The Washington times., 1923-01-18

WILL HEAR
PLEASON
VALUE
Briefs All Filed. Oral Argu-
nents Are Expected to
Begin Tomorrow.

The United States Supreme
Court will begin consideration to-
morrow of the Potomac Electric
Power Conpanv's valuation case,
involving an impounded fund of
more than $500, 900. The Public
Utilities Commission contends that
this fund, collected from electric
current users. should be returned
60 the public, while the electric
company seeks the money for its
treasury.
Hears Oral Arguments.
Conrad III. Syme. special counsel
for the commission. and Frank II.
Stephen, District Corporation Coun-
sci. win argue the case. for the
commission. The company win be
president, and John s. Barbour.
The commission has submitted
briefs setting forth their conten-
lions. Tomorrow the court viii
hear oral arguments.
A decision from the court, ex-
pected in the next few months VIII
bring to an end a case which has
been hanging fire since 1917, when
the electric company went into the
District Supreme Court and at
tackled the valuation of $11 ,2S1170I
as set by the commission. The
compay values itself at $23, 235 900,
double that set by the commission
It was this valuation which
started all the litigation. AS soon
as the valuation was completed the
Commission reduced electric rates
from 10 to 8 cents per kilowatt
hour.
The company sought a temporary
Injunction preventing the new rate
becoming effective. The court
granted the injunction, but pro
vided that the difference OF 2
cents be impounded until the valua-
don case was finally decided.
Gould UpEOlds Commission.
The company contended the rate
should remain at 10 cents, basing
their claim on their own valuation
of S23 GOO, 900. The District Supreme
Court had the case under advisemeut
for more than a year, and on March
2. 1920, Justice Gould rendered a de-
cision sustaining the conmission's
valuation.
ThisFdecision meant Justice Gould
approved OF the 2-cent reduction.
The company Immediately carried
the case to the Court Of Appeals. In
the meantime out OF every 10
cents collected by the company con-
tinued to be impounded.
In the Court of Appeals the COM
pany won its case. This court re-
versed Justice Gould's decision.
About a year ago the commission
carried the case to the highest court
In the land, where it now awaits de-
cision.
About a month ago the commits
sion filed a brief setting forth its
contentious. The company's brief
viii be filed, 1t Is expected, in the
next few days.
When the case comes up tomor-
row each side will be allowed one
hour for argument. 1t Is possible,
though, that the time may be ex-
tended.
II the commission wins the case
then the impounded fund of 81.
100000 will be returned to electric
current consumers. II the COM
mission loses the company gets the
money.
Asserts Commission Erred.
There is possibility that the
. court may not reach the case to-
morrow, but it will get to it within
several days, Mr.. Stephens said
today.
The principal contention of the
company is that the commission
erred in placing the value on its
property according to prices existing
in 1914.
1t contends the valuation should
have been fixed as of 1916 when
the valuation was announced. In
1916 wartime prices existed, and
this, 1t holds, would increase the
valuation considerably. The COM
pany also attacks the commissions
failure to value railway property,
purchased by the company at 81
O00, 900. The commission values il
at 100000. The company attacks
the commissions failure to allow
the 100000 spent for the Great