The Washington times., 1925-03-18

Parcels Not Being Used in
Corporations Business
Listed in Valuation
By WILLIAM Mex. CLAYTON.
Leader i'm reDeated battles to de
crease public utility service

Leader IN feDedtcH DdtBcS 70 uc-
crease public utility service
rates.
In its $25, 900 900 valuation, pre-
pared by high salaried engineers,
the Chesapeake and Potomac Tele-
phone Company lists these items:
Land, $1,06O,873
Buildings, $3,154,967.
For land, I allow $519, 702, and
for buildings, $1,695. 200. The diff
ference, lands and buildings COM
bined, is $2,O00,93
My figures are by William P.
Richards, District tax assessor, and
are official. The phone company's
figures were prepared by the ap-
praisal committee of the Washing
ton Real Estate Board and a COM
mittee of Washington contractors.
Not Used by Company.
In my estimate of land value
deducted three parcels of land in
GLIDING vacant lots on Twelfth
street northwest, adjoining the tele-
phone building at Fourteenth and
r streets northwest and at Georgia
avenue and Gallatin streets north
west.
While these lots may in the flu.
ture be used by the company they
are not now used or useful in tele-
phone service. They should be ex.
cluded from any valuation.
/ have taken Mr.. Richards fig
ures of valuation because they rep
resent. in my opinion, as close to
the true value of the company s
property as 1t Is possible to get.
The appraisal committee of the
Real Estate Board is comprised of
leading real estate dealers. They
are reputable men with high
standing here. I do not for one
minute criticize their work, nor ques
tion the accuracy of their figures.
/ merely contend that the tele.
phone company, in making a land
valuation, should accept the asses
sor's figures They are lawful est.
mates of value; the other land
values are personal estimates
Did Not Consult Record.
When the report of the appraisal
committee was recently presented
to the Public Utilities Commission
IL was brought out the committee
did not consult the assessors rec
ords in forming their estimate OF
value.
The city of Washington is d
legally established corporation. Its
executives, such as Mr.. Richards
are men charged with grave re
sponsibilities under the law. Their
opinions are official and final. They
should be accepted, in this case, as
such.
1t is my contention that the
Public Utilities Commission should
disregard all estimates of property
value except those made by The
District assessor.
II Mr.. Richards figures are
proved conclusively to be erroneous
there then will be sufficient reasons
for the commission to accept Other
figures. But until then Mr.. Ricn
ards estimates should be accepted
by the commission as the true
value Of land and buildings OF the
telephone company.
Here let me again refer to those
three parcels of land owned by tn.
company. but now not strictly used
Tor telephone business.
Valued on Present Market.
The company claims a valuation
for these lands. not at what .hey
cost, but at what the company
thinks is their present value. II
this is allowed, the public must pay
pay.
I-All taxes and other expenses
Of the land paid for by the
people.
"A return Of from to 8 per
cent on the increasing value of
the land mot on its cost.
3-The normal increase i'm the
worth Of the property.
IL the Commission allows thi
claim what is to prevent the com
pany from going all over Washing
ton. buying up great tracts OF LAM
and holding them until their valu
increases to such an extent that
sale would net a neat profit?
The value of these lands, in m,
opinion, should not be added to tn
company's valuation until this Ian
Is actually used in the telephon
service.
Will Claim Use.
The company will, of course
make claims that the land now /
used for telephone business, prot
ably point out that many of tn
Continued on Page 22.)