Evening star., 1926-10-09
MCCOY CR|T|C|zES
PHONE ECUTPEnT|0N
Plea by Utilities Body Not
Backed by Detailed Fig
ures, Justice Asserts.

Chief Justice Walter |. Mrt'UV of
the District supreme Court today crit'
icized the members Of the Public | til
tiles Commission for failing To present
facts and figures in support of tie
application for IL Modification of the
Injunction secured 10y the ChcSapca he
and Potomac Telephone Co. to halt Il
rate cut The court said ID was un-
fair to the public To arouse their hopes
of n reduction without giving the facts
and figures and il was unfair 70 the
court to subject 1t tn the criticism of
denying what was made TO appear &c
he beneficial to the public without the
court being taken into the confidence
of the commission and have its rea
sons explained to the court.
The commission in its application
had stated the public would lose $40,
600 a week by reason of delay i'll fur
ther hearings in reference to rate
changes. and Attorney George +.
Hoover. for the telephone company
declared the statement ''ridiculous and
absurd" He pointed out that re
duction OF % cents Il month ordered
by the commission affected the com
panv to the extent of $4,000 anC
meant much To the company. but lit
tie to the individual subscriber. The
he was not considering the reduction
on the basis of its effect on the in
dividual. but rather from the total fig
ure to be saved the public.
Hearing Is Continued.
The court continued the hearing and
granted Corporation Counsel stephens
an opportunity to amend the petition
so as to advise the court as 10 the
facts and figures which caused the
commission to reach the conclusion
that the circumstances surrounding
the business of the company require
a reconsideration of the rates.
Mr.. Stephens had argued that If
rates are to be changed in the inter
est of the public the commission must
have hearings now on the matter. Nc
court he pointed out could make q
reduction in rates retroactive and il
the change is not made the public :
interest is irretrievably damaged. lie
claimed there is no money taken from
the company and that the fund or
dered set aside by the injunction
pending final settlement Is merely a
matter of bookkeeping, but If the
public does not now get the benefit
Of a possible reduction it has sustain
ed a distinct loss He pointed out
that in the Potomac Electric Power
Co. case there had been three modifica
tions Of the injunction. one at the re
quest of the company and two on mo
tions from the Public Utility Com
mission.
Hoover Ridicules Claim.
Attorney Hoover insisted there was
no rea son shown in the application fOl
the modification and nothing to show
that the conditions had in any manner
changed since the valuation of the
cOmpany'S property. which is under
consideration by the chief justice. The
petition had set forth a reduction OF
$40 900 in the opera ting expenses OF
the company, but Mr.. Hoover pointed
out that operating expenses are $4,000.
0O0 annually. and saving OF $4,000
amounts only to three-fifths Of l pei
cent.
In the Pepco case. he pointed out
the conditions were different by rea
son of the wartime cost of labor
and materials and justified an appli
cation for modification. This change
however. was not made until after
Justice Gould had rendered his deci
sion on the valuation and the deci-
sion In the telephone case has not
been made Hoover ridiculed the
claim that the public will lost so,
900 a week. He showed this wOul3
mean $520.000 year and would call
for a reduction Of rate of more than
1850 as reduction Of 25 cents meant
only a saving of $4,000 to the public
Chief Justice Mccoy then asked
the corporation counsel to show him
how the public would lose 10000 a
week and also requested the detailed
statement OF facts and figures.