The Washington times., 1919-09-24

Having received Official notice from
the Public Utilities Commission that
Il would be expected 10 become a
party TO the street railroad hearings
sinaugurated BY the Washington Rail-
way and Electric Company. seeking
Increased revenues. the Capital TraC-
tion Company this morning appeared
before the commission in the persons
Of President Hamilton and Vice Presl-
dent Hanna
Mr. Hamilton called attention TO
the fact that the order from the
commission waived the statutory
ten days notice 50 az 10 admit the
company at once as party 70 the
proceedings TTr. Hamilton regarded
this vaiving Of a statutory provi-
sion as a serious matter, which
might be attacked In the courts and
said that while the company did not
object TO being brought into the
, proceedings. IL did object to being
required to do 50 IL expected to fur
nish witnesses and Information
yTfthout preparation. It had given
no thought or attention TO this sub
ject but was not prepared 70 meet
issues without warning or prepara-
tion.
Chafrman Kutz, OF the commission,
interrupted TO say that the commits
sion now gave the ten days notice
20 that the company might be pre-
pared 10 answer summons and give
Information
Attornev Barbour. for the w. p.
and E, said the first his company
knew OF this matter WIS in the -H----
papers. II had received no Official
NOTES However, its most seriO--s -
lection was TO the delay that would
be occasioned by the loss Of another
ten days IN obtaining the relief which
il needed beyond all question
Commissioner Kutz-''The commits
sion considers that a delay OF ten
days Sc less q disadvantage than the
exclusion from the hearings OF the
Capital Traction Company"
Attack 8 Per Cent Return.
Resuming testimony, Attorney Bar
bouf put upon the stand two local
Nbankers-EuEene Z. Thompson, Of
crane, Paris q Co., and John Poole,
president Of the Federal National
Bank-who testified in the strongest
manner that per cent return on a
street railway Is not in these days
sufficient 10 maintain proper credit
In their opinion s per cent was none
TOO much IL the company was 70 be
put in position to carry on financing
needed TO make improvements and 70
bankers gave the same sort Of testi-
mOny yesterday. This testimony is a
direct attack on the policy OF the
commission IN holding down the re-
turn OF local utilities TO g per cent on
valuations
Both witnesses told OF the view
point OF investors in railway secur-
tiles and Of the great difficulties pub
JIG utilities generally are experience
rr- 81
Of interest, As q general rule, these
witnesses declared utilities should be
permitted 10 earn returns approx
nitely double their interest charges.
In the case Of the ". r. and E., for
instance, this would call for a fare
OF not less than 10 cents in the Dis
trict and probably more.
Mr. Poole was the chairman OF the
Liberty Loen Committee OF the Dis
'trict which hoated the Districts
share Of the Liberty Loan issues,
and Mrs Thompson was SECRETARY.
The witnesses stated that in their
opinion that an s per cent return was
none too much was based upon gen
r~al conditions all over the country
80 asceFtained by them from investors
b,no sought bonds and securities Of all
kinds, and from their direct knowI-
edge OF the troubles utilities now
though they must sell these bonds
Tar below par 70 obtain money.
Need Over Million n.eYur.
II was brought out BY Commis-
gioner Gardiner that the W. r. and p
81 IN need Of more than 81 .OOO. 600 a
year for three or four years 70 come
% extend and improve it's roadbed.
rolling stock, etc, and that its pros
poets OF getting this Is almost hone
less with its earnings far below what
80 claims it should have under the
policies OF the commission. without
this money the properties Of the COM
pany viii depFeclate fast. The Wit
neBseE both indicated that this money
can probably not be Obtained al any
price unless the company IS permitted
sufficient earnings above its interest
charges 20 maintain margin OF