Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-11-12
Inquiry Starts Monday.

by the public.
Inquiry Starts Monday.
The commission took the point under
consideration. and this afternoon an
nounced that the company's position
would be sustained Next Monday was
set as the time for the beginning Of
the inquiry proper. when the utilities
board, having before it complete his
tory of the corporations financial
transactions. will commence considera-
tion OF the propriety of the action of
the board of directors in declaring the
recent extra dividend.
The commission, which met this morn
ing in the office Of Engineer Commits
sioner Harding and got right down to
business, when Chairman Harding asked
the railway company heads to present
the minutes OF the October meeting of
the board of directors at which the de-
cision to declare the extra dividend was
reached
This request was met with . statement
by Clarence p. King. president of the
company. that the minutes have not vet
been approved. Col Harding then asked
that n copy Of the minutes which are
awaiting approval be submitted,
Record Is Sought
Secretary S. Il. Bowen telephoned the
office of the company and ascertained
that Assistant Secretary William l..
Clarke. who had prepared q typewritten
statement from the notes taken at the
meeting of the board of directors. was III
New York and that the statement was not
obtainabie. Not to be defeated In his
purpose to obtain some official account of
the directors meeting, Chairman Hard !
ing insisted that the original notes taken
by Secretary Bowen be produced These
We're sent for, but by the time they had
been received the commission had de
cided TO continue the hearing until
MondaS.
Transactions Defended
The principal features Of today's
hearing We're statements by President
King, defending the various financial
transactions of the company: Of Cor
poration Counsel Conrad H. Syme. out
lining what character Of information the
commission desires from the corpora
tion and J. J. Darlington. attorney for
the company, who presented the objec-
ton to having the books produced in
public
Mr.. Darlington questioned the legal
right OF the utilities body to require the
traction concern to produce its books IN
public for what he termed exploitation
by the newspapers He said he was
surprised 10 find that newspaper repre-
sentatives had been admitted to the
hearing this morning.
Commissioner SiddonS aScertained from
Attorney Darlington that the company
will produce whatever data il has that
the commission desires to inspect, pro-
vided they are examined in secret, and it
was motion of Commissioner SiddonS
that the hearing temporarily was ad-
journed while this point was passed on.
Sees Misunderstanding
That there has been some misuildcr
standing on tho part OF the commission in
connection with its questioning % the
propriety OF the action iii declaring tine
recent increased dividend. was the asscr-
ton OF President King, who made u
lengthy statement to the board
MIR. King stated that he thought there
was Il misunderstanding of the figures il
the report presented by j. q. Williams,
statistician of the commission. upon
which the boards decision to investigate
the company,s finances is based.
King Gives Explanation.
President King stated that the Wash
ington Railway and Electric Company
sets aside larger depreciation account
than any other utility corporation oper-
ating in this section. The extra dividend,
he declared made a total of 121e per cent
paid in dividends for the last three years.
or about 1 per cent year during that
period.
His statement referred to plans beina
made for the development OF the company
| In the future. one problem which must
| be considered early, ne said, was that Of
providing more electric power. He re-
ferred to the fact that the> Washington
Railway and Electric Company owns
rights along the Potomac river which
may be used in connection with power
| development operations.
Corporation Counsel Syme called upon
| the company to produce a large number
! OF papers, books and documents which
/ the commission desires To inspect.
In addition TO the original notes of the
meeting of the board Of directors re-
| lerred to, Mr.. Symc said that the COM
mission wants records to slow what
! q. rningS have been credited to surplus
and what IN" income of the Washington
I Railway and Electric Company was tor
/ the year ending June - last
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