Evening star., 1943-03-11
Disputes Mark
Reopening Of
PepcoH oHeariings
McEIfresh Questioned
At Greot Length by
Federal Attorneys
By DON S. WARREN.


5eCtS-many Of them ruled irrelevant
marked this mornings session OF
public hearings before the Public
Utilities Commission on rates of the
Potomac Electric Power Co The
hearings were resumed after counsel
for Federal intervenors had been
given a week in which to prepare
their case.
When a week of adjournment was
granted last Thursday, over obiec-
tions from counsel for the commits
sion and the company. it was under
stood attorneys for the OPA. the
director of economic stabilization
and the Treasury Procurement Di-
vision would be ready to present
their testimony this morning-ex-
cept for "a few questions" they
might want to ask the chief ac-
countant Of the PUG, V, A. Nc
ElfreSh.
The few questions" became quite
2 few when Mr McElfresh was re-
called to the stand at 10 am for
further cross s-eXamination. Harry
r. Booth, an OPA attorney, inquired
into methods followed by the ac-
countant in preparing his exhibits,
one Of which calls for a rate re-
duction of $4,000 and another a
reduction of S315,500, depending on
policy to be adopted by the PUG.
Shortly after noon, however, OPA
representatives presented the first
witness for Federal intervenors. He
was David A. Kosh. a rate analyst.
who offered calculations limiting tax
credits against operating expenses
to 10 per cent to show Pepco rates
might be reduced by S648,000.
Groups Back Sliding Scale.
The commission had received a
letter from the Washington Board
of Trade urging continuation of the
sliding-scale plan for annual adjust
ment of the company's rates, but this
was excluded from the record since
no spokesman for the board was
present to testify or be croSS-ex-
amined. Over tentative protests
from Thurman Hill, Treasury pro-
curement counsel, later Withdrawn,
the commission admitted a resolu-
ton adopted by the Federation of
Citizens Associations, asking con-
tlnuatiOn of the sliding scale plan
although voicing desire for a rate
reduction under it.
John H. Connaughton. an attorney
representing the Federation. took
the stand to testify the resolution
was one adopted last Saturday by
the body, by majority of the elected
delegates representing citizens
bodies having membership of be-
tween $1,000 and 10000
In the beginning, Mr.. Booth in
quired as to how MI McElfresh COM
puted tax figures included in his
and sought to compare such
calculations with those used in last
years gas rate case. This led to
much debate between counsel and
at one point Gregory Hankin. PUG
member, disagreed with
the method followed by Mr.. Booth
and sought to show how he could
present his inquiries.
Keech Statement Ruled Out.
Still later, sharp coloquies devel-
oped when Mr.. Booth and Mr.. Hill
sought to include in the record i
statement made by Richmond B.
Keech in 1880, when ne was serving
as peoples counsel before the COM
mission. They indicated this state
ment was contrary to the position
now taken by Mr.. keech. who is
corporation counsel and therefore
general counsel to the commission
Attempting to halt time beng de-
voted to argument-during which
various attorneys and commission
members at times were talking at
the same nomenclature H. Flan-
agan, the PUG chairman, ruled the
proposals out of order He said
what Mr. Keech may have said in
1880 was not relevant to the present
case.
Toward noon Mr.. Booth and Mr..
Hill asked that the record include
statements from PUG orders of some
years ago as well as the Pepco report
for January Of this year. The argu-
ment started all over again, with
Chairman Flanagan ruling the pres
ent case dealt with the company's
experience in the past calendar year.
Mr Hill then suggested that lawyers
for the commission, the company.
and the intervenors get together"
10 see if they could agree on what
portions Of historical records might
be incorporated in the record of the
current case, and it was indicated
such a conference might be held