The Washington herald., 1913-11-13
RAILWAY INQUIRY
TO BE THOROUGH
CONTINUED FROM PAGE ONE.

Washington Railway and Electric
Company for power furnished. and
what income the Potomac Electric
Power Company has received from the
District CT Columbia or private con-
sufhers. either for light or power, dur
ing the year ended June 80, 1913.
Records to show of what the surplus
claimed for the Washington Railway
and Electric Company consists, and
how II came into existence.
Records TO show the actual valua-
ton placed by the Washington Rail-
way and Electric Company on its
property each year since 1902, and the
basis for those figures; also the same
Company and those companies which
are operated by the Washington Rail-
way and Electric Cmpany as part OF
the system not included in the ANAL
gamation Of lSe, but are known as o
subsidiary companies.
Financial balances showing the in
come derived from each company
comprising the Washington Railway
and ELECTRIC Company and It's sub
salaries and the expenses of mainte-
nance charged of on each Of those
companies.
A statement Of the depreciation re-
tenance OF the Washington Railway
and Electric Company and the sub
sidiary companies
TranSfer System Expense.
A statement of the expense involved
IN the system Of reciprocal transfers
between the subsidiary companies and
the number Of passengers carried on
transfers for each year since 1902
Records showing how the original
stocks and bonds of the Washington
Railway and Electric Company were
issued; in what amounts, and how
much actually was paid for common
and preferred stock, together with the
names fhnGa fr,.n
they passed.
The stock books of the Columbia
and Metropolitan companies and rec
ores TO show what the stock holders
IN these companies received when the
Washington Railway and Electric
Company took over the properties
In addition TO Attorney Darlington, the
railway company was represented by
President Clarence P. King, Treasures
W. F. Ham, and Secretary S. R. Bowen
Immediately on opening the informal
hearing, Col. Harding, who presided, read
10 the railway officials the report on the
investigation made by John G. Williams
the substance OF which has been printed
IN The Washington Herald exclusively.
Col Harding demanded the minutes Of
the last directors meeting, which had
been denied Mr.. Williams during the lat
ter's investigation. After some sparring,
Secretary Bowen told the Commissioner
that the typewriter transcript Of the
notes had been taken to New York BY
Assistant Secretary William l. Clarke.
Secrecy Is Demanded.
Before giving the board the original
notes, the company, through Mr.. Darling
ton, notified the board that unless the
records called for were withheld from
the press and public. and used only for
the Information OF the Commissioners.
The company would refuse to give them
up. He declared that otherwise no tech
nlcal objection would be raised
In executive session the board decided
that II would be expecient and wise to
have the examination OF the books of
the company made by experts working
under the direction OF one member OF the
board. Accordingly, the demand of the
company for secrecy was complied with,
and the officials were asked to meet Col.
Harding Monday morning at IO:SO o'clock.
The first object of investigation will be
the surplus fund claimed by the COM
pany, and which was severely arraigned
by Mr.. Williams
In statement to the board, President
King yesterday declared that the aIlega-
lions IN the Williams report were the re-
suit OF a misunderstanding, supposedly
of the bookkeeping methods employed by
he company. Referring to the criticism
of The so-called depreciation reserve sus-
oense fund, Mr.. King said:
Renewal Suspense Accofnt.
This fund that you lay so much stress
IN We call the renewal suspense account
.or depreciation or. in our case, for ap-
'reciaton, because We are putting into
I all the time more than is necessary
.or the upkeep Of the road and more
han other companies do.
I'VE are putting about $4,000 a month
n improvements all over the city. We
;laim that We maintain a larger appre-
'iation account than any other company
n the city. The renewal suspense fund
provides for the upkeep of the property,
md that, as We understand II, is the
recount contemplated in the utilities act
where it demands "a proper and adequate
iepreciation account
THE American Audit Company spent
even weeks going over our books last
ear, and at the end eomplimented us on
'ur superior system of bookkeeping"