Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-07-10
Government Studies Question
of Whether 1t Should Pay
for Cables.
FURTHER DATA ASKED
BY M'CARL IN STUDY
ACQUISITION of Potomac Electric Co.
Property Would Require Loca-
ton of New Stations.

The Governments efforts to pur-
chase the square of ground at Four
tenth and B streets, occupied by the
Potomac Electric Power Co., for use as
a new home for the Department of
Labor, have been highly complicated
by the question of whether the Govern
ment should pay for underground con-
struction of cables and conduirS, It
was disclosed today. AS result, pur-
chase of the site is held up.
The Treasury Department, explaining
to Controller General McCarl that ne
gotiations were under way, asked II
the same principles should be consld-
cred in a purchase as in condemna-
ton proceeding, especially regarding
the value of the conduit and cables.
McCarI Asks Further Data.
The question was left undecided by
Mr.. McCarl, who asked for further data
which will be submitted by the Treas
ury Department in another letter
shortly.
McCarls conclusion in the matter.
thus far, which Treasury Department
officials said would require another sub
mission by them, said: NO reason Is
apparent why in negotiating purchases
of property pursuant TO the appllcaple
law, the same element may not be given
consideration that would be proper Tor
consideration in connection with con-
demnation proceedings, but in your SUD-
mission there has not been given sui
ficient facts to permit determination
of what element in the particular
matter may be proper for conSldera-
ton"
The Treasury Department explained
to McCarl that Congress had author
lied $25,0OO,OO0 and appropriated of
this amount $12,000000 to buy land
in the triangle bounded by PennSyi-
vania avenue, B street, Third and FIJI
tenth streets.
The square on which the Potomac
Power Co. is located is bounded by
Thirteen-and- Half, Fourteenth, B
and c streets in the Federal triangle.
Some preliminary negotiations have
been had with the power company"
said the Treasury letter signed by
Secretary Mellon, for the acquisition
of the square and property located
thereon, and there enters into the
negotiations a factor which, in equity
to the power company should be con-
sidered in the purchase price to be for
the property, but as to which doubt
exists as to whether the present au-
thorization is sufficient permit OF con-
sideration.
when the Government causes the
vacation by the power company of
square 259 the Potomac Electric Power
Co. will be required to establish in other
parts of the city at least two sub
stations to take care of the power dis
a. No. "a
station located on square 259. One OF
these substations is to be located some
where in the downtown district and
the other somewhere in the northwest
section, probably as far out as FLORIDA
avenue. This will require a complete
revision of the distributing system OF
the power company and the abandon
ment of conduits carrying main feeders
and distributing systems as now located
in the triangle from such point where
the main feeders are diverted TO con-
meet with the new conduitS and cables
which must be laid through the city
streets.
Compensation Is Factor.
SHOULD the Government condemn
this property it would seem that there
would necessarily enter into the case
q fair recompense for the conduits and
the cables in the streets and outside
<he lot lines of the property to be ac-
CURED since such conduits and cables
are inherently necessary and valuable
of the power distributing system which
radiates from the power plants.
Your consideration and decision are
respectfully requested as to whether
in the acquisition of the property OF
the Potomac Electric Co. by private
purchase there may be taken into con-
sideration the same elements which
would be considered in condemnation
proceeding, namely the value of the
conduits and the cables which must
be abandoned incident to the removal
of the power company from the tri-
angle"
AS further factor in the situation 1t
was indicated that before the whole
matter may be settled the Department
of Justice may be asked to consider
whether the matter of underground
construction will be considered formally
in condemnation proceedings.
According to present indications, 1t
will be some time before legal and ac-
counting questions involved may be
cleared and the Government acquire the
site for the Government building.