Evening star., 1919-02-26
HEARS EXPERT ON
v. R. &E. VALUES
Utilities Commission Resumes
CrosS-Examination of
Frank T. Nelson.
RECORDS ARE REQUESTED

cross exafni nation of Frank 7, Nell
son, expert employed first by Harold
Almert and later by the Washington
Railway and Electric Company TO
make a historical valuation OF the
properties of the system, was resumed
before the Public Utilities Commission
this afternoon
Mr.. Nelson was requested yesterday
by Conrad Syme. corporation counsel.
to produce before the Public Utilities
Commission today certain figures. rec
ords. etc, contained in old books, rec
ordS, reports and other papers of com
panies the properties OF which were
from time TO time acquired by the
present company and consolidated
into the Washington Railway and
Electric Company. These records. etc.
were not located by Andrew Sangster,
the expert engaged by the commission
to make a historical valuation OF tho
properties in question.
1t Is the desire of tho commission TO
complete the cross-examination OF Mr..
Nelson this afternoon. when. it is cx-
pected. argument will begin.
Valuations Vary Greatly.
Totals of the various valuations made
III behalf OF the Washington Railway
and Electric Company and the Public
Utilities Commission vary so greatly
that 1t Is not anticipated that in the
maj adjustment the figures submitted
by either set OF appraisers will be ac-
cepted, but rather that compromise
Detween the figures of tfe company and
the commission will be the basis for
arriving at proper valua tions
Harold Almert expert employed by
the company TO prepare a statement OF
tfe actual reproduction cost, new OF the
properties OF the Washington Railway
and Electric Company presented figures
totaling 29,sb62s3.62.
Figures prepared by Charles L. pills.
bury for the Public Utilities Commis.
sion and covering the same ground ss
that covered by Mir. Alnert totaieI
Sl2, TAG, 1867, divided as follows: Wash
ibgton Railway and Electric Cop,nauy
SIC, is5, ,3l7.S4: City and suburban a..
c20, IA. s3: Georgetown and Tenleytowii.
S292, ,67490
The difference between the yalua
ton arrived at by the company-s ex-
pert and Mr.. Pillsbury is S1e,ss0. 1866.
Mr.. Nelson's Figures
Mr.. Nelson, employed by Mr.. Almert
and later by the company to deter
mine the historic cost of the various
properties now consolidated in the
Washington Railway and Electric
Company. submitted figures of s2o.-
614,4S472
Andrew Sangster. employed by the
Public Utilities Commission to find
| the true historic cost of the same
properties, showed. as a proper total.
s10,376 S29.72. divided as follows:
Washington Railway and Electric
. Company, ss.53o.24o.o5: City and Sub
Tenleytown, $i9I. 40399
The difference between the figures
OF the companys expert and those of
Mr.. Sangster is sIo.237.s35.
Asked Regarding knowledge.
During the afternoon session yes
terday Corporation Counsel Syme in
terrogated Mr.. Nelson as to his ouali-
fications to testify as an expert in val
uation proceedings. The witness adj
| mitted that he had never qualified to
give expert testimony before any pub
lie service or public utilities commits
sion or other body with similar funr-
tions until he appeared before the
Public Utilities Commission of the Dis
trict of Columbia
Mr. Syme also elected from the wit
| ness that, although the statements OF
Andrew Sangster. the commission's
expert engaged in fixing the historical
value of the lines consolidated in tho
, Washington Railway and Electric
Company, to the effect that he (Mr.
Sangsterb had not been able to find
! many of the old books of former
street railway companies, were made
in direct testimony as long ago as
during 1916. the witness did not con
! slider 1T TO be any part of his duty to
| inform Mr.. Sangster where such books
could be found.
Whereabouts of Balance Sheets.
Balance sheets of some of these old
companies, Mr.. Nelson stated, were
made up by him from books of ac-
count, minute books reports to stock
| holders and other records found, COW
cred with inches of dust and cobwehs,
stored away in lofts. atties, old vaults
and similar places in the I1fh street
barns. the East Capitol street barns,
the ~ street barns and elsewhere
around the city. These balance
sheets purporting to show the condi-
ton of the companies, Mr.. Nelson said,
in fact showed only what he could get
out of these ancient records and docu-
ments, and were not. in the strict
sense of the word, accurate balance
sheets that would show the true con-
ditionS
Mr.. Nelson further stated, in re-
the original equipment or other prop
critics of these old roads ever was
written off, the direct inference drawn
from the witness reply being that div
ideDds still are being paid on the
long-dead mules that used to haul the
cars of some of these defunct street
railway companies. The witness stated
that it was not the practice of the
Washington Railway and Electric
Company, or of any other similar cor
poration, to write off the cost of any
original equipment.
Development Cost Explained.
development cost" it was brought
out during the afternoon session, ac-
cording to the witness, might properly
include any money expended in any
way in the development of the prop
critics or in the furtherance of street
railway projects. Under this inter-
probation it was proper to include In
development cost money spent in en-
tertaining congressman and others at
expensive banquets in bonuses of
stock, etc.
Questioned as TO items Of historical
cost which included franchise value
Mr. Nelson finally admitted that
Washington franchises were congress
sional grants and that such franchises.
as we'll as all easements in streets in
the District, cost the companies moth
ing at all, although they were carried
as intangible" items totaling large
in the witness historical
valuation figures.
READY FOR USE MARCH 1.
IT,, coyern uent RHildinps practi.