Evening star., 1923-12-27
L.C. c. DEN|ES|T CAN
' FIX RULES FOR CAR
LINE DEPRECIATION
' Lack of Jurisdiction Claimed
in Opinion on w. R.
& {. Case.
LOCAL BODY NOW READY
TO ADOPT REGULATIONS
Allen Says Decision Ultimately
Will Have Effect on
Rate Question.

In far-reaching decision affecting
nearly all of the public service cor
porations of the District, the Inter-
state Commerce Commission today
held that 1t does not have jurisdic-
tion over the fixing of depreciation
rules for the Washington Railway
and Electric Company.
Although the case involved only
the Washington Railway and Electric
, system, 1t is all-inclusive in. effect,
for the reason that the local Public
Utilities Commission has delayed the
fixing of depreciation regulations for
all the companies awaiting this de-
cision.
Walter C.. Allen, executive secre-
tary to the local conmission, pointed
out today that the decision eventual
ly may~-affect the rates charged by
fhe fight street TaMiiway, M gas and electric
depreciation is an Important factor
entering into rate-f1xing.
Up to this time the commission has
not been able to deal systematically
with the question of depreciation in
any or the rate cases, because 1t has
not been able to lay down definite
rules pending settlement of the ques-
ton of Jurisdiction.
Must PrOmulgate Rules.
The first thing the commission must
do now is to promulgate it's rules.
which were drafted tentatively in
1921 and then laid aside until 1t could
be definitely determined whether the
Interstate Commerce Commission had
jurisdiction.
When rates come up for revision in
luture the commission will be able TO
deal definitely with the question of
what is proper allowance for de-
probation in arriving at decision
MT: Allen said the commission also
Will be in position to take up the
nuch-dlsputed question of whether
tne amount in a company's deprecia-
tion reserve should be subtracte,i
from the fair value Of the property
IN fixing rates. If such a subtrac-
ton is made it would reduce the fair
value Tor rate-making purposes.
Officials of the Washington railway
and Electric Company. after a hasty
reading of the Interstate Commerce
commission decision. Questioned
whether the decision removes the
company entirely from the 1urisdic-
ton of the federal commission, or
whether 1t merely affects the han
ding of depreciation
Effect of Separation.
If the decision separates the COM
pany from all control by the Inter-
state> Commerce Commission, they
said, it would mean there would be
nobody to regulate through commu-
tation rates between Washington
and Maryland towns, such as Rock
vile and Laurel.
1t was intimated that the COMPANY
would ask the Interstate Commerce
commission to make this point clear.
-, arter going carefully into the case.
the Interstate Commerce Commission
concluded with this paragraph:
Having concluded that the Wash
ington Railway and Electric Com
pany, together with its subsidiary
electric companies, is not a carrier
subject to the act, We must hold that
we have no jurisdiction over the de-
probation charges of these com
panies."
1t was stated that no court appeal
would be taken from the Interstate
Commerce Commission verdict.
Samuel r. Bowen, vice president
and counsel for the COMPANY. mada
a brief statement, in which he made
IL plain that the corporation did not
go to the Interstate Commerce Com
mission because II objected to having
its depreciation rules fixed by the
local authorities. but merely to settle
c.
tion rested.
Has Obeyed I. c. c. Rules.
1t was pointed out that in the
past, and even before the local COM
mission was created, the Washington
Railway and Electric has followed
the rules of accounting laid down by
the Interstate Commerce Commission.
The Interstate Commerce Commits
sion pointed out that the Supreme
Court, in j similar case in the matter
OF the Omaha Street Railway VS.. the
commission, held that street railways
are not carriers by railroad within
the meaning of the act, and reversed
an order of the commission prescrib-
ing passenger fares
The Washington Railway and
Electric Company. together with its
subsidiaries, operated a local street
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