The Washington herald., 1921-07-27
w. r. & E. Testifies 1t
Must Spend that
Amount.
PUBLIC MUST Pay
COMPANY STATES
Ham Says Bonds for
This Wouldn't
Sell.

year for the next five years was esti-
mated at the afternoon session of
the utilities hearings to be the
amount required by the Washing
ton Railway and Electric Company
for requirements.
1t was also announced by a Pub
lie Utilities Commission order, dated
yesterday. that the telephone rates
as fixed by the commission May 26,
1880. would be continued in effect
to February IS. 1922.
William F. fIam. testifying for
the Washington Railway and Elec-
trio Company, OF which he Is presi-
dent, emphasized the necessity OF
maintaining a depreciation fund.
in the case Of the Washington
Railway and Electric Company II
makes no difference whether 1t is
called a depreciation or a mainte-
nance fund" Ham explained, "as
long as the funds are available to
permit the necessary repairs to be
made to the tracks and structures"
Tracks, Life Uncertain.
A period of twenty-five years was
held to be the life of tracks, but the
element of uncertainty entered into
the case of Structures. The build
ings used as shops by the Washing
ton Railway and Electric Company
were. at the time Of their compile
tion. estimated to be of sufficient
capacity to answer the purposes of
the company for great many
years. 1t was explained. but the un-
expected extension of Q street,
which bisected this property, will
undoubtedly compel the company to
vacate taese buildings long before
1t would otherwise have been neces-
sary.
In defending the principle that the
depreciation expense be borne by
the car patrons. Ham said il would
De impossible to raise these funds
by bond Issue. :, .s---.-,......l-.--- =
~ Coulda't. he Sold.
No one would care to buy bonds
issued to allow repairs on tracks
of a street railway company" he
declared. and / do not believe that
any reputable bond house would
handls bonds of this character.
ITO operate successfully a trac-
tion company it is necessary, as
Osborn j. Yellott. our attorney, has
explained at previous hearings, to
have a steady flow of two streams
OF money coming into the treasury
OF the company. One stream is from
the car riders, part of which must
be used for repairs, requirements
and depreciation. The other stream
must come from the investor to be
used for the extension of lines and
new equipment"
Asked by Commissioner Kutz
whether the expense of cars had
been written Off on the books of
the company, Ham stated that it had
been done so in order to conform
to the ruling of the Interstate Com
merce Commission, which left no
choice in the matter.
Engineer Testihes.
Charles S. kimball. engineer for
the Washington Railway and Elec-
trio Company, who has been max
ing a survey of the company's prop
erty for the purpose of determining
its future requirements, testified
that expenditures for the next five
years were estimated at $500. 900
a year.
Another witness produced by the
Railway aud Electric
Company was James E. Emery, a
consulting engineer of New York,
who testified that depreciation was
not susceptible to exact estimation,
but that he believed the life of
tracks averaged between twenty
FIVE and thirty years.
At the close of the hearings the
companies requested the commits
sion to furnish them with a tenta-
tive order before a permanent order
Is issued.
Hanna Testines.
During the morning session John
H. Hanna, vice president and gen.
eral manager of the Capital Trac-
tion Company, testified that the av-
erage life of a streS-car rail was
twenty years, and that replacemeuts
we're now being made on the lines
Of the Capital Traction Company
because the rails laid twenty years
ago were not made to accommodate
the heavier type of car now in use.
Rates Of depreciation, Hanna told
the commission, could not be def
initely fixed for a long period, as
Il was a matter of guesswork ano
was Influenced in no small degree by
and new methods
being adopted. During
The afternoon session Ham took ex-
,eption to this statement of Hanna,
declaring that his company. by ex-
oerience, could determine its depre-
ciation quite accurately.