Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-07-28
Public Utilities Commission
in Session to Pass on
Petition of KeeCh.
PEOPLES COUNSEL ACTS
TO LOWER 1O-CENT FARE
Appeal From Court Decision Allow
ing Increase Also Contem-
plated by Official.

The petition of Peoples Counsel Rich
mond B. Keech for revaluation of the
two washington street car systems was
expected to be granted by the Public
Utilities Commission at a meeting be-
ginning at 2 o'clock this afternoon.
The petition was filed last Saturday
by Mr.. Keech as part of an attack on
the 10-cent street car fare recently in
stituted by order of the District Su-
preme Court. If he can succeed in re-
ducing sufficiently the valuations of the
two companies below the $44,o0O,0 900
figured named by the court, he will be
in a position to come to the commission
and ask for a reduction in the car fare.
At the same time he is preparing an
appeal to the District Court of APP
peals from the 10-cent fare order issued
by Justice Jennings Bailey on July 10.
Action Is Expected.
The commission is confidently ex-
pected to grant the petition and i'm
mediately set about the revaluation. A
motion for revaluation was made dur
ing the course of the hearings on the
10-cent street car fare petition before
the commission by William NICK.
Clayton, counsel for the Federation of
Citizens Associations TIE commission
did not act upon this motion, holding
that the company had not made out a
case and that it was not necessary to
proceed with the revaluation. Now that
the courts have held that the companies
did make out case it is fully expected
that the commission will test the maj
ter by granting Mr.. Keech'S petition.
Should the commission decide to re-
value it will be the first such proceeding
in the case of car company for IL
years. The Commissions existence be-
gan in 1918 and the following year
valuation proceedings started to deter
Owing to the intervention of the war
the valuations were not completed I'M
til 1919.
Both companies were dissatisfied with
the figures and announced appeals. The
Capital Traction Co., fought its case
through the Court of Appeals which an
nounced its value OF Approximately
Washington Railway g. Electric Co was
allowed to lanquish. 1t has never been
decided one way or the other.
frOccuure rs Outuneu.
II the valuation order is passed, the
first step will be an assessment against
the companies for the cost of making
the valuation. Under the law, this as
seSsment is amortized and charged to
operating expenses by the companies.
The money will be used to hire engi-
neers, accountants and a clerical staff.
Every piece of property of both COM
panies will be inspected and appraised.
Rates will be drawn up showing the de-
probation of the various items of prop
erty and tentative figure set for the
valuation.
Then will come public hearings, at
which the valuation force will read its
conclusions into the record and submit
itself to cross-examination by lawyers
for the company. The companies also
have the privilege of putting in any
evidence they care to to combat the
figures submitted by the commissions
experts. After that the commission Will
decide what the valuation shall be.
On the present valuations the COM
panies admittedly are earning less than
a reasonable" return. In the case OF
the Capital Traction Co., which is earn
ing less than per cent, 100000
would have to be subtracted from its
present value figure before its return
would begin to border on the return
reasonable" range above z per cent.
1t is doubtful if any such result as this
will be obtained but Mr.. Keechs posi-
ton is that the people, whom he repre-
sents, are entitled to certainty in the
matter of valuation of public utilities.
One of the backgrounds is expected
to be depreciation. In announcing its
value for the Washington Railway and
Electric Co., the commission stated that
a sum for depreciation had been de-
Quoted without stating what it was. Mr..
Keech specifically remarked in his petit
ton on the fact that much of the pres
ent property of the companies is obso-
lete and has passed its span Of useful
life.