Evening star., 1928-04-23


the companies for q 7ie per cent return
was entirely within reason.
Members of the committee seemed
% hs agreed that the companies should
not be compelled to pay the salaries
Of crossing policemen and more than
one-fourth of the maintenance of paw
ing as contained in the agreement, and
Mr.. Rathbone declared that the present
svstem under which the companies
are charged with these expenses &
vicious In principle"
Decide on Sworn Testimony.
At the outset of the hearing Repre-
sentative Hammer of North Carolina
said ne had heard complaints that
ungworn evidence had been placed be-
fore the Public Utilities Commission at
its recent merger hearing and suggested
that Col. Brand and future witnesses
be sworn by the committee. This was
done I'm Col. Brands case.
Mr. Hammer expressed the belief that
the question of valuation was most i'm
portant in arriving at a rate base, and
questioned Col. Brand as 20 his sources
Of advice in reaching d decision on
$50, ,OO0. 900. The witness replied be had
consulted hrst with Mai 4Wl z. r. Co
vel. Assistant Engineer Commissioner;
n, Carl Wolf. engineer Of the Maryland
Public Service Corporal ton. and Wal
ter II. Dunlop, employed by his COM
mission 10 bring old valuation data up
to date.
Says Fleharfy Was Present.
"rve heard some criticism that the
commission, after the public hearing,
vent into q conference with the trac-
ton officials and did not call IN the
opposition Mr. Hammer said. To this
Col Brand explained that Ralph B.
Fieharty, the peoples counsel, repre-
sensed the public az the conferences.
Mr. Hammer iaastened 10 explain that
he had not heard 1t questioned that the
commission was "un6uly influenced.
Col Brand was questioned frequently
about depreciation and other factors
entering into the valuation, He explain
ed he had consulted Mr. Wolf about
depreciation In the case Of the WASH
ingtorl Railway & Electric Co. Although
he himself favored 10 per cent deprecia-
ton ne said Mr. Wolff. knowing condi-
tions better. computed that is per cent
would be fslrer and this was the figure
accepted
The committee vent thoroughly into
matters of capitalization and reserve.
Col. Brand giving them compilations
presented at the recent public hearing.
He explained that the balance In net re-
, serve OF the Capital Traction Co. was
f20ieO00 and for the Washington
Railway T. Electric Co. t4,2is,000.
Life Of Cars In Use.
Answering questions about the life Of
cars nov In use, Col Brand presented
figures showing that 81 cars are II II
years old. IA are z03z years old, IL
is1z years Old; 50, lsi2 years, and
other figures running down the scale 10
90 cars which have bern IN operation
for siz years The average life Of these
he explained Wa 1875 years.
Representative Gilbert Of Kentucky
sais he believed that the expenses of
grade crossing police and three -fourths
of the paving maintenance should be-
charged 70 the general public rather
than u the car riders. Joining with
. flira. Mr.. Ratsloone said when the ques-
ton was up before members OF the
House and senate committees were
agreed that the practice Of charging
the salaries Of crossing policemen Who'll
~ 20 the companies was vicious IN
principle" He declared that IT was un
5Usi 70 make the companies pay for
public service. Elimination ~ these
expenses Col Brand estimated would
result In a saving of 10 per cent In net
M Gilbert. however that this 10 per
cent saving would be reflected In lower
car fares.
The only probability that bs held
nalt after The expiration of work here
was In event the earnings on $50 900
900 are sufsclent 10 bring about 4 lower
IejuED.
HIts One sided Operation"
Mr.. Gilbert pointed out that tbi.
"ogae-sided operation" is detrimental 70
the piI9ito srtegksts aS IL contains no
@ssuiaIlnes thst the public woliid be
gFoectea from q higher rate IN case
revenues fell shorter than expected
Eyi Brand explained for the benefit
Of the committee that the nigh value 0i
Washington Railway 81 Electric Co
EDJck Was 6gIs chiefly t0 its ownership
~ the f'olJJIaaE Electric Power ca, sD1
explained also the favorable arrange
npent in the merger pact by which nlf
new c0mpapy would fecelye power al
cost from the PepGc
He placed the capitalization u Dgth
traction companies ~ D0tal ~ 9bf =
756 900 as represented ny Their out
standing stocks ard bonds
Col Brand occupied the entire SEE
saeSsOn devoted ~ the hearing Lbil
morning Sc he had done last Saturday
The DigtFiet Commissioners Teeeis e6
a request To-Day from Chairman Ii5i'
nsn of The House District committee
Tor q report on flle 1oint resolution su-
fhorinng 8 merger " tfas transit lines
The Commissioners bsye never form
GaIg i1Gi1S1G LafA Yie"s % tas pend