Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-27
final ARGUMENTS
ENLNEN HEARINGS
ONELECTR|CRATES
Attorney Bowen for Pepco
Speaks Hour and Three
Quarters.
REASONABLENESS HELD
NECESSARY TO DECIDE
Motion to Dismiss Is Overruled.
Peoples Counsel Assails
Consent Decree.

setting rates for electricity consumed
in Washington reached its last day to-
day when arguments by lawyers on
both sides were presented. The first
two days Of the hearing saw little eX-
cept arguments, but those were merely
preliminary skirmishes. Today's argu-
ments were official and final.
S. Russell Bowen, lawyer for the Po-
tomac Electric Power Co., started things
Off by an grafton which took one hour
and three-quarters to deliver. He started
with the proposition that it is impos-
sible to consider the case without con-
sidering the reasonablenesS of the rate
charged, which thus far has escaped
attack. The rates, he said, furnish the
company its return; it has no other
source of revenue.
Questioned of Reasona bleness.
There must be some finding that the
rates are unreasonable, he argued
Rates imposed which yield less than a
fair return on valuation are unreason-
able, but the converse of the proposition
is not true. The fact that a corporation
earns more than a fair return is not
evidence that the rates are unreason-
able. he declared.
To drive this proposition home Mr.
Bowen selected a case from the House
of Lords. in which it was held that the
rates charged by the International
Bridge Co. for its use by the Canada
Southern Railway were not unreason-
able solely because the bridge company
was able to pay dividend of Is per
cent. One of the reasons ascribed was
that the bridge was liable to be swept
away by a flood at any minute, taking
its capital investment with it.
Mr.. Bowen then produced a case
decided in 1876 in which an income of
$2,700 in one year from wharfage dues
on a wharf which was maintained at
the cost of $50 was held not unreason-
able. Mr.. Bowen insisted that the
price charged each customer for each
individual transaction by which the
consumer made purchase of electricity
must govern. So long as each indivi-
dual price is reasonable 1t makes no
diferNnce that the aggregate profit from
ali tae sales yields the corporation a
retuS8 over 10 per cent, as was found
by the commission, he claimed.
High Rate Undecided.
He said that the Supreme Court OF
the United States had never decided
how high a rate of return could be
earned by a public utility without a
rate being considered unreasonably
high; that all of the questions decided
as TO return had to do solely with the
dividing line between confiscation and
no confiscation.
Without the consent decree. which
Mr.. Bowen holds is binding on both
parties. the corporation would never
nave dared TO place its maximum rate
Tor domestic consumption as low as
Al cents per kilowatt hour, and even
under the protection of the decree the
company has been criticized by the
electrical industry for bringing its rates
so low, he said
After Mr.. Bowen concluded, the COM
mission overruled his motion to dismiss
and called on Peoples Counsel Rich
mond B. Keech for the next argument
Assistant Corporation Counsel William
A. Roberts will argue the case for the
commission this afternoon, and Mr.
Bowen will be given an opportunity to
reply.
Consent Decree Attacked
Mr.. Keech based his argument on
the theory that the right and power to
regulate rates was enc which the
commission could not give away by
means of a consent decree or other
wise
The consent decree itself. he pointed
out. says that it is based on paragraph
10 of the public utilities act which vests
in the commission the power to regu-
1dtC I6bS NEUTRALITY-SUSPICIOUS. dIAJ fC~iIId Cl
entered into with utility for the
institution of a sliding scale of rates,
or other financial device. II the COM
mission were to accept Mr.. Bower's ar
gliment, then, as to the power COM
pany, they would have no functions
left, and the only remaining regula-
ton could be accomplished by a staff
of clerks who would add up the COM
pany's earnings at the end OF yeae
and automatically calculate the rates
for the next year. To give the statute
such an absurd construction would
never be sanctioned by any court, he
said.
Clashes In Afternoon.
At yesterdays Afternoon session. a Bit
ter and prolonged series of clashes be-
tween opposing lawyers dragged the
hearing out almost interminably. All
Of the many objections lodged by AS
s!stant Corporation william A. Roberts
for the commission and Peoples Coun-
sci Richmond B. Keech, were sustained,
and the record was strewn with ex-
ceptions taken by Mr.. Bowen, for the
company.
The corporation was extremely anx-
ious to get into the record list Of
power rates in other cities, with which
Washington is said to compare very
favorably. This was ruled out. Then
Mr.. Bowen tried TO read into the record
excerpts from the testimony of Presi-
dent William F. Ham Of the company,
at the last public hearing on power
rates December 80. 1890. Since this
statement contained the list of power
rates referred to, this likewise was ruled
out. largely on the ground that Mr. Ham
vas present in person and could be call
ed TO testify If necessary.
Mr.. Ham on Stand.
Mr. Bowen finally put Mr. Ham on
the stand after a grueling argument
on the Law II evidence, especially as
administered by quasi-ludicial tri-
bunals such as the Public Utilities
Commission. judging from the decis-
ions Of the Supreme Court Of the
United States quoted by both sides, it
seemed 10 the lay spectator that that
august tribunal must have decided on
both sides of every possible point of
law on the subject
AS Mr. Ham seated himself in the
witness chair. Mr.. Bowen handed him
the extract from his previous testi-
mony This led Commissioner Har-
leigh II. Hartman to accuse Mr.. Bowen
CT showing disrespect for the tribunal
in trying to get the evidence in by i'm
proper means He cautioned the
company lawyer TO proceed lin an
orderly fashion"
Mr. Bowen then asked Mr.. Ham q
question and Mr.. Roberts was on his
feet objecting. Mr.. Bowen gave 1t up
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