The Washington times., 1921-11-15
Increased Valuations
Mean Higher Rates
By BILL PRICE.

By BILL PRICE.
The District Court of Appeals has rendered decision
which, if sustained by the Supreme Court of the United
States, will that the people of Washington will
have to eventually pay higher electric light rates and
higher street fares.
The principles laid down in the decision while ap
plying to the valuation Of the properties OF the Po-
tomac Electric Light Company, will doubtless be ap-
piled by the court to the valuations OF the Wash
ington Railway and Electric Company and the Capital
Traction Company, both of which have appeals pending
from valuations fixed by the Public Utilities Commits
sion.
The Wgsigtor Gaslgt Co and the Chs.apsafs end
cosso and appsni the eo@ss
In the of the Washington Railway and Electric
Company, for instance, the difference between the
valuation of its properties found by the commits
sion, and its claims of valuation is the trfng
of about 100000 This includes fat little items of
millions of dollars for 'rghts in the streets of Wash
ington and for promotion expenses years ago.
The Court of Appeals made attempt to indicate
how much increase there should be in the valuation
of the p E. P. Company and will probably not do
in the w. r. and E. and Capital Traction Company
cases.
The opinion of the court held that the PRESENT
COST OF REPRODUCTION is an important element to
be considered in fixing fair and reasonable values of
utility properties. The Utilities Commission tried to
reach valuations of NORMAL TIME making them
of July 1, 1914, and December 81 1916. 1t refused
to add dollar due to the decentralization of the war
As pointed out in the minority decision by Chief
Justice SMYTH, the P E. P Co. did not put in actual
money to bring about the increased valuations except
such increases came from capital investments au-
thorized by the P. U. c.
The majority decision plainly holds that the p T.
c. should have taken into consideration the rise in
values between July l. 1914, and December 81, 1916
There sharp rises in values the having been
in progress about seventeen months.
As pointed out in the decision of the court cit has
fhof%h L..
to public utility upon the reasonable value of the
property at .e time it is being used for the public"
If the decision is upheld by the Supreme Court the
Potomac Electric Power Company will not only come
into trust fund of $1,5OOOOO impounded to re-
turn to electric light if the court decided against
It, but will be entitled to higher rates for electricity
than now being charged.
The owner of the P. E. P. Co.-the W. R. and E.
will benefit enormously by final favorable decision
IN its own valuations to the extent that it NAV be
entitled to as much 10-CENT CAR FARES in Wash
ington
This is joyous outlook for the people of Washing
ton, but will have the effect Of redoublng the efforts
of the entire city to compel merger of the two rail-
way companies. Congress may feel that its mis-
sion and duty to do something for this city to end
the abominabe and ntermnable troubles growing out
of the street situation.
The Capital Traction Company will have it's valua-
tons increased should the Supreme Court sustain the
Court OF Appeals but the increases will not be so aroe
as for the W. r. and E. One effect of this NAV be 70
bring about commonsens understanding between the
two companies, resulting in a merger.
About the only satisfaction to the public is that the
court does not undertake to indicate how much the in
crease should be- Even should the Supreme Court agree
with the court below the matter of valuations must po
back to the Utilities Commission for decision There
will then be some more appeals to the courts and
tying of everything that any increase in car fares
may be SOME YEARS OFF.