Evening star., 1925-02-18
PHONE CO. To CLAIM
S25,0DQ,0O0 VALUE
IN RATE CUT CASE
First Session of Hearing De-
velops Dispute on Prop
erty Valuation.
PUBLIC UTILITY TOTAL
is DECLARED TOO LOW
Bell Says Commission Will Make
New Appraisal if Need
Is Proved.

A valuation of approximately $25,-
100000 as of present-day price levels
is expected to be claimed by the
Chesapeake & Potomac. Telephone Co.
in the rate hearing which began before
the Public Utilities Commission at the
District Building today.
The commissions value of the
property as of December 81, last, was
s1S,139,165. This figure is arrived at
by taking the original valuation of
s6,7S3,9S2 found by the commission
in 1916, and adding net additions to
plant since that time at actual cost.
The company is contending in the
present case, however, that all of its
property must be revalaed as of to-
day before the reasona bleness of ex
listing rates can be passed on.
New Evidence to Come.
Up to noon today the testimony
had revolved entirely around the
increase in value that has occurred
in the real estate owned by the COM
pany and total figures had not been
reached 1t was learned from officials
of the company, however. that evi-
dence to be submitted later would
show the company's estimate of
present-day value to be close to
SIS, ,O0o, 900.
At the opening of the hearing Do
zier De Vane, counsel for the COM
pany, outlined in a general way the
company's plan to submit evidence :
to the change that has taken place in
values since the original valuation
of the commission was announced in
1916.
Mr.. De Vane said the company
would endeavor to show that a val
uation begun in 1914, with net addi-
tions since that time added, is not a
fair value today.
Clayton Objects to Trend.
William NICK Clayton, counsel for
the Federation of Citizens Associa-
tions, pointed out that the hearing
had been called to consider the rea-
sonableness of the rates charged by
the company, but that it was spread
| ing out into valuation proceeding.
Mr.. Clayton argued that valuation
proceeding should not be woven into
| a rate case.
Engineer Commissioner Bell ex-
planned that the commission would
consider the company's claim that it's
valuation should be revised, and that
if revision of value should be found
necessary the commission would pro-
ceed in a lawful manner.
The company's first witness was
]. Dallas Grady, real estate man, who
said he was a member of a commit
tee of the Washington Real Estate
Board which recently appraised all of
the land of the telephone company, al
the company's request.
Explains Appraisal.
Mr.. Grady submitted a report show
ing the increases he believed have
taken place in the values of the
| various properties owned by the
company and explained how he ar
rived at the appraisements.
Mr.. Clayton questioned the witness
suited the assessed values placed on
the telephone properties by the Dis
trict assessor, but Mr.. Grady insisted
that he never took the assessors
estimate of value into account in de-
termining what is the market value
of land.
Mr.. Grady testified that he had the
greatest respect for the District as
SCISSOR, but that he thought real estate
broker who keeps abreast of the market
knows what piece of property will
bring.
Col Bell requested counsel for the
company to present arguments later on
two questions First, why the values of
the District assessor should not be con-
sidered; second, why land not used in
the telephone service should not be ex-
cluded from the valuation.
Indications were that all Of today's
session would be taken up with testi-
mony as to the valuation.