The Washington times., 1920-03-03

Justice GOuld's Great Decision
In Electric Light Company
Valuation
By BILL PRICE.

Justice Gould fully sustained the pubc's valuation of
himself great jurist by his epoch making decision
the valuation of public utilities in the District of Columbia
While his decision rendered in the appeal OF the Poo
mac Electric Light valuation the principles he enun
cates will doubtless be influential if not binding in Similar
appeals before the District Supreme Court from other
valuations made by the Public Utilities Commission.
When jurist with the magnificent legal mind OF JUS
tice Gould finds concusvely upon many principles in
voved in other valuation proceedings the wisest thing the
two railway companies of Washington can do is to with
draw the appeals they have taken at least seek to
promise with counsel of the Utilities Commission upon
agreement that will all this litigation from the
local courts and clear the way for better understanding
by Congress and the public of the irritating situation pre-
valng in the local traffic situation These appeals are
obstacles to the unfcation of the two lines so heartily
sought by the public.
For it should be known that almost the same claims
rejected by Justice Gould in the complaint of the p f. p
Co. made by the Washington Railway and Electric Com
pany and the Capital Traction Company in appeals they
before the District Supreme Court from valuations of
their properties.
Justice Gould rejected, in most forcefu manner for
instance the claim that the P. E. p. is entitled to
valuation for easements or franchise IN the pub
lie paid nothing for these franchises and has no
Fright to capitalize them against the public he
points out that this claim upheld it would make
public use of the streets destructive of public rights
Bully for Justice Goud The claims are made by the
two railway companies.
The E. p also claimed $780, 900 reproduction cost
for compensation to concevers" and promoters Justice
Gould holds this item to be pure Pigment of the imag
Again the Justice agreed with the Commission in
knocking out claim for $10oO0N for certain property
rights at Great Falls which the p E. p acquired from
1.-THE W. and in little deal of financing that will not
be forgotten This power site has been used for
supplying electric power Washington and may never be
used Why should the public pay return that sort of
thing? Justice Gould shows where the electric light COM
pany did not have perfected title to the water rights
lit values 100000 at the time of the Commissions
order The United States about to take hand at Great
Falls and these "rights'' will then be attacked by the
Government
Justice Gould finds that fair valuation" and
includes every LEGITIMATE expenditure made and
ery chargeable capital account and where deprcca-
has been properly provided for and useless property
written off.
The decision holds that in the inception of public ui
ties where risk and danger to capital attached the law
gives them the to larger return but not the right to
larger valuation When the period of risk is passed and
the enterprise safely established the justice finds he law
reduces the rate of return to fair and reasonable percent
age upon the fair value of the property and he says
that valuation found not much for the protection OF
the investor as protection of the RIGHTS OF THE PUB
IC whose patronage is the prime factor in the of
the enterprise
Here's Judge who figures THE PUBLIC as a very
mportant part of valuation and atemaDg proceedings
and findings.