The Washington herald., 1921-07-26
Sees lO-CENT
FAREFLINES
GAIN DESIRES
w. Nick. Clayton Warns
Of Depreciation Fund
Raise Danger.
SCOUTS COMPANIES
CLAIMS OF NEED
Says Gas Company Rates
Show How Public
Would Pay Toll.

Street car fares would prooaoiy
be increased to 10 cents in a short
time il the traction companies are
allowed to increase their deprecia-
ton funds to the extent they desire,
William Nick. Clayton declared yes
terday after the public utilities
heafings.
THE Capital Traction Company,
with over 100000 now in its
maintenance fund, a surplus Of
500, 900, its tracks, buildings, cars
and other properties in first class
condition, needs a depreciation fund
about as badly as a $50 gold piece"
Clayton declared.
Mr.. Clayton also took exception
to the statement of Osborn I. yell
lott, attorney for the Washington
Railway and Electric Company, that
depreciation is an operating ex-
pense that must be borne by the
public and that rates of deprecia-
tion must be sufficient to establish
funds for replacement of property.
Change of Color.
when rates, tolls and charges of
public. utilities were fixed by Con-
gress and utilities had to get along
under the provisions set forth by
that body, depreciation funds, when
they came into conflict with divi-
dends, apparently went into the dis
card" Clayton argued, but with
the advent of a commission form Of
control with the fares and tolls fix
able and the people supplying the
funds for depreciation, a noticeable
affinity for depreciation funds was
among the utilities COM
panies.
Permit these corporations 10
expand their depreciation funds to
the limit requested and II is reason
able TO expect that car fares would
easily reach 10 cents within very
short space of time" Clayton pre-
dicted.
Result of Rates
When the counsel for the Wash
ington Gas Light Company admit
ted that his company was not in
need of Il depreciation fund. formal
ly because Congress gave it ample
rates he could have continued by
that the rates provided
by Congress also enabled the gas
to pay a "a per cent divi-
dend annually for years, on it's
stock and permitted 1t to accumu-
late over s5,OO0,OO0 in its surplus
funds
Now. q the public can be per-
suaded to- set up depreciation
fund for it the Gas Light Company
should certainly have no reason To
{ omplain.
1t was planned to discuss the
question of depreciation funds at
a Joint meeting of the utilities
whose representatives in
accordance with the programs ap-
peared before the Public Utilities
yesterday. The COM
mission however, has decided that
the case of each company shall be
taken up separately and today, to-
and Thursday have been
designated as the days for the hear
ings.
Views of Experts.
Albert +. Berry. president of the |
and Potomac Telephone |
Comnany. told the commission that |
the maintenance of a depreciation |
fund for his company was provided |
by the Interstate Commerce Com |
mission owing to its interstate |
status.
The question of uniform regula- |
lion governing depreciation funds |
was objected to bv John H. Hanna, |
vice president of the Capital Trac-
ton Company, who argued that the |
lifferent character of service rem
Tered by the companies made a |
practical application OF such a sys-
.em impossible.
The Public Utilities Commission |
will take up the depreciation rates
If the traction companies this
Tomorrow the gas COM
1anies will be heard and Thursday
las been set to hear discussions of
rates for the telephone
company and the taNicab compa-
lies,