The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1920-07-15
State Railroad Commission Calls
Witnesses For Pensacola EIec-
trio Co. and City
WILL FINISH TOMORROW
Indications Are Testimony Will
Be Completed In Time To Ad-
jOurn Friday Night

| Hearing in the case of the applica-
ton of J. G. Holtzclaw, receiver of the
| Pensacola Electric Co. for an increase
in railway fares in the city of Pensa-
cola began at the City hall yesterday.
| Chairman r. Hudson Burr and Newton
IC. Bitch are the only members of the
Railroad Commission present, Mr.. Dunn
being in Washington attending the
sessions of the Interstate Commerce
Commission.
Three witnesses for the electric com
pany were heard yesterday and it is
expected the company will close its
case today. The hearing is expected TO
last through TOMORROW.
In announcing the purpose of the
meeting. Chairman Burr said that
the commisson would make a thor
ough examination of the traction
company's affairs and would grant an
increase if it should be found that
the company was not making a fair
retur non its investment.
Chairman Burr referred to an al
legged interview published in the
Florida Metropolis of Jacksonville, in
which c. w. Hillman, accountant for
| the commission. was quoted as saying
that his figures were tallying exact
| ly with the figures of the company.
Chairman Burr said that he inves-
| tigated the interview and found that
no interview ever took place. A re-
porter saw Mr.. Hillman. Chairman
Burr said, and was told that he could
not grant an interview.
Chairman Burr said. We all know
that a reporter will grab anything"
L. T. TRAY, receiver Of the Jack
sonville Traction Co. spoke briefly,
corroborating Chairman Burr's state
ments in regard 10 the alleged inter
view.
The case was then opened by Peter
o. Knight, counsel for the Stone a.
Webster properties in Florida.
Mr.. knight said in his opening
statement:
81 contend that Jacksonville and
Pensacola properties-and. so far as
that is concerned. all public utility
properties-are to be valued for rate
making purposes, a tthe present time
at their present fai rvalue. In other
words, that the owners Of public util-
ity properties are entitled now 10 a
reasonable return upon the present
fair value Of such properties.
This has been decided over and
over again Dk Inc IEuGEdA GOAEAbs ana
the question being a constitutional
one, and the supreme court of the
United States having so held, it is
now the law of the land.
/ rea din a local paper of a report
by some committee Of the Chamber OF
Commerce thta the seven cent fare
had been approved. but made refer
ence to watered stock.
II am going TO show that this COM
pnay's earrings on its investment here
are not sufficient TO give a fair re-
turn"
Mr.. Knight asserted that no pub
lie utilities company can exist without
havgning public opinion with IT, Mr..
Knight quoted decisions Of various
courts and public utilities commits
sions which he held gave for authority
for the Railroad Commission to rule
that he electric company 81 entitled
to a fair return upon the present
value of the property.
Mr.. Knight insisted that the return
should be based. not on the develop
ment' cost of the property, but rather
on the going value of the property.
Mr.. Knight declared that the gross
earnings of the Pensacola Electric
Co. are not sufficient TO pay operating
tA ADSUSES. IluEH less give one penny
for earnings. indebtedness or depre-
citation.
c. A. Hahn.
c. a. Hahn. of Boston, engineer,
was called to testify as to the cost
Of replacing the plant. equipment,
etc, Of the Pensacola Electric Co He
identified exhibits of figures which he
had prepared.
Mr.. Hahn qualified as an expert
from his experience with the Texas
Oil Co. in actual construction work,
dSsignin gfor the City Of New York.
senior engineer for New York Bu-
reau of Standards. chief construction
engineer for American Shipbuilding
Co. of Philadelphia.
Mr.. Hahn sand he had made a com
plet appraisal OF the light and power
Of the Pensacola Elec-
trio Co. also an appraisal Of the
street railway department. The re-
suits Of his work ne said were abso-
luteiy correct, made after a physical
inventory of the company's property
had been taken.
Figures relating to cost Of con-
struction. Mr.. Hahn said. were based
on price Of material. wage scales,
methods of doing work, etc. prevail
Ing in Pensacola.
Mr.. Hahn stated in detail the meth
DDS he used to arrive al his conclu-