The Washington times., 1919-10-18


tail by the engineer Of the company,
G. S. Kimball: It consists OF his pro
gram OF expenditures for repairs and
improvements TO the tracks and road
beds OF the four companies. This esti.
mate contains several large items Of
replacement work. a large part Of the
cost OF which IS clearly 'chargeable to
depreciation reserve or to capital and
in no wise to be considered in ascer-
tanning normal maintenance allow
ances.
Inasmuch as the companies have
included in their estimates Of eXpen-
ditures separate items for depFecia-
tion based upon the rates prescribed
BY the commission in its order number
$50, in the matter Of the valuation OF
the properties OF these companies, Il Is
obvious that the inclusion IN the main
tenance account Of any amounts that
are properly chargeable to deprecia-
ton or to capital would be a duplica-
tion.
BASED upon an analysis Of these
items the commission Is Of the opin-
10 nthat the amount set up for
maintenance OF way and structures
should be at least $4,000 less thaH
that submitted by the petitioners.
The second item to which the
commission takes, exception is tho
proportion Of the charge Of S22O,000
applicable to operations in the Dis
trict OF Colombia, representing the
amount by which the Washington
Railway and Electric Company fails
TO pay its equitable share Of the
cost Of generating current at the
BenninE power plant of the Potomac
Electric p0wvar Counanr
Although the commission called
the attention of the company to this
matter when Il issued it's order re-
iucing the rates of the Potomac
Electric Power Company in July,
.l917, the Washington Railway and
Electric Company has failed to
change fits apportiOnment Of the en-
tire cost OF generating current at
the Benning plant in the manner
indicated by the commission. This
IS a claim for an item OF expense
which has not been incurred and 10
therefore dlsallowed.
The Washington Railway and Elec-
trio Company receives a rental from
certain OF fits cars employed on the
lines OF the City and Suburban
Railway Of Washington, the George
town and Tennallytown Railway
Company, and the Washington-In-
teruTban Railroad Company. A d.
vision Of this revenue IS made on
the books OF the washington Rail-
way and Electric Company as be-
tween operations IA the District Of
Columbia and operations in Mary
land, such division being determined
by the extent to which these cars.
are used by the lessee companies In
those two jurisdictions. The full
value Of these cars Is included in the
c commissions findings of fair value OF
the property Of the Washington Rail-
way and Electric Company, upon
which Il Is permitted to earn q re-
turn. regardless Of whether the lessee
company Is using the cars in the
District Of Columbia or in Maryland.
II seems proper that the entire rev.
snue derived from this source should
[ e credited to operations in the Dis
.rict OF Columbia. The commission
has accordingly increased the figures
lubmitted by the companies for this
item by the amount Of $500.
Demands on Companies
For Higher. Wages.
Demands have been made upon the
by two bodies Of their en-
plOyes for increased wages, one for
wages Of 90 cents per hour for con-
ductOFs and mOtOrfnen and Increases
for all other employees; the other for
Increases 20 go cents per hOuF fiat.
The existing agreement between the
Washington Railway and Electric
Company land its subsidiarics) and
ts employees provides for the reopen
ing Of the wage question on October
|, 1919, for such adjustments as may
be warranted by changes in living
conditions that have taken place !
since the decision Of the War Labor
Board in the spring of 1919. In the
Judgment Of the companies an in
,rease OF 3 cents per hour viii compen-
iate for the increased living costs
hat have taken place in the last six
months. A similar increase was re-
,ently granted by the Capital Traction |
to its employees.
A full compliance with the award OF /
he War Labor Board requires that
some increase in wages Of street rail- |
way employees be made at this time, |
Jut the extent Of such increase is I
iinicult to ascertain. IN the absence |
If information. to the contrary, the |
commission accepts the Judgment Of |
he officials Of the Capital Traction 1
and-the washington Rail- |
way and Electric Company that an |
in Wages Of 8 cents per hour |
s fairly comparable to the increase !
n the cost Of living since March, 1913, I
ind isS therefore, Just alike to the |
employees and to. the travelling public /
lpOn whom the added burden must 1
ie. II is estimated that this. increase
n wages will add S165,OOO a year to /
he operating expenses OF the petit
toner's.
Based on
LetuRI Operations.
The companies financial statements
re based on actual operations for
even months, during five months OF
which there was no charge for trans
ers, and on estimates for the remain
ng five months Of the year, assuming
continuation Of present rates OF
are. II allowance be made for the
outlined above and II Il
"a assumed that the companies had
objected a charge Of cents for
ransfeTs during the first five months
Z actual operations, the companies
7ould fall short Of earning a g per
ent return namely S977,7 on the /,
air value OF the property as fixed by
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