Evening star., 1950-12-01
Final Briefs Ordered
In Pepoo Rate Fight
As Hearings Adjourn

Attorneys in the Potomac
Electric Power Co. rate case
today had until December % to
submit their final briefs to the
Public Utilities Commission.
Chairman James H. Flanagan
of the PUG yesterday afternoon
adjourned the public hearing on
Pepco's quest for $3,379,000 in
additional annual revenue, after
sessions which have built up a
transcript of more than 1000 pages
since August 81.
Harvey Draws Fire.
p A sharp exchange developed
when Robert E. Harvey, special
assistant to the controller for
the Capital Transit Co.. called for
an investigation by the PUG of
some statistics supplied by the
power company.
He said that, for three months
before October, 1850. Pepco's con-
struction bills Jagged increasingly
behind the company's estimates
But in October, he said, the trend
was reversed sharply, and con-
struction costs rose above esti-
mates.
Mr.. Harvey said he thought such
a sharp reversal of trend should
be investigated. This drew i'm
mediate objection from Cornelius
Means, Pepco attorney.
During the discussion, Daryal
Myse, Capital Transit attorney
expressed the view that "such q
reversal which takes place while
this rate hearing is in progress
should be explained as a matter
of good accounting"
Calls Accusation "Serious."
Mr.. Flanagan, who had labeled
Mr.. Harvey's statement as a very
serious accusation, took the mat
ter under advisement and then
said the commission would accel-
crate its routine scrutiny of the
October report.
He pointed out that the COM
mission staff examines items of
this sort in the regular audit.
Earlier, Mr.. Harvey was accused
by Assistant Corporation Counsel
Lloyd B. Harrison, attached to
the PUG, of deliberately delaying
the hearing.
Mr.. Harvey presented calcula-
tions Wednesday that would in
dicate Pepco was entitled to nc
rate increase at all. Mr.. Means
cross-examined him closely yes
terday.
Calls Witness "Evasive."
The witness answers drew a
sudden burst of anger from Mr.
Flanagan.
II think this witness is getting
very evasive." Mr.. Flanagan told
Mr.. Myse and F. G. Await, another
transit company attorney. AS the
lawyers rose to their feet to pro-
test. the chairman continued:
eve have spent several days
which could have been condensed
into less than one day in trying
to get satisfactory answers out OF
the witness. He has been evading
and has been confusing his an
swers so that now nobody knows
the meaning of these exhibits"
Capital transit attorneys pro-
tested that Mr.. Harvey's question
ers had been asking improper
questions, which could not be
answered without qualification
and explanation.
If Pepco's request should be
granted as presented, Capital
Transit stands to have it's own
rates increased by So per cent.
The transit company is fighting
the boost.
Mr.. Flanagan announced that,
if the PUG decided Pepco was en-
titled to an increase, it would
determine the amount and in
struct the power company to file
proposed rate schedules to fit. An
other hearing then would be held
on the schedules.
PUG Accountant v. A. McEl-
fresh has testified he believes an
additional $2.5 million a year
would be enough to keep the
power company in sound financial
condition