Evening star. [volume] (Washington, D.C.) 1854-1972, 1924-12-27


of ia per cent return. the rate fixed
for the next year would be so ar
ranged as to give the company $50, 900
less in earnings.
Announcement Is Sensation.
Announcement at the District
Building today came as a bombshell
to persons who have been following
the long legal battle that began in
1917 and which has gone on through
the District Supreme Court, the Dis
trict Court of Appeals and to the
United States Supreme Court and then
back to the District Supreme Court.
Although members Of the commits
sion and officials of the power com
pany have been engaged in mysteri-
Gus conferences for the past few
days, so closely did they guard the
proceedings that no one but them
selves were aware of the fact that a
settlement was actually impending.
Those present at the meeting this
morning, at which the final agree
ment was reached, were: Commits
sioners Rudolph and Oyster; Acting
Engineer Commissioner Raymond
Wheeler, Maj. Covell. William F
Ham, president of the power com
pany; S. r. Bowen, vice president and
general counsel; A. G. Neal. con
troller of the company. and Charles
J. Bell and Eugene Thompson, mem
bers Of the board Of directors Cor
poration Counsel Francis H. Steph-
ems was present as legal adviser to
the commission.
Agreement Seemed Remote
About a month ago Maj. CoyelI con-
ferred with Mr.. Ham on the posi-
bility Of reaching compromise that
r4N L.
pending a final disposition of the case
but without result. No one though
at that time that a permanent settle
ment would soon be reached One
week ago Justice Wendell p Stafford
of the District Supreme Court, who
for several months has had before
him the task of adjusting the valua-
ton, called together counsel for the
company and the commission and
gave them an outline of what his
forthcoming decision probably would be.
With this Information in hand. MAJ.
CoVeQ and Corporation Counsel Ste
phens began the series of consulta-
tions which eliminated in today's set
tlement. District officials did not CON
ceal their qualification over the set
tlement arrived at, indicating that
they regarded it as fair and beneficial
to the public.
y
bartering, the representatives of the
company were closeted with the com
mission in several long conferences.
The final meeting this morning was
a brief one, following which the an
nouncement was made.
Litigation of Long Standing.
Although Engineer Commissioner
Bell, chairman of the commisSi on.
was not in the city today for the final
settlement, 1t is known that he play
ed an important part in seeking to
bring the long fight to an end.
The litigation began in 1917, when
the Utilities Commission announced
that it had fixed the fair value of the
Potomac Electric Power Company at
slightly more than $11,000,000, as or
December 81, 1916. The value as Of
1914, when the proceedings started,
was in round numbers, S10,250,000.
Two years elapsed before the valua
ton was completed and the commits
sion added net additions to the plant
during those two years of about $3.50.
000 making the value slightly more
than S11, 100000.
On the basis of this valuation the
commission ordered the rate for cleo
tricity reduced from 10 cents, which
had been in effect for a number OF
years, to cents.
Company Files Two Suits.
The company went to the District
Supreme Court and filed two suits.
one attacking the valuation as being
too low, the other asking that the
Scent rate be set aside because it
was based on the alleged erroneous
valuation.
The District Supreme Court granted
the company an injunction under
which it continued down to the pres
ent day to collect the old 10-cent rate.
but required it to set aside the ad-
ditional cents. which has accumu-
lated to the amount of S6.000,0o0.
In the first court decision the late
Justice Ashley NJ. Gould decided in
favor of the commission. The COM
pany went to the Court of Appeals
which after deliberation reversed the
lower court, holding in effect that
the commission failed to make proper
allowance for high prices which pre-
vailed during the interim between
1914, when the valuation was started,
and the date it was announced, In 1915.
The commission then took an appeal
to the United States Supreme Court,
which ordered the litigation returned
to the District Supreme Court with
out passing on the merits of the case.
(Confinued an paca C0Ip~r 4 :