Evening star., 1926-09-23
u. S. ASSA|LS ORDER
ON PEPCO REFUND
Holds District Supreme Court
and Public Utilities Counsel
Exceeded Rights.

Attacking the authority of the Dis
trict Supreme Court for a decree fix
ing the valuation of the Potomac
Electric Power Co., which authorized
the return of half of an impounded
fund to the consumers. Maj. Peyton
Gordon United States attorney, toda Y
moved in the District Supreme Court
to intervene In the controversy be-
tween the Potomac Electric Power
Co. and the Public Utilities Commits
sion.
Acting by direction Of the Attorney
General of the United States, Maj.
Gordon is seeking the United States
Government share of the fund which
the court allowed the Potomac Electric
Power Co. to retain.
In his petition, Maj Gordon says
that both the compromise agreement
between the attorneys for the Public
Utilities Commission and the attor-
neys for the Potomac Electric Power
Co. and the decree of the court ap-
proving the same are void in so far
as they purport to affect the moneys
of the United States in g. cause in
which it was not named as party
litigant and not represented by coun-
sci.
Holds Powers Exceeded.
He says that the attorney for the
Public Utilities Commission had no
authority to represent the United
States in any manner whatever af-
fecting the moneys of the United
States. as "he had no authority to
49,
decree affecting the right" of the
United States to recover from the
Potomac Electric Power Co. any sum
paid 1t in excess of the lawful rates
fixed by the Public Utilities Commits
sion.
The petition asks the court to va
cate the decree of December 20, 1924,
approving the compromise, in SO far as
it affects the rights of the United
States to recover from the Potomac
Electric Power Co. all sums paid 1t
by the Government during the period
from August /, 1917, to December 81,
1924, in excess of the lawful rate.
Court Should Have Decided.
Mai. Gordon in his petition tells the
court that, the Potomac Electric Pow
er Co having raised the issue as to
whether the rate of 812 cents was
reasonable. it was the duty of the
court to have decided what was fair
arid reasonable rate on the valuation
fixed for the property used and useful
In the public service during the period
involved, whether such decision might
have resulted either in an increase
or decrease in the rate OF S12 cents
! which had been fixed by the Public
Utilities Commission.
An agreement having been entered
| into and a decree passed whereby
| the value of the property used and
| useful in the public service was fixed
at $32 SOC, 900 and the amount OF re-
| turn the Potomac Electric Power Co.
| was entitled to receive upon said val
| uation was fixed at not more than
| 7ia per cent return. 1t was "a simple
matter of mathematical computation
| to determine what were the fair and
reasonable rates to be charged during
the period in question.
, "The Potomac Electric Power Co.
having admitted that under such set
Elements the rate could not have been
in excess of 7H cents per kilowatt
hour. the United States is not only en-
| titled to a return of it's full proper
| tionate amount impounded but also to
an additional sum not yet determined,
| as uIlueT no tISoiS vi law VI idCl
could the lawful rate prior to Janu-
| ary /. 1925, have been greater than
| the rate subsequent thereto"
! The Government contends that 1t
| has coming to it out Of the fund re-
| tanned by the power company approx
mately 100000. Mai. Gordon tells
| the court that the Government has
received under protest $45, 900.
| The matter win come up for hearing
! tomorrow at the same time that the
petition of E. w. Davis Is heard. Mr..
] Davis is seeking s39 out of the fund
which the court authorized the power
| company to retain as a result of the
compromise.