immediately available for making valuations required by law, and continued available during the fiscal year 1915. The following is a statement of the expenditures from this appropriation during the calendar year 1914 and includes obligations for contingent expenses incurred but not paid prior to January 1, 1915: GENERAL COUNSEL. C. H. SYME. During the year opinions have been rendered as to the power of the commission to change the standard of the quality of gas furnished by the local gas companies from that fixed by Congress under the act of June 23, 1874; as to whether The Capital Traction Co. had the right to charge the cost of the initial construction of the pavement between its tracks and for a space of 2 feet beyond the outer rails thereof to its capital account, and whether the requirement in the charter of this company and the acts amendatory thereof imposed said cost as a condition to the enjoyment of the franchises and rights granted thereby; as to whether the flat-rate service by the Chesapeake & Potomac Telephone Co. and the acceptance by the subscriber and payment by the latter of the amount set forth in such flat-rate contract constitutes discrimination within the meaning of the law creating the Public Utilities Commission; as to the validity of the deed of the Washington Utilities Co. to the Washington-Virginia Railway Co., and as to the validity of the charter of the latter company; whether under existing law the Washington, Baltimore & Annapolis Railroad Co. was authorized to enter the District of Columbia; as to the jurisdiction of the Public Utilities Commission over the Chesapeake & Ohio Canal Co.; as to the procedure in prosecuting the illegal use of transfers of the railways of the District of Columbia; as to the legality of the action of the Washington Gas Light Co. in furnishing gas to consumers outside the boundaries of the District of Columbia; as to the right of the Washington & Maryland Railway Co. to install overhead construction on certain streets; as to the right of the Public Utilities Commission to prohibit the Metropolitan Coach Co. from changing a portion of its route; as to the legal duty of the taxicab companies to carry any persons applying to them for transportation; as to whether the District of Columbia is exempt from the provision of the public utilities law forbidding discriminatory rates; as to the right of the gaslight companies to sell gaslight fixtures, etc.; as to the legality of the Potomac Electric Power Co. furnishing electric current to certain subscribers under certain special contracts; as to whether or not several public utilities operating in the District of Columbia possessed sufficient charter rights; as to withdrawal of certain service by the Metropolitan Coach Co.; as to the power of the commission with reference to the issue of certain bonds of the Washington & Old Dominion Railway. Early in the year 1914 the commission having decided that the taxicab companies were common carriers and within its jurisdiction as such, bills in equity were filed by the Terminal Taxicab Co. and the Federal Taxicab Co. to restrain the Public Utilities Commission from exercising jurisdiction over them. These causes came on to be heard in the Supreme Court of the District of Columbia before Mr. Justice Stafford, holding an equity court, and after full hearing the court decided that the commission had jurisdiction over these companies and dismissed the bills of complaint. An appeal has been taken to the court of appeals by the Terminal Taxicab Co. During the year the general counsel has been in constant consultation with members of the commission on matters which were not made the subject of formal opinion and in attendance at all public hearings of the commission. There appear in Appendix D the opinions of the general counsel rendered during the year. VALUATION BUREAU. E. W. BEMIS, Director. This bureau is engaged upon the work of determining, first, the actual or so-called historical cost of used and useful property; second, the cost of reproduction thereof; and third, the accrued depreciation therefrom with respect to the following utilities: Washington Railway & Electric Co. City & Suburban Railway of Washington. Potomac Electric Power Co. Chesapeake & Potomac Telephone Co. The determination of actual costs is largely a matter of expert accounting in accordance with economic principles, and involves a detailed examination and analysis of the books, records, and documents of the companies. The determination of cost of reproduction and accrued depreciation are principally matters of engineering and economics, involving detailed inventories of the physical properties, careful consideration of physical, topographical, and economic conditions, methods of construction, prices of commodities and labor, etc., obtaining at the time of and governing the actual construction of the properties, and such as logically would obtain and govern in the case of a hypothetical reproduction thereof. Preliminary work was started on May 1 and the actual detailed work was begun on the 1st of June. At the outset, the properties of The Capital Traction Co. and Washington Railway & Electric Co. only were investigated, with the intention of adding other utilities as the work progressed and the bureau organization and system became perfected. The properties of two subsidiary companies of the Washington Railway & Electric Co., namely, City & Suburban Railway of Washington, and Georgetown & Tennallytown Railway Co., and the distribution system only of Washington Gas Light Co. were included in the investigation beginning August 1. At the outset it was expected that the utility companies would submit to the commission inventories of their properties for examination, investigation, and evaluation, in accordance with the act, which provides that "Whenever required by the commission, e ery public utility shall deliver to the commission any or all maps, profiles, contracts, reports of engineers, and all documents, books, accounts, papers, and records, or copies of any or all of the same, with a complete in entory of all its property, in such form as the commission may direct." Considerable time was consumed at the outset in the endeavor to secure such inventories and data from the companies, and in obtaining definite statements from them relative to the matter. Each com 93342°-15-2 17 pany, however, claimed that it had no inventory and the laborious work of compiling direct from field inspection detailed inventories of all the properties was then undertaken by this bureau, involving an expense much higher than would have been incurred had proper company inventories been forthcoming. The organization of the bureau was divided into two sections conforming to the two valuations to be ascertained, namely, an accounting section, under the supervision of Andrew Sangster, chief accountant, primarily for determination of actual or historical cost, and an engineering section, under the supervision of Charles L. Pillsbury, chief engineer, primarily for the determination of physical inventories, reproduction cost, and accrued depreciation. The accounting section consisted on December 31 of the chief accountant, one senior accountant in charge, two accountants in charge (of two respective investigations), six assistant accountants, and one stenographer. The engineering section consisted on December 31 of nine departments, each with a department engineer in charge, all under the direction of the chief engineer. These departments are as follows: Track and roadway department.-Engineer in charge, one office engineer, one special work engineer, three assistant engineers, one draftsman, and six helpers. Buildings and structures department.-Engineer in charge, one engineer in charge of field parties, four assistant engineers, four helpers, one draftsman, and two computers. Power plant equipment department.-Engineer in charge and three assistant engineers. Rolling-stock department.-Engineer in charge, two assistant engineers, and two helpers. Electrical distribution department.-Engineer in charge, one office engineer, five assistant engineers and inspectors, one draftsman, and eight helpers and computers. Gas-distribution department.-Engineer in charge, one assistant engineer, and one assistant Cost-analysis department.—Engineer in charge and three assistant engineers. Clerical department.-Head clerk, three stenographers and typists, one clerk, and one photostat operator. Three departments are to be added later, as the work of some of the present departments is more nearly completed, namely, gas plant, telephone exchange, telephone distribution, and general and statistical departments, respectively. The work of both the engineering and accounting sections has been well systematized and has progressed very evenly and harmoniously. It is apparent, however, that the work can not be completed within the prescribed limit of time and funds, and recommendation has been made for an additional appropriation. The work involves more time and cost than originally contemplated, because of— 1. Lack of inventories. 2. Lack of comprehensive records. 3. Unusual construction. 4. Attitude of certain utilities. 1. Lack of inventories has already been commented on. |