The Washington times., 1916-12-28
ham is UNDER FIRE
AT PEPCO HEARING
Vice President Holds His Own
In Tilt With Syme and
Commissioners.
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Power Company. charges were made
off the books for depreciation, but
that no such charge Is made In the
valuation accounts that have been
presented to the commission.
There was only one brief clash be-
tween the attorneys during the ex-
animation of Mr.. Ham, caused by the
wording OF a question presented by
Mr.. Syme to which Attorney ~ II,
Bowen, for the company, took excep-
ton. The wording was changed to
suit what Mr.. Syme referred to as
Mr.. Bowen's sensitive skim" nj.
though Mr.. Ham had not objected to
II, and so stated. -
"Deprecistfen- Up Again.
The elusive item OF depreciation"
said by some experts testffyinE for
the Potomac Electric Power Company
In the valuation hearings last week
not to exist at all. again figured in
today's testimony when w. F. Hap
returned to the stand.
Mr.. Ham submitted some tables deal.
ing with cost OF construction OF
the Potomac Electric Power Company
and the United states Electric Light
Company, bought by the Potomac
Company In 1902. In the figures OF
the United States Electric Company
no mentioned depreciation
81 am anxious to know" said Com
missioner Kutz, "why you include de
probation in your figures on the Uni.
ted States Electric Light Company. but
fail to mention any such item In con
nection with the Potomac Electric
Power Company"
Submits -Four Tables.
'T explained before" Mr.. Ham said,
"that this item was covered, so far as
the Potomac Company II concerned,
by increasing the items relating to
construction and cost OF the plant"
Mr.. Ham submitted four tables. as
supplementary exhibits to his pre-
.vlous testimony.
In one OF these Mr.. Ham had COM
puted the annual investment In con-
struction on which to calculate the
annual rate OF return as sss per cent
tie charged ti2.i3t,3H0i In the con-
struction account. and made the nEure
So. al, sass by including work In prog
ress. abandoned property and similar
Items. tn, table covered n period from
October. 1906. to June. 1915
Average Return STA Per Csst.
Another sheet stated the return on
construction and equipment adjusted to
be at nm annual rate Of 7G per cent.
A third table dealt with return Of
cost OF construction and equipment per
books" and fourth table contained
data on the cost OF construction OF the
United States Electric Light Company.
The average annual rate OF return on
this investment was set down AT sif
per cent.
Conrad syme. counsel for the utilities
commission. questioned Mr.. Ham about
the Washington Traction and Electric
Mr.. Ham SID he had mentioned that
the stock of this company had been
acquired by the Washington Railway
and Electric Company.
rxpiai.s orss.isssiss.
Don't you know thst. prior TO isca.
stocks OF various companies had been
acquired and transferred To the holding
company knowni"As the Washington
Railway and Electric Company" Mr..
Syme asked.
Mr.. Ham said tho Washington Trae.
ton and Electric Company had been
organized about January. 1899. ana
that "A New York firm had acted In
conjunction with local interests 20
organize it under Virginia laws.
Mr.. Syme then turned 10 questions
about the foreclosure OF this company
In the Virginia courts.
'In 1902 tho Washington Traction
and Electric Company defsuited the
interest on its bonds. The same
spring the enabling act OF the Wash
jngton Railway and Electric Company
was passed by Congress. From that
time on interests began reorganizing
the company. As an incident TO this
the Washington Traction and Electric
Company was Sold" Mr.. Ham said.
Questions As 10 Parchs.e.
Don't you know that the Washing.
ton and Great Falls Electric Railway
Company. now the Washington Rail-
way and Electric Railway Company.
was purchased by one gentleman for
the consideration OF tho total issue
OF the Washington Railway and Elec-
trio Company" Mr.. Syme continued.
Referring to copies OF contracts he
said he held In his hand Mr.. Syme
went on: Don't you know that the
manner in which the Washington
Railway and Electric Company be-
came owner OF the United States
Electric Light Company. with lO.9T6
shares at a par value OF 800, and the
entire stock OF the Potomac Electric
Power Company, with $500 shares OF
preferred stock and 1900 shares OF
common, was by virtue OF an agree
ment made January 81, 1902, by Sam
ueI Lawrence and the Great Falls and
Electric Hallway Company"
Mr.. Ham replied that he understood
the amount of stock acquired through
q he fSa