Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-10-18
SEVEN-CENT SINGLE FARE;
FOUR TICKETS FOR Is CENTS


| is now carried mostly on the lines OF
the Capital Traction Company AL
| though not specifically referred to in
| the hearings in this case. other in.
| stances have been brought to the at.
| tention of the commission where q
considerable amount of dead car
mileage now operated can be reduced
! through rerouting.
| These matters are important and
will receive early and careful con-
sideration.
| "On September 4. 1919. the com.
mission announced the fair value OF
the property of three of the petit.
TONERS as Of June 80. 1919. used and
nseful Tor electric railway operation
In the District Of Columbia to be as
follows: Washington Railway and
Electric Company. $12.777,547.63: City
| and Suburban Railway Of Washing
Ton. s2S46.s13.52: Georgetown and
1852; total. 316.106.36S.14.
Washington-I nterurban Value.
ITO this amount should be added the
/ fair value of the Washineton-Interu
pan Railroad Company. The commits
SION has not found the fair value Of
the property of this company in the
manner contemplated by law. but has
announced a tentative valuation of
i $4,000 in its order number 176. dated
February 10. 1915. In connection with
the companys application for an issue
OF stocks and bonds.
Making allowance for the nronar
portion of working capital appiica Bile
10 the operations of the company
Wlthin the District Of Columbia. for
ADDITIONS to capital accounts since
February 10. 1916. and for any other
elements OF value not included in the
100000 stated above. the commission
includes $4,000 as the fair value to
pc given the property of the Wash
ngton-1nterurban Railroad COMPANY
Tor the purposes of this case.
"A further addition to the fair value
or inc property of the washington
railway and Electric COMPANY should
De made for the extension of its tracks
on 18th street between Pennsylvania
avenue and H street northwest which
was constructed at the Instance Of the
united States Housing Corporation
curing the winter OF 1888 and was
completed about April Is, 1919. While
tne exact cost of this extension has
not yet been entered on the books of
the company. the testimony shows the
amount to be approximately s1272I0
and that the title to the tracks Is in
the company. Adding the assumed
fair value of the on-Inter-
urban Railroad Company and the cost
OF the 18th street extension to the
.otai lair value Of $16.10S.a6s.14 as
57S:i4 as base on which the return
TO the petitioners Is to be calculated.
Rate. Of Return.
The companies have submitted the
testimony of financial experts to show
that per cent is the minimum rate
OF return they should be permitted to
earn on the fair value Of their prop
cry. over and above operating ex-
penses and taxes.
The commission adheres to the
opinion 1t has expressed heretofore
that until conditions created by the
world war become more normal rates
Iorservice which will yield a return
OF per cent are reasonable and in
no sense confiscatory
Ihere are two Items in the tables
showing the actual and estimated
revenues and expenses of the COM
panies for>the calendar year 1919 to
ton.
The first Of these is the item for
which amounts to $6s4.302.s6 for the
TOUR companies, made I'D of actual
charges to maintenance account for
the first seven months Of 1919 and
estimated for the remaining Ave
in detail by the engineer.o of the COM
pany. Mr.. c. g. Kimbalf; 1t consists
OF his program Of expenditures for
repairs and improvements to the
tracks and roadbeds of the four COM
paniess This estimate contains sew
eral large items of replacement work
large part of the cost of which is
clearly chargeable to depreciation re-
serve or to capital and in nowise to
be considered in ascertainins normal
maintenance Allowances.
Inasmuch as the companies have
included in their estimates of ex-
penditures separate items for depre-
citation. based upon the rates pre-
scrtbed by the commission in its order
No. 1893, In the matter Of the valua-
nies. 1t Is obvious that the inclusion
IN the maintenance account of any
amounts that are properly chargeable
to depreciation or to capital would be
duplication. Based upon an analysis
Of these items the commission is Of
for maintenance of way. and struc-
lures should be at least $150. goo less
than that submitted by the petition-
ers.
Takes Exceptions to. Items.
THE second item to which the COM
mission takes exception is the pro-
portion of the charge Nof 5000 900 ap-
plicable to operations in the District
OF Columbia. representing the amount
by which the Washington Railway and
Electric Company fails to pay it's
equitable share Of the cost Of gen.
Grating current at the Benning power
plant of the Potomac Electric Power
Company. -
Although the commission called the
attention of the company to this mat
| ter when 1t issued its order reducing
| the rates of the Potomac Electric
Power Company in July. 1917, the
Washington Railway and Electric
Company has failed to change its ap-
portionment OF the entire cost of gen.
| Grating current at the Benning plant
J in the manner indicated by the COM
mission. - s'-- 80" -
This is a claim for an item Of ex-
pense which has not been incurred and
therefore disa1lowed.
Increase of $500.
| THE Washington Railway and Elec-
trio Company receives a rental from
certain Of it's cars employed on the
lines Of the City and Suburban rail-
way of Washington, the Georgetown
| and Tenleytown Railway Company
and the WashingtonInt erurban Rail
/ road Company. A division of this
! revenue is made on the books Of the
Washington Railway and Electric
Company as between operations In
1 tions in Maryland. such division being
l determined by the extent to which
! these cars are used by the lessee
/ companies in those two jurisdictfons