Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-08-07
HANNA COMPLETES
F. DIRECT TESTIMONY
Traction President Cites Va
Il ration of Prices and Con-
+ struction Costs.
Continued From First Page)

o. Flenarty, VINO mas OIIleE WOTk 10 40
this afternoon.
Most of the day was given over to
statistical testimony by Mr.. Hanna
relating to the variation in prices and
construction costs of street railway
property between 1925 and the present
On Monday, the commission will con-
slider, as part of the present case. an
application of ras;dents OF Woodley
road to change the route OF the Wood
ley road bus line of the Washington
Railway g. Electric Co.. so that it runs
on Cathedral avenue instead of Wood
ley road between TWenty-seVenth street
and Connecticut avenue.
It is understood that the question Of
ordering the Capital Traction Co. 70
abandon its Cleveland Park de luxe
bus line, which has been looslng money
since its Inauguration, may be discussed
at the sa!-Ie time.
Good -al.nor prevailed at the hear
ing today when company investments
were under discussion during Mr..
Fleharty's cross-eXamination. He
brought out that the average return
the company received from its invest
ments was Az per cent, whereas 1t
could have obtained from 8 to per
cent by investments in call loans.
Gamma Continues Testimony.
When the hearing opened this morn
ing John H. Hanna. president OF the
Capital Traction Co, continued his tes-
timony begun yesterday, to show how
the company arrived at its claimed val
uation Of s26,oso,ooo as of December
81, 1923.
only On the courts valuation In 1925,
but We have followed the principles laid
down by the court is bringing that val
Il
The Capital Traction Co.'S president
then put into the record as an exhibit
a table showing the variations In the
prices Of various materials which enter
into tfcs value Of the company's prop
erty purchased during the last Ave
years.
Mr.. Hanna said there had been no
material changes in the prices paid for
labor by the company from 1925 to
1929 He said that the wages Of some
of the higher priced men had been in
creased, but. on the whole. the average
labor cost remained about the same.
It will say that there certainly has
been 40 decline in wage rates in that
period" said Mr.. Hanna. "If there have
been any changes, they have been up
ward"
At Commissioner Hartman's request
Mr.. Hanna agreed TO furnish the COM
VARYING prices of material purchased
by the company back to the year 1913
Track Relaxing Is Discussed.
Commissioner Hartman asked a num-
Der IF questions regarding the COM
par4ttve cost of rebuilding tracks on
Pennsylvania avenue, Seventh street,
Fourteenth street and other streets N
the city in different years. Mr.. Hanna
said that he did not have the f1gures
before him. but would answer the ques-
ticns later from the company's records.
assume that these questions" said
Mr.. Hanna. ARE intended to show the
Increased efficiency Of the company in
laying track, as indicated by our re-
duced labor costs. I hope the news
papers will not quote me again as 'ad-
hitting something that am very proud
Of It is true that our engineering de-
partment has developed labor-saving
devices and organization methods that
have greatly improved this work"
IT don't mind praising you once in
while" laughed Mr.. Hartman.
But I don't want to admit 1t, when
I am proud Of It," rejoined Mr.. Hanna.
In response to questions by Peoples
Counsel Ralph B. Fleharty, Mr.. Hanna
explained how the company laid new
Fair Value Held Plea Base.
"Is the purpose of your application
a fair return on fair value. or is 1t to
enable you to continue paying 7 per cent
on your stock?"
"It is to give us more nearly a fair
return on a fair value than we are
getting now" replied Mr.. Hanna.
Mr.. Fleharty referred to the COM
pany's estimate that the proposed in
crease in fare would give it return
on its claimed value Of 4.88 per cent.
do you consider 4.s8 per cent a fair
return?" asked Mr.. Fleharty
Are you familiar with the index
figures used by the Interstate Com
merce Commission or the steam rail-
Toads?" asked Mr.. Hartman.
mo" was the reply. but these would
not apply to our figures as we'll as the
American Electric Railway Association
index"
Have you a labor index based on
total wages PAID" :
mo, but the information is available
and the index may be complied"
Wage Figures Verified.
Mr. Hartman then asked the witness
to verify certain figures As to wages
paid certain classes of construction
workers, showing the changes in wages
for several years. The figures were
read, and will be verified later.
Mr. Hartman next read an analysis
Of six Jobs, in each case the cost Of the
job being analysed as to labor, haul
and materials. The analyses showed
that the labor percentage was 372,
1898, 24.s, 24.2, 21.6 and 36.5, respec-
lively. He said that these were all the
jobs he had had time to analyze, but
that he would be glad to include more
jobs II the company cared to submit
them.
Mr Hanna SAID that the cost Of labor
as obtained from the company's job
sheets did not represent the total cost
of labor for particular job, because
some Of the labor costs was included in
the cost Of materials. For instance, he
said. concrete now Is bought ready
mixed, and the cost of labor for mixing
1t Is not represented on the job sheets as
labor costs. Similarly, metal products
are bought already worked up at con-
siderable labor expense, but go on to
the job sheets as material costs. He
said, however, that the figures would
be checked.
Securities Are Steadied.
mo. sir: I do not" answered Mr..
Hanna.
other questions by Mr.. F1eharty
brought out the fact that the company's
income in 1928 available for return from
securities in other companies owned by
1t was approximately 1000. The wit
ness also said that the average interest
on these securities owned by the COM
pany was less than AZ per cent.
1T was more before you made Us sell
= q ~-,sA II