Evening star., 1944-03-02
Verbal Clashes
Mark Heariinq
On Pepco Rates
Witnesses -Foce.
Further Questioning
On Sliding Scale
BY CAMBRIDGE CRIST.

Attorneys for the Public Utilities
Commission, the Potomac Electric
Power Co. and the Procurement Di-
vision of the Treasury Department
will proceed with cross-examination
Of witnesses in the annual power
rate case when hearings continue
at 10 am. tomorrow.
The cross-examination will deal
with the first two points involved
in the hearings-whether the slid
ing scale should be abandoned and
whether the sliding scale should be
continued in its present form or
with modification of the basic ele-
ments of the existing arrangement" "
The third point at issue, what
modification should be made, will
come up next week, when the Pro-
curement Division plans to present
expert testimony in behalf Of "very
substantial" notifications Of the
scheme. Chairman James H. Flan-
agan. criticized Harry r. Booth,
special counsel for Procurement, for
not having his witnesses ready this
week, particularly since the order to
investigate the sliding scale was
handed down April 26 of last year.
Booth, Flanagan Clash.
Mr.. Booth said the PUG had a
right to withdraw its permission for
Procurement's intervention if the
commission did not wish to hear
them, whereupon Mr.. Flanagan de-
clared:
II resent these implications you
have been making upon our not
wishing to hear your testimony"
Another exchange took place in
the hearings when Gregory Hankin.
commission member, asked Alfred
G. Neal, PEPCO president, why his
company was not asking for a rate
increase when its own figures in
dicated 1t earned 100000 less last
year than was permitted under the
6 per cent rate of return set by the
commission.
Mr.. Neal replied the company did
not feel justified to ask for an in
crease with the 1943 rate case still
under advisement in District Court.
In that case PEPCO is contesting
the action of PUG in slashing 1943
rates by $4,000. Mr.. Neal pointed
out that if the company was sus-
tained higher rates would be re-
stored.
Neal Challenged:
when some one offers me $780,
600, 1 become suspicious" said Mr..
Hankin. He said that when util-
ity company does not ask for an
increase of rates when its own fig
ures indicate it is entitled to one
'it suggests you are getting money
In some other way And so would
suggest" Mr.. Hankin said to Mr..
Neal, "a more careful analysis be
made of these figures Company rev.
enue statistics)."
S. r. Bowen, attorney for PEPCO.
sought to bolster Mr.. Meals stand
by pointing out that if the commits
sion did grant an increase in rates
it would involve two issues now
pending in the District Court case
and the 1912 Washington Gas Light
Co. case before the Supreme Court.
He said the PUG could not be ex-
pected to change it's views on taxes
and depreciation-two issues in
volved in the courts-unless the
courts reversed the PUC's previous
decisions.
The afternoon session then begged
down in protracted wrangling over
whether the sliding-scale arrange
ments provided for an increase in
the gross or net revenue to meet
deficiency under per cent. Harry
R. Booth suggested that if it were
found necessary to raise the net
income to 6 per cent, then the gross
income for 1914 would have to be
raised approximately 81 5CO nm