Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-01-07
COMMISSION KNEW
193OWOULDDE BEST
YEAR FOR ?. {. P. CO.
Chairman Patrick Explains
HesitanCy Toward Chang
ing Consent Decree.
REPLY GIVEN TO KEECH'S
REQUEST ON EARNINGS
Peoples Counsel Had Sought Data
on Power Sold Through
Traction Company.


The Public Utilities Commission was
aware as the monthly reports Of the
Potomac Electric Power Co. came IN
that 1880 probably would be the COM
pany's most prosperous year, Gen. Mason
M. Patrick, chairman of the commits
sion, stated In q letter sent yesterday
to Peoples Counsel Richmond B. Keech.
This was the reason for its hesitancy in
making any move to modify the consent
decree, move which has since been
undertaken. The reason, as stated in
the letter, was that any premature move
by the commission would have inn
perilede the going into effect of much
lower rates, such as are now in effect,
based ON the company's 1880 profits.
1T became evident monthly Gen.
Patrick wrote, that If. in spite Of the
business depression. the power COM
panys business held up, 1890 would be
its most prosperous year. and that II
rates were adjusted as In the past the
reduction would be greater than ever
before. Any premature move by the
commission would have periled the go
ing into effect of such much lower
rates. This the commission wanted TO
avoid, and proposed to follow precedents
III Ilxlu8 the new rates.
Accountant win Assist.
The letter was in reply to q demand
from MIR. Keech for figures with which
to arm himself for the coming legal
battle for still lower rates, which Mr..
Keech contended should have been put
into effect this month, instead Of the
rates adopted by the commission. As TO
figures showing the amount Of elec-
tricity sold by the washington Railway
& Electric Co. during the years of the
operation OF the consent decree Of
Equity Court, under which the rates
are annually adjusted, the commission
had not the amounts tabulated, but In
formed Mr.. Keech that he could get
them from the files of the commission
and that its chief accountant, b. M.
Bachman, would assist him In getting
the figures from the records.
It Is Mr.. Keech's contention that
profits from such sales should be cred
tied to the Potomac Electric Power co.
instead Of to the railway company, and
II this were done q greater reduction
would have been available
The power company allows the WASH
ingtOn Railway & Electric Co. to manu-
facture power in its Benring plant, some
OF which Is sold at profit to the Wash
ngton, Baltimore a. Annapolis Rail-
washington Railway and other lines.
One of Mr.. Keech's questions was
whether there was any ALLEGATION be-
tween the railway and the power COM
pany as to the value of that part Of the
power company's plant used by the rail-
way.
The commission replied to this that
there was no such ALLEGATION, as the
entire property is included in . single
mgure stated in the consent decree a.
the value Of the power company's entire
property, and It Is impossible TO segre-
gate the amount allocated to the Ben.
ming plant.
Has Only Approximation.
Neither had the commission any
answer on the figure included in the
Potomac Electric Power Co.'s valuation
which represents property In Maryland.
It has only IAN approximation of their
value and has not felt justified in re-
curing the expenditure which would be
necessary to secure detailed alloca.
ton" Gen. Patrick wrote.
As to the latter two questions Mr..
Keeeh contends that an amount rep
the value Of the portion Of
The power plant used by the railway
eompaty and also the power coYnpanyR
property outside Of the District Of Co
lumbia should be subtracted from the
power Co1npany's rate base, the result
Of both Of which would be TO leave
more money available for reduction Of
rates.
Mr.. Keech today secured copies Of the
opinion of Justice Jennings Bailey Of
District Supreme Court IN which the
decree regulating manufacture
Of foodstuffs by certain packers was
modified and also certain other papers
IN the case to be prepared to &fgue the
general proposition that consent de-
creeS may be modified.
John NJ. Nicholson, Mr.. Keech's re-
search assistant, began She work Of
from the commissions filss
5he figures on resale of power by the
railway company today. He Is doing
This jointly with Mr.. Bachnlan, the
commissions chief accountant.