Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-01-03
Peoples Counsel and Citi-
zens' Representative Block
ed at Public Hearing.
LARGE HIDDEN PROFITS
FROM RESALE ALLEGED
Contestants Argue Traction Com
pany, Pepco Owners, Must Be Con.
sidered in Fixing Power Rates.

Continuing his campaign for a fur
Their reduction of the 1891 electric
rates, Peoples Counsel Richmond B
Keech today called on the Public
Utilities Commission for information
showing the annual profits of the
Washington Railway 81 Electric Co
through the resale Of power generated
in the plant of the Potomac Electric
Power Co.
Keech and william NICK. Clayton
chairman of the Public Utilities Com
mittee of the Federation of Citizens
Associations, made an attempt to ge
these data in the record of the public
hearing Tuesday ON the electric rat
consent decree, but were blocked b!
rulings of the commission. Both argueC
that the resale of power by the stree
railway company which owns the poWeI
company constituted hidden profit To-
the latter which. should be used in thu
determination of power rates. Thes'
So-called hidden profits are said II
amount to 100000 year.
Cites Accountants Testimony.
I'm the course Of the hearing or
Tuesday, December 80, $780," Keech
wrote the commission, your chief &C.
cour1tant, in response to certain QueS-
lions, stated that the files of the COM
mission contained data showing the
amount realized by the washington
Railway g. Electric Co. for power sold
to number of other railroads or rau-
ways, including the Washington, Bal
timore & Annapolis, Washington &
minion, and possibly others. In con-
nection with any attempt further tC
reduce the rates 1t is, in my opinion
necessary that the negotiating bodies
as well as myself, be in possession Of
facts showing the amount actually re-
ceived by the Washington Railway &
Electric Co. from these respective CON-
panies, and, likewise, the profits realized
thereon by the Washington Railway &
Electric Co.
"For this reason would appreciate
it If you would have your accounting
department, at the earliest practicable
date, supply me with information
showing the amount Of power delivered
to the foregoing companies by the
Washington Railway & Electric Co.
the revenues received by that company
and the profit thereon for the years
1880, 1929, 1928, 1927, 1926 and 1925
at least.
Asks Question Be Answered.
"In the course Of the proceeding Mr.
Commissioner Hartman propounded
question to counsel for the Potomac
Eectric Power Co. as to whether Of
not there was any ALLEGATION Of the rate
based between the Potomac Electric
Power Co. and the Washington Railwa!
& Electric Co. in so far as the Bennin(
plant is concerned. II the commission
Is in possession Of any answer to TIL
inquiry, I would like to be advised. L
not, then 1t seems highly proper thai
the commission should formally Request
that the company respond to this ques'
ton. This is of Importance in connec'
ton with the matter set forth In thu
first paragraph Of this communication
ITO an inquiry as to whether or MOI
it was possible to allocate the propertie:
of the power company located IN Mary
land and those In the District OF Co
lunbia, Mr.. Ham of the power com
pany stated that there had been no al
location, and to accomplish it would TAKE
about three months. It has occurred
to me that it is possible that the com
mission has itself made such an allo'
cation. If so, would like to be ap'
prised as to what your investigation
diScloses.
SHOULD it be impossible for you
promptly to supply any of the tnforma'
ton requested, then would appreciate
1t If you would let me have such as i
readily available at this time rather
than to hold it until you are able Il
respond to all of the questions put"
Definite Steps Denied.
In repy to Keech's earlier request Il
be completely advised of the commits
sion's anticipated action in seeking
modification of the consent decree sC
as to reduce the rate of return of tht
power company, the commission tolc
him that it has not yet taken any def
mite steps.
"As yet, no formal instructions have
been given to counsel" the commission
advised Keech. THE matter has beer
briefly and broadly discussed. The COM
mission has asked counsel to advise just
what can be done or should be done.
Keech said he hopes to convince the
commission either by argument or court
Interpretation that it has the authority
to modify the consent decree without
going to court.