Evening star., 1924-02-15
EXAMINE METHODS
IN CAR HEARING
Senators Question Traction
and Utilities Commits
sion Officials.
DEPRECIATION AN ISSUE
Whether Rates Are Fixed Accord.
ing to Law, Asked by
Mcclellan.
DEPRECIATION AN ISSUE

The methods Of the Public Utilities
Commission in dealing with the depre-
| ciation. capital, expense and other
charges Of the street railways, particu-
larly the Capital Traction Company,
! were examined today by a Senate Dis
trict subcommittee, at a hearing on the
McKellar five-cent street car fare bill.
Z. B. Fisher, auditor Of the Public
Utilities Commission; Secretary Allen
OF the commission. and officials Of the
Capital Traction Company, were ques-
toned by Senator McKellar. Secretary
Allen and Mr.. Fisher both defended the
course adopted by the commission.
Senator McKellar brought out the
fact that the Public Utilities Comm.s-
sion had not challenged the depreciation
statements Of the Capital Traction
Company.
l"Do you think that this is fair TO
the public?" he asked.
|. Mr.. Fisher replied that he consid-
cred 1t a compliment to the COM
pany.
Last Securities Issued.
! Senator Mcclellan in a series OF
questions developed the fact that
since 1914 when the Capital Traction
s114.500 thete have been no securities
issued by that company. He made
the point that every increase to the
capital valuation Of the company
sheretre there W have S b Been GS from 1oas the eaTn nse
ings of the company. In reply to
a question by Senator Mcclellan az
the sum which had been allowed by
the Public Utilities Commission to go
to the Capital account Of the COM
pany since 1914, Mr.. Fisher said this
amounted to s2.377.06s.55 and that the
depreciation charges permitted at
that time amou9ted to s1.665;o 1000:
Senator McKellar argued that
from these two sources the company
had accumulated approximately $4,-
542, 1000 since 1914. or about 25 per
cent Of the fair value Of the property
established by the PUBLIC gtii:ties les
At the same time he said the COM
pany had been paying dividends
ranging from to 7 per cent In those
years.
Rates of Depreciation.
Senator McKellar asked If the Pub
iished rates Of depre = as pre-
mission mi % and Secretary Allen called
his attention to the fato that such
rates had been tentatively fixed In
1919 after the fair valuation OF the
property had been made by the COM
mission, and that these rates had
been modified slightly since that
time. Mr.. Allen said also that the
matter of authority had been raised
before the Interstate Commerce Com
mission.
That commission has just ruled. he
said, that the Public Utilities Com
mission has this authority.
Senator McKellar pointed out that
the Public Utilities Commission was
created eleven years ago and asked
whether that was not sufficient time
| in which to fix the rates OF deprecta-
tion under the law. Mr., Allen re-
piled that the committee had fixed
rates Of depreciation as soon as the
| valuation of the railroad properties
were made. which took them about
five years. and that It had been as
expeditions as possible.
The hearings on the scent street
car fare bill will be continued next
Tuesday morning. provided Chairman
Ball is in Washington at that time.
Senator Ball was in Delaware today
owing to the serious illness OF his
brother. and Senator Copeland Of New
York conducted the hearings.