Evening star., 1944-03-07
Federation Plea
In PepcoCase
Goes in Record
Citizens Support
Sliding Scale in
Rate Hearings
BY BAINBRIDGE CRIST.

A resolution of the Federation of
Citizens Associations, calling for re-
tentton Of the sliding-scale arrange
ment Of rate adjustments for the
Potomac Electric Power Co., was
admitted as an exhibit today in the
power rate hearings by the Public
Utilities Commission after Federal
attorneys criticized it as being with.
out facts.
John H. Connaughton, vice chair.
man Of the Federation's Public
Utilities Committee, was subjected
to almost one hours examination by
attorneys representing the Federal
works Agency and the Treasury
Procurement Division, both inter-
venors In the case.
Mr.. Connaughton testified the
resolution, which claimed accumu-
lated savings Of approximately
$4,000, 900 to power consumers
under the sliding scale since 1924,
was passed at meeting Saturday
night, with representatives of 81 out
OF 81 member associations present.
Hill Challenges Resolution.
When Thurman Hill, general
counsel Of the procurement division,
objected to the resolution on
grounds that it was "hearsay," Lloyd
B. Harrison, assistant corporation
counsel, said:
Irrespective of whether 1t Is eyi-
dence or not, representatives Of the
Federal Government should be in
terested In knowing what the people
who pay electric light bills think
about their rates."
After Harry r. Booth, Treasury
special counsel, began his critical
questioning of the resolution, Mr..
Harrison struck back with the re-
mark:
"The fact that you are suspicious
OF the resolution makes me think it
is all right"
Attorneys Clash.
Several times Mr.. Booth tried
to cut Mr.. Connaughton's answers
short, prompting Mr.. Harrison to
charge that 'it is evident that coun-
sci doesn't want your answers, Mr..
Connaughton, but wants to ask en-
barrassing questions. We've gone
far enough in fishing" added Mr..
Harrison.
While Mr.. Connaughton said he
had not discussed at Saturday
nights meeting earnings of Pepcol
under the sliding scale, nor the COM
pany's dividend rate, he insisted
again and again that the sliding
scale had brought about lower power
rates.
Federal attorneys were particu-
larly critical of the estimate that
only s. or 10 delegates out of total
OF ia were present when the reso-
luton was adopted. They tried to
bring out that q circular Of the Fed
Grafton to the member associations
on the sliding scale was prepared
by Mr.. Connaughton and was thus
one-sided in its presentation.
Connaughton Defends Action.
Mr.. Connaughton said it was no
more undemocratic for 65 DELEGATES
to pass resolution in an organiza-
VAIL ACPA<cCAA1AlAS tU,OUU members
than 1t was for majority of 40 Sen
ators to pass a law binding on $780,
600, 900 people.
Yesterday, Alfred G. Neal, presi-
dent OF Pepco, defended the slid
ing-scale arrangement for annual
rate adjustments while subjected
TO cross-examination by Alan John
stone, general counsel of the Fed
eral Works Agency, who seeks alb
rogation of the plan.
Mr.. Neal conceded that If the
company earned money in excess
OF the rate of return allowed by
the commission it was not required |
to return that excess amount in
the year 1t was earned, but to re-
duce its rates the following year.
When Mr.. Johnstone asked if elec-
trio power rates had not been re-
duced throughout the country as in |
the District, Mr.. Neal replied they
had been lowered elsewhere, but |
not to the degree here"