Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-09-24
EXHIBITS ARE FILED
AT FARE HEARING.
FIeharty Seeks to Show W.
R. & E. Co. in Good Finan-
Cial Condition.

ue taxing Oi IeStlIHUtly III tlAC SACS'
car rate hearing was completed today
with the presentation Of set of exhibits
by Peoples Counsel Ralph B. Fleharty,
intended by him to show that the
Washington, Railway &, Electric Co. is
in good financial condition.
Shortly after noon. final arguments
in the case began with Attorney G.
Thomas Dunlop of the Capital Traction
Co.. making the first statement. His
company was the original applicant for
an increase in fare, and he explained at
the outset of his argument that the
object Of the company in making the
application was to secure at least a
part of the return on valuation to
which it is entitled.
The Washington Railway & Electric
Co. was made a party to the proceed
ings by the commission after the case
had started, and the position of that
company, as made known last week,
is that If an increase is to be granted
to the Capital Traction Co., the COM
mission should adhere to the policy of
keeping the fare uniform
Deal With Balance.
The exhibits introduced today were
not confined to analysing the return
! of the w. r. & E. Co. on fair value
| but dealt also with the balance in the
| company's surplus account, the rate OF
dividends that have been paid on both
| common and preferred stock for a
number of years, and the accruals tc
| the companys depreciation reserve.
After the exhibits had been filed
| Samuel r. Bowen of counsel for the
w. r. g. E. Co. declared that these
statements do not help to show whether
| or not the Washington Railway & Elec-
| trio Co. is making fair return on the
| fair value from railway operations.
While the exhibits were being pre-
sented, officials of the Washington
Railway &, Electric Co. pointed out il
some of them are included items re
| ceived from the Potomac Electric Powe
Co. The Fleharty exhibits we're pre-
pared by j. D. Murray, an accountant
of the Public Utilities Commission, ant
there was some delay in getting undo
way with the hearings because of tn
sented by Earl Fisher, executive secre
| tary of the commission.
| Brand Questions Ham.
COL Harrison Brand, jr., member O
the commission, questioned William F
Ham, president of the WASHINGTON Rail
way & Electric Co.. and John H. Hanna
head of the Capital Traction Co., as t
what the rates of fare would be for
ride that included both a street car an
a bus. If the proposed increase in car
| fare to 10 cents cash. with four token
for 80 cents. should be allowed.
I Both officials stated with a 10-cen
cash carfare there should be no charg
for transfers to buses, but there Shout,
be some charge for bus transfers wher
the lower token rate of carfare is paid
Col. Brand followed this up by in
quiring how much revenue the com
| panies now derive from pay transfers
Mr.. Ham figured his company derived
approximately $4,000 annually from
2-cent transfers and $31,377 from
1-cent transfers. Mr.. Hanna said hi,
company received about $4,000 from
pay transfers.
In beginning his final argument, At.
torney Dunlop of the Capital Traction
Co. declared reserves set aside by TIT
companies, and which we're made TIT
basis of some of the. exhibits of thu
peoples counsel, represent property O
the company and are not to be applied
by a commission in making up def1ci
in return. Mr.. Dunlop argued what :
company has earned in the past ha
no direct bearing on what 1t Is earn
ing at the present time.
Earnings Listed.
One Of Mr.. Fleharty's exhibits Sc
forth that the Washington Railwa,
g. Electric Co. had earned 4.06 per cen
return on valuation of 1875, 991 8;
| for the year ending last July, as com.
pared with return of 1893 per cen
last year and 3.78 per cent in 1926. i
was explained that these returns were
| figured on the commissions estimate
of the value of the property.
| Another exhibit set forth that tn;
balance in the surplus account of tn
w. R. g. E. Co. in 1927 was $6.027.-
50699. The exhibit gave the surplus
balance for each year from 1914, al
which time it was $1.020,4 29.
Another exhibit showed the rate o.
dividend paid by the Washington Rail
preferred stock in various years. Fol
the preferred stock the rate was az
per cent in 1904 and per cent for eacf
year from 1905 to 1927. The exhibit
showed that the rate of dividend or
the common stock varied from / pei
cent in 1909, per cent in the follow
ing two years. per cent in 1912, 6lz
per cent in 1918, Z per cent for the fol-
lowing three years, 6l2 per cent in 1917
per cent in 1918. 1t showed that In
1919 the dividend on common stock
dropped to IA per cent and that nc
dividend was paid in 1920, 1921 or 1922
cent, in 1924 S per cent. In 1925 the
rate on the common stock was IS pei
cent, due partly. it was explained, to
the Washington Railway & Electric
Co.'S share of the Potomac Electric
Power Co.'S impounded fund. The rate
for 1926 was per cent and 1927 6
per cent.