spite of probable increased
cost Of coal amounting to something
like SIC. 900. The Commission holds
that per cent is enough for public
utilities in these times and per
cent about right in normal times.
Hearing Set for March "a.
The hearing upon the application OF
the p. z. p. Company is set for March
"A, and the only thing that is likely
to cause a change in the policies Of
the commission, which now mean nc
additional increase for electricity ia
Washington. is a decision by Justice
Gould, of the District Supreme Court,
upon the appeal by the company about
= year and a half ago from the de-
Cision Of the commissi~h lowering
electric rates here to cents pcc
kilowatt hour. Although the people
are still paying 10 cents, cents IF
that is impounded in a trust funo
with which to repay users in case TIE
courts decide against the company.
Whatever Justice Gould's decision
NAV be, the Public Utilities Commits
sion viii be disposed to follow il, al
though that will be discretionary.
pending appeals to the higher courts.
Justice Gould has before him net
nnly the question Of rate but that OF
valuation Of the properties Of the
company. In the event that he fixes
Ehe valuation at a medium between
the claims Of the company and the
findings OF the commission two years
ago the Utilities Commission would
Irobably have to revise its present
policies to some extent.
The latest information is that jus
Iice Gould will try to write his opinion
" ithin the next ten days or two
weeks. In anticipation that he will
render an early opinion the commits
sion will complete its hearings in TIE
p. z. P. case and probably delay its
findings a short time
w. R &E. Case Friday.
The petition Of the W. R & +. for
an increase in its earnings, owing TO
its financial plight, will be heard be-
ginning next Friday. The indications
now are for a mighty warm hearing.
Citizens associations in all parts Of
washington have gone on record
against any increase in the flat rate
Of fare, and have appointed repre-
sentatives to be present. These as
sociations have strongly denounced
the road. The Federation of Citi-
zens' Associations, through w. NICK.
Clayton, have filed a demurrer to the
petition being heard at this time on
I; number Of grounds:
l. The petition is vague, uncertain,
Indefinite and offers no substantial
method by which relief can be given.
= That the physical valuations Of
ne properties Of the companies have
.ot been completed as basis for
future rates, and, therefore. no just
-:,tes can be fixed until the valuation |
: completed.
B. That there has not vet been Suf- !
<icient time to thoroughly note re-
,ults from the increase TO 5 cents |
.yiven the company November I, 1918. /
T. That il is not possible to give |
increased fare to the w. r. & L. and /
-ot 20 the Capital Traction, which !
-.as not asked an increase.
5. That the Commission must take |
notice Of the character and kind OF
-ervice now being rendered by the |
company, which is by no means up
% the requirements commanded by
he Commission. No Increases OF
-evenue should be given until the
company lives up to the orders Of the |
commission in the matter OF service |
y the Duhlic