Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-07-31
Indicates Doubt of Propriety
of Putting Maryland Hold
ings in D. c. Valuation.
DECISION ON w. r. T.
STATUS is DELAYED
Hanna and Heberle Put Through
Grueling Cross-Examination at
Fare Increase Hearing.

Commissioner Harleigh H. Hartman
OF the Public Utilities Commission con-
! tinued his steady questioning of wit
nesses for the Capital Traction Co. in
the hearing on the application for in
creased fare today, and when the
morning session ended Mr.. Hartmans
queries indicated that some doubt ex-
tsted as to the propriety of the in
clusion of s1,0ooo00 in the companys
claimed valuation of s26,00o,00o.
The items in the valuation as to the
inclusion of which doubt has been
raised are such as the following:
Property located or used in Maryland
added to the valuation of property in
the District; additions to capital ac-
count on certain items of relaying
tracks where the cost might have been
charged to maintenance instead of cap
ital charges for relocating trolley poles
and guy poles which, theoretically,
should not enter into a reproduction
value since the property, if it were to
be reproduced, would be reproduced
with the poles, and so forth, in place as
they are today without the necessity for
moving them; errors in bookkeeping re-
sulting in double charges to capital ac-
count; failure to deduct overhead costs
when writing of the costs of retired
property; estimating the value of sal
wage in retired material instead of en-
ter1ng the exact amount received from
sale OF the scrap; charges Tor property
not now in use; expenses Of additions
to leased lines and leased property.
May Deduct Depreciation.
Mr.. Hartman's questions directed
toward depreciation are also looked
upon as a forecast that the commits
sion may consider deducting accrued
depreciation from the companys valua-
ton figure. This was not deducted by
the Court Of Appeals in its decision
fixing the value of the company. as Of
January /, 1925, as the subject was not
made an issue in the case. The COM
pany's accrued depreciation now
amounts to more than S5,000,000.
How far the commission will 60 in
taking out of the company's valuation
any items now claimed by it, however.
is speculative at this time.
A decision as to whether the Wash
ington Rapid Transit Co. viii be made
a party to the case was postponed until
Tuesday to allow counsel for that COM
pany to confer with Harley P. Wilson,
the company's owner, who now Is in
New York.
Hanna Is Questioned.
The entire morning session today was
given over to questioning by Mr.. Hart
| man of John Hanna, the company's
! president, and j. E. Heberle, its chief
statistician. The questions, of which Mr..
Hartman has upward of $50, were Of
| such searching nature that to most OF
them Mr.. Heberle replied: Il cannot
| answer that question without further
study of records not now before me-"
The records before Mr.. Heberle in
! cluded brief case of papers, flanked
| by large piles of heavy books containing
company accounts dating back to 1925,
but Mr.. Hartmans questions could mo-
| be answered without reference to jol
sheets stored in the company's Offices
Never in the recollection of those who
have been with the commission for
many years has any witness been sub
Jected to such grueling cross-exami-
nation.
When 1880 was reached Hartman
| announced that he had had enough and
the hearing was postponed until
| o'clock, although the regular rules do
not call for recess until noon.
! When the hearing opened this morn
ing, Chairman Patrick called attention
to the fact that the commission had
postponed until today its ruling on the
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