Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-08-22
HARTMAN PROBES
W.R. & f. METHODS
IN BOOKKEEPING
Questions Apparently Would
Show System Fails to
Give True Rate.
CARFARE HEARING HELD
TO BE NEARING CLOSE
W. r. 7. Case to Be Next, With
Patrick Hopeful Sessions May
End Within Week.


Bringing out his little black book"
again today, Commissioner Harleigh H.
Hartman subjected President William
F. Ham of the Washington Railway A
Electric Co. to a searching examinatio
OF the companys methods IN handling
its depreciation and capital accounts
at the carfare hearing before the Public
Utilities Commission.
Mr.. Hartman's questions seemed to
be designed to show that a higher rate
OF return is being earned by the COM
pany than is disclosed by its bookkeep-
ing methods. The company's books in
olcate that 1t now Is earning Al per
cent on its claimed minimum value of
Sl9,28O,00C. 1t estimates that the re-
9uestea increase to 1o-cent cash fare
with TOUR tokens for 80 cents would
give it return of 6.25 per cent
In answer to Mr.. Hartnnan'S c,.s
tions. Mr.. Ham continued to insist that
tne accounting methods of the conn
pany were correct. including its method
OF handling It's depreciation and can
ital accounts.
Hartman Attacks Bus Price.
Mr.. Hartman specifically attacked
the inclusion in the companv,s vai11a-
ton OF $500 for the purchase of r.
L: Mays right to operate the Hyatts-
vile bus line. He asked Mr.. Ham
whether the company had not obtained
the right to operate buses over that
line prior to the purchase of Mr.. May's
franchise: Mr.. Ham said that that
was partly true"
There were indications today that
l.
nnal stages. The evidence of the WASH
lngton Railway and Electric Co. is near.
ly all in. This will be followed by cvi.
oence submitted by the Washington
Rapid Transit Bus Line, which has
been made party to the present rate
case
William NICK Clayton. counsel for
the Federation of Citizens Associations.
indicated after the hearing adjourned
for lunch, that he might not consider
1t necessary. in view of the develop
ments at the hearing. to present evil
dence on behalf of the Citizens Asso-
Citations attacking the application Of
the two car companies for an increase
OF fare, He will not decide definitely
on this point. however. until he has
studied the evidence already in.
FIeharty May Submit Evidence.
1t is expected that evidence will be
introduced against the companies appli-
cat on by Ralph B. Fleharty, peoples
counsel. When all the evidence is in,
the lawyers representing the car COM
panles. the people. and the Citizens
Associations will present their arru-
ments before the Commission
Gen. Mason M. Patrick. chairman Of
the commission. expressed the hope dur
ing the recess that the hearings might
be brought to close by the end of
next week. but this was regarded as an
optimistic" view Of the situation by
the attorneys present.
There were stronger evidences today
that the commission is moving toward
a new valuation of the street car prop
critics in the District. at least of the
Washington Railway q Electric Co.. to
be used As basis for determining the
proper rate of fares which the com
panies should be allowed to charge the
public.
Mass Of Statistics.
Today's hearing got away to a slow
start, the reason being that officials
Of the washington Railway & Electric
Co., began reading into the record
mass of statistics, bearing on costs Of
material, wage comparisons, income
taxes, and other items entering into the
company's previous statement of operat-
ing expenses.
These were supplied by Mr.. Ham in
answer to questions submitted by Mr..
Hartman and other members of the
commission several days ago, the figures
for which had required an exhaustive
search of company records.
Mr.. Hartman Supplanted these tech
nical answers with other questions of
an involved nature designed to bring
out computations made by the company
in arriving at its estimates Of depre-
ciation
Some of these questions were so long
and ponderouS the commissioner was
required to read them and the proceed
ings were held up from time to time as
Mr.. Ham and his assistants busted
themselves poring over pages of rec
ords in explaining how various items of
trackage and other betterments were
charged to operating and expense ac-
counts.
Bolt Costs Double.
Information was gained from the an
swer supplied by Ham to the first of
Hartman's questions that the cost Of
machine bolts. in various sizes, had
nearly doubled from 1914 to 1928 and
that trolley poles we're 50 more per
pole.
Mr.. Hartman had asked for a COM
parative statement of wages in 1918 and
1921. Except in the case Of office en-
ployes of the wage department and
common laborers. the wages indicated
a slight general increase The railway
executive pointed out that nine hours
of labor was a working day In 1919.
compared with eight hours in 1921, in
both the wage and mechanical depart
ments.
Wages for foremen ranged from So 80
to $3.50 in 1919, to $4.40 and $5.9 in
1921. Common laborers received s2.97
to $4.20 in 1919 and $40 to $3.50 in
1921. Top wages for skilled labor was
$3.50, the same for both years. but
the minimum wage had increased from
$3.50 to $40 per day. In the case of
general machinists the minimum wage
had increased from $500 In 1919 to
s456 in 1921, but the top wage Of $3.50
in the latter year was only cents q
day higher than previously.
Depreciation Figures Are Given,
Mr.. Hartman previously had called
for information regarding the amount
of depreciation included in operating
expenses for various years as contained
in former statement filed by the COM
pany. Mr. Ham, reading from his rec
ords. included the amounts of depre-
citation from 1922, which was $48S, ,210.
to the 12-month period ending April 80.
1929. that showed q depreciation charge
Of $646. 400. The depreciation charge
in 1929 was $637,14i. These figures
Continued on Page 2, Column 50
a