The Washington times., 1924-02-04
VAL(JA ION
. Of PEPCO
IS DUE
SIS, 900, 900 Fund at Stake for
D. c. Public in Case on
Call Tomorrow.

company valuation case Will
come up before Justice Wendell
P. Stafford in the District Su-
preme Court tomorrow morning.
This case, involving an i'm
pounded fund of $5,OOO,0O0 and
the most important utility case
ever brought before the local
courts, is now in its final stages.
Argument To Be Long.
-Four days at least will be con-
sumed in arguments. There win
be no witnesses. Attorneys for
the Public Utilities Commission and
Potomac Electric Power Company
Will use arguments based on the
findings of the commission when
1t announced the valuation Of the
electric company.
The result OF this case viii have
far-reaching effect on public
utilities in the District. It may
result In a change of the rates
now charged by the various utility
corporations.
Briefly, here is the case ana its
history in a nutshell.
Began In 1917.
In 1917, the Public Utilities Com
mission announced that the fair
valuation of the Potomac Electric
Power Company was $11,23I, I,I70.43.
On the basis of this valuation.
electric rates were reduced from
10 to cents per kIowatt hour.
The company Immediately pro-
tested, claiming &. valuation Of
$2S,2S5,SS7. They went to the
District Supreme Court and asked
an injunction restraining the Com.
missioners from reducing rates. In
dnother suit they attacked the
commissions valuation.
Ine District Supreme Court grant
eo the injunction. In doing so,
however the court decreed that the
electric company should continue
hour and then ordered the cents
d1fference set aside until the
valuation case was finally decided
In the courts. The courts must
decide who gets this fund. the
company or the public.
Fund Grows Fast.
Since that time, the commission
has changed the electric rate, Dur.
ing the war, it went up and since
has gone down. Always, however,
the difference between the commits
sion's rate and the 10-cent rate has
been impounded. The impounded
fund now totals about 5000, 900
and is increasing by more than
100000 a month.
The valuation case came up in
the District Supreme Court. The
Utilities Commission won. The case
went to the Court Of Appeals. This
court returned a verdict for the
electric company. 1t was not,
however, complete victory for the
company. The court found the
commission in error in making it's
valuation as Of December. 1914. in
stead Of 1917, when the valuation
was announced. There was q con-
siderable difference in the com.
pany's worth when valued as of
1917. when costs were high and
In 1914 before the war.
Retaliation Ordered.
The commission carried the case
to the United States Supreme Court.
This court denied Jurisdiction. The
case came back to the Court Of APP
peals. This court instructed the
District Suureme Court to revalue
the commissions property in ac-
cordance with it's decision regarding
the commissions error.
This brings the case up to its
present point. The commission is
arguing for the valuation It an
nounced in 1917, while the company
Is seeking a valuation millions of
dollars higher. Inasmuch as rates
are based on valuation, the case is
most important. Valuation cases
OF other corporations are pending
and the Electric Company's case is
q test.
Syme Is on Job.
Arguments tomorrow will be
opened by Frank H. Stephens, Dis
trict Corporation Counsel, and gen.
eral counsel Of the Public Utilities
He will be followed
by John 8. Barbour, counsel for the
eiectric company. Next will come
Conrad H. Syne, who will close the
case for the commission. s. r.
Bowen will close the case for the
Mr.. Syme was until last July re-
aimed as special counsel Of the
Congress cut out his
salary during the past year and
.hus officially severed his connec-
ions, with the commission. The
Times and The Wash
ngton Herald then raised q fund
II $4,000 to continue Mn Gynnafm