Evening star. [volume] (Washington, D.C.) 1854-1972, 1923-04-10
PEPC0 VALUATION
NEXT STEP IN FIGHT
Both Sides Expect Court to
Decide Upon Revision or
Reference to Commission.

Results of the United States Su-
preme Courts decision yesterday dis
missing the appeal of the Public Util-
tiles Commission in the Potomac Elec-
trio Power Company case on the
ground that the act creating the COM
mission did not confer on the Su-
preme Court the right to review pro-
ceedings of this kind were seen today
by attorneys for both sides, as follows:
/. Conrad H. Syme, special counsel
for the utilities commission, said that
the long-drawn-out battle between
the commission and the power COM
pany had: 'just begun"
.. S. r. Bowen. counsel for the
power company, took the position
that the utilities commission must
make a complete revaluation of the
property as of the present time, and
the impounding will continue until
this new valuation is finally deter
mined.
8. The impounded fund of nearly
100000 will not go to the COM
pany Immediately, lawyers ION both
sides agreed.
Next Step in Doubt.
1t was apparent from the views
expressed by the lawyers today that
the next step is for the District Su-
preme Court to decide whether it
should now set out to revise the old
valuation of 1915 or drop the whole
question and let the Utilities Com
mission place a new value on the
property as of 1928.
If it is left to the commission to
lyra i,n, ha&
all probability will have to go to
Congress for an appropriation to
employ the experts needed. The ap-
preparation act for the next fiscal
year allows the commission only
$4,000 for incidental expenses over
/ and above the salaries of the pres
ent corps of accountants.
Power Company's View.
The effect of the decision of the
United States Supreme Court, as seen
by Attorney Bowen for the power
company, follows:
From a reading of the opinion of
the court it appears that the dismis-
sal of the appeal of the commission
leaves the action of the Court of APP
peals in reversing the Supreme Court
of the District as final. That the eff
feet of such dismissal would leave
the lower court nothing to do under
the decision of the Court of Appeals
but to declare void the valuation order
of the commission.
expressly require a valuation to be
made as of the date thereof. That Is
to say, reinventory to which pres
ent-day prices should be applied"
Impounding Continues.
1t should be remembered that the
injunction under which the company
has been setting aside the difference
between the 10-cent light rate and
the 7.6-cent rate was issued by the
District Supreme Court in a rate case
entirely Independent of the valua-
ton litigation. On this phase Of the
case Mr.. Bowen said:
Until the valuation question is
disposed of the action in the rate
case, which has not been taken I'D
remains as at present and the i'm
pounding Of the difference between
the old rate and the billing rate
continues"
The statement of Attorney Syme
| for the commission follows:
ut appears to me that the Supreme
Court Of the District of Columbia,
udViuS DeIOre 1t -thG entlre record
before the commission, which includ-
ed costs as of a period approximating
| the, date of the valuation of Decem-
| Der 81, 1916, and having the right
| under the law to modify the findings
Of the commission, may hold that
the case is now before it in such a
situation that 1t may exercise it's
judgment as to the weight of the
testimony and give such considera-
ton to the higher costs Of 1916 as an
element Of value in reproduction cost
as it may deem proper.
Difference I'm Reproduction.
TT was evident that the Court of
Appeals did not consider that the
commission would have been justi-
fed in allowing the high prices of
1916 as basis of value, because 1t
says in its opinion:
There Is a very substantial DIFF
ference between the present cost of
reproduction as one of the essential
and important elements in determin-
ing the present value and the ac-
ceptance as conclusive evidence OF
such value of mere expert estimates
of present cost of reproduction
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