The Washington times., 1929-05-22

the law Of the land in valuations Of railroads repro
ductOn at present day prices That at any rate must
be the principal element entering into valuations
The decision confirms former decisions Of that in rail-
road and public utilities questions and will continue to bind
the of the District Of Columbia in future valuations Of
local public utilities.
So far Of the public utilities Of Washington
concerned their valuations long established upon
the reproduction basis by the local courts.
The first valuations made by the Public Utilities Commits
sion of the District after its creation by Congress about
fifteen years ago. upon the basis Of normal values %
mating the inflated values beginning with the Appeals
District Supreme Court and the District Court Of Ap
peas brought reversal Of the normal values theory and
close following Of prior opinions Of the United States
Supreme Court
Senator Blaine Wisconsin held up legislation for merging
the street railways and bus lines of Washington because he
desired and still desires inject into this legislation his
theories Of prudent investment the basis Of District vaua
tions
Even Senator Blaine succeed in doing this which
absolutely impossible prudent investment would
accepted by the local courts in the face Of the Supreme
Courts attitude.
We are to have more valuation proceedings before the
Public Utilities Commission The gas companies are
ing reyaluatons their properties within power
the Commission to revaue street railway other properties
If so disposed.
Unless Supreme should reverse its position
Public Utilities Commission follow that court in local
valuations there law which requires the Commits
sion to allow FANCY VALUES useless machinery
apparatus
The spot in the Public Utilities Commission in the
past has been just that thing Because lack Of funds
make competent and thorough Investigations Of absurd claims
public utilities and because Of lack Of experts and
torneys fully present the interests Of the public the public
utilities here particularly the railways have obtained
judicial sanction for fictitious values that simply out
rageous.
Fair valuations made the reproduction basis burden
enough the public which must pay reasonable
turns thereon but PADDED VALUES gossy speculative and
unfair, should have no place in coming valuations.
The local courts will not Intentionally uphold bluesly
values but the courts not in position 60 into al claims
in detail The judges must rely upon the evidence and the
records If the public is badly weakly represented
are poorly combated before the commission, the courts
naturally follow the records submitted.
The cOuntry's railroads and public utilities reap huge
advantages and financial benefits from the reproduction
theory The public must pay initiation, but what viii
happen these great corporations when prices drop decidedly
when periods Of depression come and there is revaaOn
depressed prices7
That dangerous feature Of the reproduction basis Rail
roads and public utilities in clover valuations fixed
presentday costs If inflated prices fall to something like
those Of prewar days. will the railroads and public utilities
want to uphold the reproduction theory which will mean
immense decreases in valuations?