Evening star., 1923-04-11
Negotiations, if Successful,
Would Avoid Months of
Litigation in Case.
BELIEVE DISTRICT COURT
COULD APPROVE FINDING
Utilities Commission and COMPANY
Already Agree on Value of Ad-
ditions Since 1915.

Advisability of arranging a con-
ference with officials of the Potomac
Electric Power Company, with view
70 settling as quickly as possible
the disputed valuation case. is being
considered by mem bers OF the Public
Utilities Commission, it was learned
today.
presumably the purpose of such
conference, If one should be held.
would be to endeayor to reach an
agreement as to what the value OF
the property should be without go
ing through months and possibly
years more Of court litigation.
still Under Confederation.
whether the commission Will de-
eide even to attempt such a COM
promise of the case was not known
today, but it was ascertained that
such possibility had arisen in III.
minds OF officials.
1t is believed by well informed per-
sons that If the commission and tho
company could sit down together and
reach some agreement on those fea-
lures of the valuation on which the-
olher, that the entire matter of eIer
tric hight rates and the impounded
iund could be untangled within
comparatively short time.
Court May Approve Agreement.
1t also Is believed that the District
Supreme Court would have authority
as the matter now stands, to ratify
IN final order any agreement the
commission and the company might
arrive at
such a course. it was pointed out
today. is not unusual wherein the
parties to a court action after q long
legal battle. agree to compromise and
have It approved by the court
Should an entire reyaluation OF the
power company promptly be neces-
sary the District Supreme Court
and not the Utilities Commission
| must revise the present valuation.
in the opinion of Corporation Counsel
FRANK stephens, counsel for the COM
mission.
Mr.. Stephens reached this belief
today after careful reading of the
opinion of the United States Supreme
Court in which it found it had no
jurisdiction over the case.
In this the corporation counsel diff
fers with Attorney S. r. Bowen for
the power company. who took the
position yesterday that the only
course left to the District Supreme
void and leave the commission 10
make new valuation as of the pres
ent day.
Should Revise Valuation.
Mr.. Stephens says it is clear in his
mind that the decision of the Court
Of Appeals, which now stands as final.
means that the lower court should
revise the valuation along the lines
indicated by the appellate tribunal
The principal ground on which the
Court of Appeals found the commits
sion's valuation IN error was in nor
giving proper consideration 70 war
time values in arriving at reproduc-
tion cost.
According to the corporation coun-
sci, the mandate of the United States
Supreme Court probably will be sent
to the Court of Appeals in thirty days.
ceedings TO the District Supreme
Court.
One side or the other, Mr.. Stephens
said, then will move for a hearing in
the lower court. The District Su-
preme Court still has the original
valuation record of approximately
5000 pages before it as we'll as iii
the evidence in the case.
Allowance for Wartime Prices.
According to the corporation coun-
sells theory. the court then will pro-
ceed to determine from that vas.
amount Of evidence what allowance
the commission should have made for
war time prices and raise the origi-
nal valuation accordingly.
The commission in 1916 announced
the fair value of the power company
to be $10,250,000 in July, 1914, when
the valuation was begun. The com
pany contended the commission
should have made allowance for the
increase which occurred between 1914
and 1915 in the value of the property.
According to District officials, there
is no difference of opinion between
the commission and the company on
the value allowed on all additions to
the property since 1916. In 1917 the
commission gave the fair value as
$11,517. 4SS.23. Since that time the
commission has added approximately
$7.000,000 to the valuation. represent
ing enlargement of the plant during
that time.
The commission in its last rate
order gave the value of the property
as s19.486,0s0.94.