Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-25
UTILITY ATTORNEY
ATTACKS PROPERTY
OF POWER HEARING
No Complaint on Present
2 Rate Structure Is Basis
for Contention.
COMMISSION OVERRULES
MOTION FOR DISMISSAL
Consent Decree of 1925 Is
Held Up by Bowen
as Perpetual.

Lawyers had a field day at the morn
ing session of the hearing before the
Public Utilities Commission on the
question of changing the method OF
making rates Cor the Potomac Electric
Power Co. Practically the entire morn
ing was given over to an attack by S.
Russell Bowen, the company's lawyer,
on the propriety of holding such a
hearing at all, and to counter attacks
by William w. Bride and w. A. Rob-
erts for the commission and people's
Counsel Richmond B. Keech.
The hearing is to consider tie slid
ing scale embraced in a consent decree
OF District Supreme C3urt, effective
January l, 1925, and possible changes
Of it to achieve reduced rates.
Moves to Dismiss.
At the outset OF the case Mr.. Bowen
fled an answer and motion to dismiss.
He said that gross business of the cor
pora ton for the first four months of
1881 showed an increase OF $43,lo8 10
over the same months in 1880, whereas
the 1880 months had showed a gain
Of $2l3, 357.06 over the corresponding
months in 1929. Also, net operating
revenues for the first four months OF
this year show a decrease of $50, 488 81
over the same months in 1880, which in
turn had shown an increase of $751;
356.7l over the 1929 months.
Arguing from this, he said that II any
change Is to be made in the agree
ment, this is not an suspicious time to
begin it. No complaint has been made,
he said, that rates are unreasonable or
discriminatory. He added that the
consent sgre ement is the only basis of
regulating the company's rates; that
there Is nothing before the commission
that would justify the present inquiry;
that the proceedings amount to an at
tempt to inpsach the decree, and that
the decree is binding until reversed by
a superior court.
Mr.. Bowen also contended that the
proceedings sought TO be undertaken
amount to an attempt TO infiict a wrong
under the gutse OF regulation.
Quotes Utility Act.
Peoples Counsel Keech pointed out
that the act creating the Public Utilities
Commission, which authorizes the COM
mission TO set up sliding scales for rate
regulation, expressly reserves to the
commission the right and power to
in rates. charges and regulations as the
commission may ascertain, and deter
mine to be necessary and reasonable,
Notwithstanding any such arrangement
and mutual agreement"
Mr.. Bowen contended that this power
simply reserved to the commission the
right TO set up the new rates from
year to year as is now done under the
decree
He insisted that the commission, I'M
der the authority of the act, had en-
tered into a contract with the COM
pany, on the strength OF which the
company had parted with over So, 900, :
900 to consumers OF electricity, and
that the commission had no power to
escape from this contract.
Commissioner Harleigh H. Hartman
asked Mr.. Bowen II there was not many
decisions In the United States Supreme
Court to the effect that a legislature
or municipality or commission exercis-
ing legislative functions cannot barter
away its rights under the general L,olice
power. which includes the power TO
regulate rates. Mr. Bowen and Mr..
Hartman spared on this question for
nearly half an hour.
Motion OverruIed.
Shortly before the luncheon recess the
commission overruled Mr.. Bowers mo-
ton as far as it concerned disrnissinr
the proceedings, but let his answer
stand
Byers NICK. Bachman, chief account
ant Tor the commission. was then called
as witness and introduced a blueprint
showing increases in gross revenues, net
operating income and sales of electric
1ty during the period beginning January
/. 1925. and ending March 81, 1881. In
1881, however, the figures for the first
three months showed decreases in some
cases under the corresponding figures
for 1880
Gross revenues in January show a de-
cline from 1855 900 to 1852 900; in Feb
Iuary, from 1920 900 to 1895. 900; in
March, an increase from 1854, 900 to
SS9Z,00O. Net operating income In Janu-
airy shows decrease from $497, 900 TO
S468 900; in February, from 1904 900 to
S446,OOO, and in March an increase
from $425, 900 to s435, 900.
Argue Over Decree.
Another argument occurred over
Bowens claim that the act of 1925 set
ting up new commission, made the
consent decree perpetual because of a
section stating that the act shall not be
construed to invalidate any subpoena,
valuation or order issued by the COM
mission prior to the date on which the
commissioners first appointed under the
new act take Office
Mr.. Roberts and Mr.. Keech both con-
tended that this operated simply as
saving clause" to prevent confusion
through having to start law suits in
which the commission was involved
again in the names Of the new COM
missioners. II 1t had the effect that
Mr.. Bowen claimed. they argued, then
every act taken by the commission prev
ious to the passage of this act in 1925
would be frozen. and incapable Of