Evening star., 1934-04-11
SUPPLY BILL REDUCING ESTIMATES REPORTED
H|CHPHONER RATES
HIT IN CONGRESS
Threat to Build Public Power
Plant Also Made at
Hearings.

ncdI llIySs
Sharp congressional attacks on high
telephone rates in the District. and a
threat to build a municipality owned
power plant here marked the hear
ings before the Appropriations Com
mittee, the details of which are re-
leased for publication today.
Representatives Cannon and Blan.
ton, in the course of long examina-
tions OF Riley E. Elgen, a member of
the Public Utilities Commission, and
William A. Roberts, its special coun-
sci. not only attacked the telephone
rates and the commissions inability
to get them reduced, but were sharply
critical Of a stipulation entered by
Mr.. Roberts in the telephone rate
case in District Supreme Court.
The stipulation fixed the cost Of re-
production of the company's property
at $31 ,014,000. After the case reached
court Mr.. Roberts contended that this
lawyers for the company insisted that
1t did not, and sought to tack on an
additional $4,000, 900 on this account.
Declared Separate Element.
At the end of a long wrangle Mr..
Cannon said: "Such a stipulation
should definitely determine whether
or not the going concern value Is
included"
Mr.. Roberts: THAT is a separate
element"
Mr. Cannon: "You concede that in
addition to this, they might then
bring in also as basis for the estab-
lishment Of their rates, $4,000, 900
additional for going concern value?"
Mr.. Roberts: They can bring it in
because the courts say they can; there
Is no way can stop them"
Mr.. Cannon: THE stipulation could
have included that so that you would
know definitely"
Mr.. Roberts: 'T will agree that it
could if they would only stipulate;
they will not do it. They are too
| smart"
$35,000,00 Cost of Plant.
In the discussion Of municipal own
ership of power plant, Mr.. Cannon
developed that an expert retained at
public expense to investigate power
conditions here had estimated that it
would take s35 100000 to build a pub
licly owned plant. The valuation fig
ure on which the Potomac Electric
Power Co. is allowed to earn a fair
return is s62,oO0,o 900.
Commenting on that he said:
In other words, they are charging
about twice what would be charged
II a plant could be constructed at
the figure which an investigation in
stituted by this committee determined
Is the correct figure?
Mr.. Elgen: THAT is quite true, II It
were possible to produce a plant here
for s35 .O00, 600"
Later Mr.. Elgen said: I'VE would
like to get lesser rates, of course, and
we are reducing them yearly. This
question has concerned me quite a
little, as to whether it would be prac-
tical to throw this consent decree in
the discard and get into a battle of
valuation. OF course. those things
you can win and you can lose. II
you lose, it would be just too bad"
Mr.. Cannon: "Yes: If we lose it
would be just too bad. We would
build our own plant, that is what We
would do, and they know that"
Rates to Be Reduced.
Elgen estimated that for 1894 the
electric rates would be reduced about
or mills under the present
system Of rate fixing. He said that
he considered telephone rates "at
least" 10 per cent too high, and at
tackled the Interstate Commerce Com
missions methods of regulating de-
probation accounting of which the
telephone company is now trying to
take advantage in District Supreme
Court.
He cast doubt on the thought that
the dial system of telephoning saves
money, and intimated that instead,
because of the large extra investment
required, it is probably not as eco
nomical as the manual system.
On the street car passes, he said
the commission estimated that the
average rider used a pass 20 times in
a week, which gave him scent ride.
He said the company estimated its
use at % rides per week. giving an
even cheaper ride.
Taxi Meters Not Pressed.
The commission, he said, was not
pressing for the immediate installa-
ton of meters in taxicabs. although
they were in favor of it. When asked
| If the commission would order the
installation If Congress were to re-
move the legislative rider from the
appropriation act which now ties the
commissions hands, Mr.. Elgen re-
| Piled
well, my thought about this entire
agitation about meters has been this,
that without doubt that was the way 90
measure service; that was the way to
render service scientifically; that is
the way 1t Is done everywhere in the
United States. 1 recognize much Of
the truth of Mr.. Blanton's conten-
ton about this question: that is,
during these times Of depression and
times when the people are out Of
work, many people who could pick
up a little money or even II they could
get an expectation of picking up o
little money, or If they actually could
make a little something, that under
those circumstances we should not
take those opportunities away from
them"