The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1923-02-01
7 INC
PRICE IS
UPHELD
President Ham Calls Charge
Low, Although Company
Earned 80 Per Cent.

The public hearing on reduced
rates for the Potomac Electric
Power Company came to a close
early this afternoon and the Pub.
lie Utilities Commission announced
q determination would be given
out in a few days.
William +. Ham, president Of
the electric company, was the
chief witness of the day. He
maintained throughout his testi-
mony that the present rates were
"unreasonably low" but urged
their continuance.
Public Not Represented.
There were no representatives Of
the public present at the hearing.
Mr.. Ham pointed out that there
was no public demand for lower
electric rates.
L. Z. Sinclair, general manager
OF the electric company, was the
only other witness beside Mr.. Ham,
He told of the future plans of the
company, gave estimates of opera
tons for 1928, and discussed the in
creased cost of coal.
Ham said that a reduction would
constitute a taking of the property
Of the electric company without
due process of law and without
justification.
'HThere is nothing before the
Commission that would justify the
present inquiry and hearing" Ham
said in his opening statement. He
pointed out that no complaint OF
any kind had been made that the
present charges were in any re-
spect unreasonable or unjustly dis
criminatory.
The hearing was opened today
with a statement by Walter C.
Allen, executive secretary of the
Public Utilities Commission. Allen
stated the purpose of the hearing
and declared that the electric COM
pany was earning a return Of S.9
per cent on it's investment.
Discuss Depreciation.
Secretary Allen then reopened the
depreciation question. He produced
figures to show that on January l,
1917 the company had to it's credit
in the depreciation fund 1897 ,117.99
and that on December 81, 1922 the
credit in this fund was $3.50. 232.85.
At this point Mr.. Allen said that
the net accrual in the general
amortization account of the COM
pany totalled 81 1922, 114.86 which, he
intimated he believed, should be de-
Quoted from the fair value OF the
company as of December 81, 1922.
eff this deduction had been made
the earnings of the company would
be 9.88 instead of $50 per cent"
he said.
Allen said that in the future the
depreciation fund would be regarded
as borrowed money ana would here
after be deducted from the fair
valuation.
This action by the commission
would have material effect on
rates and tend to reduce them.
President Ham, in continuing his
testimony, declared the present
rates were 'unreasonably low" and
that there was no reasonable basis
for a rate reduction.
He compared the city OF Wash
ington with other cities of the
country with a population exceed
ing 100000.
Out of seventy-three large cities,
we find that the electric rate is
higher in fifty-four of these cities
than the existing rate in Washing
tom he said. '1n nineteen cities
the rate is lower. OF these nine
teen cities seven Of them use water
power.
He also declared that the whole
sale rates in Washington compared
very favorably with other cities of
the country.
The electric company president
also pointed to the fact that the
present rate of 1857 cents per kilo-
watt hour resulted in a very COM
plicated system of accounting, there
by increasing the cost of business.
He said that this cost must
eventually fall on the public.