Evening star., 1935-05-08
SAYS Commission Will Com.
pei Requirements on
Street Car Tracks.
ANNOUNCEMENT COMES
AFTER HANNA BALKS
Company Head Says Demand Is
Unusual-$1, 100, 900 Additional
Work Already Ordered.
The Public Utilities Commission to-

The Public Utilities Commission to-
day prepared to use stern tactics. II
necessary, to compel the Capital
Transit Co. to carry on during the
remainder of this year the program
of street-car track Replacement voted
yesterday by the commission.
Riley E. Elgen, commission chair
man, in answer to a statement OF
criticism that came from President
John H. Hanna, of the company, de-
clared the tracks are in such state OF
disrepair "they must be replaced"
Hanna last night criticized the
commission for issuing formal order
specifying what rails were to be re-
placed by or before December 81. The
cost of the work ordered by the COM
mission amounts to $1,560000. This
sum is in addition to cost of ST, ,lO0,-
900 for track changes ordered in con-
nection with plans for rerouting street
cars.
Doubts Feasibility.
Hanna characterized the order as
"most unusual" and said it was his
idea that a railroad should figure out
its own repairs and make them. He
contended also that program OF re-
pairs to rails, approved by the COM
pany directors, constituted all the
company would be able to do this
year and doubted whether it would be
feasible for the company to complete
all the work ordered by the commits
sion.
Hanna promised formal state
ment, but it had not been issued up
to noon.
Reports on file at the commission
show the company recently proposed
to rebuild 1881 feet of track, the
cost of which was figured at S502, 300.
The commissions order calls for re-
building of 100000 feet at cost Of
$1,560,000.
Authority Defended.
Elgen stated emphatically, "There
Is no question but what the commits
sion has ample authority in law for
the order it has issued, and, further,
it should be borne in mind that the
commission as well as the company
has an obligation to see that tracks
are properly maintained" He de-
clared the order was not unusual. as
to railway operation, and said that
such orders had been issued fire.
quently in the past.
I'VE will want very substantial rea-
sons why this program will not be
carried out before We will agree to
make any modification" Elgen said
Asked what the commission would
do if the company fatty refused to
do some of the work, Elgen said the
law gives the commission authority
to impose fines for refusal to carry
out orders
II feel sure it will not be necessary
to adopt any such expedient; I am
sure the company will see the justice
of the order" Elgen said. The
tracks referred to in the order are
in bad shape and their condition
makes it imperative that they be
repaired. We can't take no for an
answer"
Cites Reserve Fund.
Elgen also cited the fact that the
company has built up depreciation
reserve amounting to some S12,000,000,
to take care of replacement of prop
critics worn out in service. This is to
large degree bookkeeping account,
since the reserve, built up from COM
pany revenues, is used by the COM
pany for capital additions and i'm
provementS.
Engineer Commissioner Sultan said
he was informed the company has a
fund of $4,000,000 available for use
in such work.
The company is expected to argue
that it cannot receive from manufac-
turers of street car rails, especially of
the underground conduit type, in time
to complete the ordered program by
the end of the year. The point is
made that but one or two companies
now have men trained in the manu-
facture of the underground type rail.