Evening star., 1924-05-22
FINANCE D. c. POWER
PRIVATELY, is PLAN
Banking Representative Suggests
Concern Build Generators and
Carrier Lines.
SUBSTITUTE BILL OFFERED
Favors 100-Year Contract for
Economy to Users.

Proposal for legislation under
which third party would enter with
the federal government and the Poto-
mac Electric Power Company in de-
velopment of hydroelectric energy on
the Potomac River at Chain Bride ge
and Great Falls and distribution to
the government workshops, public
utilities and residents of the District
at great reduction in cost, and sup
ply the surplus energy in neighboring
territory, was made today to the sub
committee of the House District COM
mittee. when it resumed hearings on
this proposed water power develop
ment.
c. T.. Martin, representing E. H.
Rollins & Sons of New York, whom
he described as one of the largest
bankers for public utilities in this
country, offered q substitute bill for
development of hydroelectric power
for the Potomac in accordance with
the report of Maj. NJ c. Tyler.
The proposition really was thai the
federal government should build the
two dams at Chain Bridge and Great
Falls and construct three storage res
ervoirs A lessee, which might be +. HI.
Rollins & Sons. would build the power
generating plants, subStationS and
transmission lines to connect with Sery-
ice distribution mines in the District.
Some distribution company, probably
the Potomac Electric Power Company.
which has a distribution system already
in operation, would carry this power
TO the consumers in Washington.
Mr. Martins draft of substitute
bill would give the federal power COM
mission authority to make lOo-year
lease for generation of the power after
the dams had been built He estimated
that the cost of building such stations
and transmission lines would be ap-
proximately s15,000,000, or one-third
the cost of the entire Potomac River
development.
Mr.. Martin said that L. Fl. Rollins
G. Sons has had two eminent en-
gineers studying the proposed project
for the last six or eight months, and
that while they have not yet finished
their work. the concern believes that
the development as proposed IN the
Tyler report can be worked out
economically so as to furnish power
in Washington and surrounding terri
tory at a considerable reduction in
price, and that in consequence, if the
Federal Power Commission is author
lied to make such a contract. he be-
lleNtS N SoiiS VIII
endeavor to secure the contract.
No Competition Intended.
Mr.. Martin expressed his opinion
very emphatically that it would be
foolish to think of distributing the
hydroelectric energy in Washington
by any other system than is now
in operation. meaning the Potomac
Electric Power Company, and that he
had no idea of suggesting that any
one should so into competition with
the existing distribution system.
Replying to question by Chairman
Zihlman, Mr.. Martin said that while
E. H. Rollins & Sons is one of the
largest public utilities bankers in the
country, neither directly nor indirectly
do they own. control or hold any of
the stock or security of the Potomac
Electric Power Company.
The proposed substitute bill gives
the federal government first right TO
any power development, public utili-
ties and consumers in the District
second right, and then allows the sur
plus to be sold anywhere else the
lessee might find a market.
Mr.. Martin explained that the pro-
vision for 100-year contract is to
lessen the cost, so that the energy de-
veloped may be sold at a much lower
rate to consumers. He explained that
the IUU- cdr TdlIcT IIldT d I1ICy-yedr
contract would make possible distri-
button throughout an area with a
fifty-mile longer radius
Urges Protection for Public.
Representative William c. Hammer,
Democrat, of North Carolina, argued for
stricter provisions to protect the public
interest and specifically limiting the
rate to be charged to consumers by
allowing only a fair return to the
operating company.
Hearings will be resumed tomorrow
morning. W. f. Ham, president of
the Potomac Electric Power Company,
desires to make a statement. A rep
resentative of Stone & Webster oe
Boston is also prepared to make a
statement. M. o. Leighton, formerly
connecte ed with the city water supply,
will be heard, and Representative
Thomas l. Blanton. Democrat, of
Texas has notified the committee that
he wishes to call two engineers to
testify that the Potomac River de-
velopment will cost nearly twice as
much as estimated in the Tyler re-
port.