Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-01-25
BLAINE VAL UATION
PROPOSAL DELAYS
MERGER DECISION
CONTINUED From First Page.)

N0OheAAuCd CAOuL ClISt FdAc.J
the committee should have the merger
resolution printed, showing the amend
mentS that have been made by the SUBJ
committee, and then have a public
hearing to get the views Of the local
citizens on those changes and also on
his ame ndment.
Holds Public Protected.
Senator Copeland, Democrat, of New
York asked Senator Blaine IF 1t
wouldn't be wise to try to convert the
committee f1rst?"
Senator Vandenberg interrupted to
say that he thought the subcommittee
had done everything It could to protect
the public interest and that he did not
think the impression should be made
that the rights Of the public had not
been considered. Senator Vandenberg
said he believed the public's interest
had been safeguarded from the outset
by the employment as adviser to the
committee Of DR.. Maltbie, who, he said.
was most predetermined expert.
Senator Blaine told the committee
that some OF the local citizens believed
that the Potomac Electric Power Co.
should be included In the merger Of the
street railway lines and indicated that
this was one Of the questions he thought
local citizens should be invited to pre-
sent to the committee before 1t acts.
Chairman Capper announced, follow
ing adjournment. that the meeting of
the committee tomorrow morning would
be public.
When the committee met this morn
ing Senator Blaine made public for the
AVAS. tIxA - NJ
amendment which led to all of the dis
cussion at the meeting.
Provision Inserted.
1t seeks to amend the public utilities
law by inserting the following pro-
vision:
That the commission shall value the
property. actually used and useful for
the convenience of the public, of every
public utility within the District of CO.
1umbia.
Each such valuation shall be based
upon the amount of the prudent invest
ment either actually made in such
property, or with 1t would have been
necessary to make to build up such
property by reasonable methods and at
reasonable cost during the period of
actual construction.
For the purpose Of determining the
amount OF the prudent investment in
the property of any public utility, the
commission shall ascertain the original
cost OF such property to the date OF
determination, except that II such orig
inal cost Is not to be ascertained from
reliable records or II the prudence of
the investment In the property of any
public utility 10 doubtful the commits
cdr Hnl f<ss H. "a =
termining the amount of such prudent
from its investigation Of the property
and accounts of the public utility and
of other public utilities"
Revision Of valuat ton.
Then follows q section directing the
commission to keep itself informed of
all expenses and improvements In order
to keep the value up to date. It pro-
videS that net additions and better
ments shall be valued on the basis Of
the amount of the additional invest
ment. prudently made. It would require
the commission. from time to time, to
revise its valuation.
The valuations determined In the
foregoing manner would form the basis
for rate-making purposes. and the valu-
ationS so made would have to be re-
ported to Congress In the annual report
Of the commission.
Blaine Amendment.
The Blaine amendment would further
amend the utilities law as follows:
I'm the exercise of its power to deter
mine and fix just and reasonable rates,
tolls, charges and schedules for any
public utility. the commission shall de-
termine upon and fix such rates. tolls.
charges and schedules as will reimburse
the public utility for the reasonable cost
of the service furnished. The reason
able cost Of the service furnished shall
be the amount necessary mo. ID for
reasonable operating expenses, includ-
ing taxes and adequate provision for
maintenance. operation and obsoles-