Evening star., 1921-03-16
KUTz QUESTIONS
v. EXEMPTION
OF $228,0DO FUND
Asks Why Maintenance OF
Way Should Not Be
Charged on Reserve.
UTILITIES COMMISSION
EXPECTED TO FIX RULE
Ham Declares There Are No In
structions as to Method OF
Keeping Depreciation.

AeeplnS DeplcCldtloA.
Declaring that the various public
utilities in the District follow differ
ent methods OF keeping their depre-
citation reserve funds, Col. Charles w
kutz. chairman of the utilities COM
mission, announced today that the
commission hopes in the near future
to hold hearings and fix definite rules
on the subject.
The chairman made the statement at
the morning session of the hearing on
the street car fare question a1ter ne
had questioned the action OF tne
Washington Railway and Electric
Company in setting up S2sS'ooo as
depreciation reserve without making
any charges against that reserve Ior
maintenance of way ana structure
during the year.
Says Instructions Were Awaited.
A G. Neal, controller of the COM
pany said the company was waiting
for the commission to specify the
method by which charges should be
made against that depreciation 1uho.
William F.. Ham, president inter-
posed that there are no rules at pres
cnt either of the Interstate Commerce
Commission or the local commission
dealing with depreciation on way and
structure. but only on equipment;
Col. Kutz told the witness that he
could not see why the company set
up the S2SS,000 for depreciation II
it did not expect to make charges
against that fund for replacement
work done during the year.
Seen ms Part of Net Income.
The colonel said his conception of
the matter is that if no charges were
made against the amount set up for
depreciation that sum should be
ad az ~ nj OF -
Osborne 1. Yellott of counsel for
the company asked Mr.. Neal If the
amount set aside for depreciation
last year was greater than the actual
deterioration on the property during
the year.
Objection was made to the question
in that form and it was decided to
get the desired information by COM
pairing the amount set up for depre-
citation last year with the amounts
for the preceding years. which. the
witness said, he would submit later
in the day.
Hopes to Reach Standard.
Col. Kutz then, made the statement
depreciation questionF 6scanse the
ferent methods OF accounting, and
that the commission hopes to stand-
ardize the rules in the near future.
At this hearing the Washington
Railway and Electric Company asks
for continuation of the present rate
of fare of four tokens for 80 cents,
or cents cash.
The Capital Traction Company does
not ask for a specific rate of fare
but tells the commission it could not
60 back to cents with 2 cents for
transfers. as contemplated on April /,
without loss.
Clayton Makes Protest.
At the opening Of the hearing Will.
liam NICK. Clayton. representing the
Federation Of Citizens Associations.
protested against what he termed the
yagueness of the Capital Traction
Company's petition. He said he felt
the public is entitled to a statement
from that company as to what rate
Of fare II thinks il should have to earn
a reasonable return upon its invest
ment.
Col. kutz ruled that that informa-
tion could be developed in cross-ex-
animation.
Mr.. Neal OF the Washington Rail-
showing that for the nine months
ending January 81 last the Washing
ton Railway and Electric COMPANY
earned $66S,23S. Mr.. Neal estimated
that FOR twelve months on the same
basis the company's return would he
ss9o,sS4.32. or 5.2s per cent on the
value of the property.
A previous statement showed that
Tor the twelve months ended Decem-
Der 81 the company's rate of return
was 4.ss per cent on fair value
After Mr.. Neal had read the state
ment as OF January 81. showing a
return or 5-2s per cent. Col. Kutz OBJ
served that it indicated a picking up
In business during January
Charles 5. kimball, engineer of the
washington Railway and Electric.
testified that the company has a main
tenance and repair program for 1921
that contemplates the expenditure nj
s1,70O.4l4.
Among the items which this amount
Included, Mr. kimball named the fol-
lowing:
Repairs to tracks on Nichols ayepua
incident to street Improvement.
Resurfacing of Georgia avenue from
Buchanan street to Military road. now
under way.
Placing draw span in the bridge
over Eastern branch.
Reimbursing the District for payinc
on Rhode Island avenue northeast
The credit of the Washington Rail.
way and Electric Company has been
lost and that company must have the
cooperation of the Public Utilities
Commission IL IL Is to rebuild its
credit, William +. Ham, president
told the commission when he took the
stand.
Mr.. Ham said he wanted II clearly
understood that continuation NJ IN.
present rate of fares is not ALI tha,
his company feels it is legally q,
morally entitled to. The company he
said. is not asking for more AT ,bis
time. because it realizes the pecuIia,
situation existing in the District o,
Columbia Of another street car com
pany being able to operate at a low.
er rate of fare.
Mr.. Ham then outlined on a maj
the large amount of suburban ter.
ritory which his company serves a.
compared with much smaller subur
ban area served by the Capital Trac