Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-02-24
CHEST GIFTS LEAD
TO CONTROVERSY
Company Heads Opposed in
Charging Donations to
Operating Costs.

The question of whether contributions
made by utility corporations to the
Washington Community Chest should
or should not be charged to operating
expenses arose as a controversial issue
today before the Public Utilities Com
mission.
Officials of the Community Chest
joined with utility officers in protesting
that such contributions constituted a
legitimate public expenditure and should
be so charged on the col 0any's books.
Members of the commission took the
opposite view, without rejecting any
thing against the Community Chest and
its general purposes.
Regulations Raise Question.
The question arose in connection
with the hearing on proposed regula-
tions which provide uniform account
ing systems for the local traction COM
panies to avoid the conflicting practices
now in vogue. In this connection one
of the regulations proposes that "dona-
tons to churches, charitable institu-
lions and like organizations shall not
be charged to operating expenses"
There was unanimous opinion that
such gifts in question do not make a
dollars difference in the amount of
dividends to stockholders, whether
charged to operating expenses or to
capital account, but the commission
held that they would have bearing, as
part of operating expense, on the
question of rates.
Those appearing on behalf of the
Community Chest were Director Elwcod
Street, Treasurer John Poole, E. c.
Graham, vice president; DR.. Abram
Simon and Oscar Leonard, represent
nf oil
Federation, and Rev. DR.. John O'Grady,
director of the Catholic Charities.
Ham Speaks for Companies.
William F. Ham, president of the
Washington Railway & Electric Co.
and the Potomac Electric Power Co.,
in opposing the proposed regulation of
the commission declared a contribution
to the Chest was, in his opinion, and
generally held elsewhere, a legitimate
part of the operating expenses.
S. r. Bowen, attorney for the Capt.
tai Traction Co., took a similar position.
Both officials agreed that if the Pub
lie Utilities Commission holds that a
contribution to the Community Chest
is not legitimate operating expense.
they would loath to recommend
such gifts. in the interest of their
stockholders.
Since eight general hospitals are in
cluded in the Chest agencies, Mr.. Ham
declared on behalf of his companies
that their contributions to the Chest
were in effect saving, as the COM
panies would be compelled to main
tain hospital facilities for injured
under the workmen's compensation
act.
With 5000 employees, whose families
include about $4,000 persons, he pointed
out that the Chest provides hospital
facilities for them which the COM
panies otherwise would be compelled to
! furnish.
Patrick Fears Rate Increase.
Chairman Patrick of the commission
said the only question involved was how
the contributions should be accounted
for on the companies books. He
pointed out that the commissioners were
IN duty bound to look at the question
! from the public viewpoint and added
that the inclusion of such contribu-
tons in operating expenses may have
the effect of a quest being made for ar
increase in rates"