Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-12-11
PUBLIC MAY LEARN
TRACTION SECRETS
Speculation as to Whether
Open Hearings Will
Be Held.
END OF THE INQUIRY
CAME AS A SURPRISE
Col. Harding's Report to Full Utili-
ties Board May Not Be Made
for Two Weeks.

ton of the affairs of the Washington
Railway and Electric Company, following
the close yesterday of the commissions 8
informal and secret inspection of the com
pany's books.
AT the beginning Of the inquiry repre-
sentatives of the utilities board indicate.
that should they discover conditions
which they believed required the atten-
ton of the full board the informal ses-
sions would be dispensed with and a
formal probe inaugurated
Fair Play to Company.
This was considered the only fair course
to pursue, inasmuch as to expose the
railway corporations records to public
inspection before it was definitely. as
certained that there were grounds for
an investigation would be an Injustice to
the company.
In view of the exhaustive research for
possible irregularities In the manage
ment of the company's affairs, which the
commissions representatives planned to
make, the termination Of the preliminary
probe yesterday, after only eight secret
hearings had been held in the office of
Col Harding. chairman Of the commits
sion. came as surprise to many.
Whether this fact may be taken as an
Indication that the utilities board officials
are convinced the company needs no FUR
ther investigating, or they have discov-
cred situation respecting its financial
status which they believe should be
brought Immediately to the attention
OF the full board. is a question that is
puzzling those who have followed close
iy the progress of the inquiry thus far.
Decline to Discuss Case.
Col Harding and the other representa-
tives of the utilities board. including Con-
rad Syme, corporation counsel: Capt.
Julian L. Schley. executive officer, and
J. G. Williams, statistician. decline to
discuss the case. Six hundred typewrit-
ten pages of sworn testimony given by
officials OF the railway company during
the closed-doOr proceedings will be re-
viewed by Col. Harding and his asao-
ciates prior to the framing OF report
Tor presentation to the full commission
1t Is probable that the report will not
be completed under q week. and two
weeks or more may elapse before the
commission makes known what further
steps, il any, 1t proposes to take In the
matter.
The informal inquiry was instituted be-
cause of the desire of the commission to
learn whether there was sufficient justi-
fication for the declaring by the company
recently Of an extra dividend of l per
cent on Its common stock.
At the beginning of the star chamber
sessions officials of the traction line were
notified that they would be expected to
submit to the commission the books show
ing the minutes of the directors meeting
at which the decision was reached to de-
clare the extra dividend: records showing
earnings credited to surplus and the in
come of the company from the period of
its organization to June 20. 1913; the in
come derived from transportation and
the separate income derived from divi-
dends on stock Of the Potomac Electric
Power Company, a subsidiary corpora
ton.
Complete Showing Ordered.
Also the company was ordered to pre-
sent the records showing how the Original.
stocks and bonds were issued and into
whose hands they went and the books
showing the actual valuation placed by
the company upon its physical property
and the depreciation reserve set aside
each year for the maintenance of the
corporation and its various subsidiary
companies.
These instructions were complied with
by the street railway heads, who had
the books, records and other papers of
building on each of the eight days hear
ings were held. The documents We're
returned each evening to the office of
the company.
When asked today as to whether the
testimony taken during the inquiry COW
cred all the points set forth In the list
of information desired by the commits
sion. Col. Harding said it was thought
that enough evidence had been submitted
to cover the points at issue, but that,
in the event additional information Is re-
quired. the company officials have agreed
again to appear before the commissions
representatives.