Evening star. [volume] (Washington, D.C.) 1854-1972, 1943-01-06
UCApp'roves
Capital Transit
Book Changes
Depreciation AccruuI
Rate Increased;
Hunkin Protests

Over the protests of Gregory
Hankin the Public Utilities Commits
sion today authorized the Capital
Transit Co. to increase its rates of
accrual for depreciation for company
equipment and plant, retroactive for
the entire past year.
simultaneously it directed the
company to decrease by 100000 its
own bookkeeping account for road
and equipment, in keeping with a
plan recently submitted by the
company.
The orders were issued by James
n. Flanagan, PUG chairman. and
Engineer Commissioner Charles W.
kutz. AS to an increase in de-
probation accruals - bookkeeping
accounting of funds set aside for
replacement of property worn out
In public service, Mr.. Hankin pro-
tested that he could not agree be-
cause the Commission had not held
a formal hearing and because he
said the agency could not know the
facts for certain.
Protest by Hankin.
The second order of the Commits
sion, approving the company's re-
quest for an adjustment of its own
plant, by reduction of 100000
in its claim of value as to road and
equipment account, was protested
by Mr.. Hankin on the grounds that
there appeared to be no reason for
this hasty action and that he
did not know whether the action
was justified.
These highly technical matters
had been under discussion for some
weeks between the PUG and its staff
and officials of the company. In its
first order today, the PUG approved
request of the company filed De-
cember 9, and modified December
81, asking for an increase in rates
of accrual of depreciation for rolling
stock and other company equipment.
The reasons given by the company
for the increased rates were:
l. That for some time the prop
erty and plant of the company had
been subjected to unusual wear and
tear" because of the severe strains"
placed on it due to service demands
made by war activities in the Dis
trict.
Suffers from IneXperience.
2. That the company had been
obliged to employ additional main
tenance and operating personnel
and to replace a large number of /,
experienced men, called into the /
armed services with the result
that its plant is suffering to some
extent because of the lesser aver
age experience of employees"
8. That difficulties encountered
In obtaining proper maintenance
materials aggravates the situation
as to wear and tear"
The Commission majority found
that by some measures of test, use
of street cars increased by about
20 per cent and use of buses by
about 10 per cent.
1t also found that past rates of
accrual for depreciation were based
on opera ton in normal times" and
that there was Justification for the
following increases in rates of ap-
proval for depreciation: for the
new street cars, an increase from
4 to per cent, for buses from 10
to II i per cent and for other equip
ment or plant an increase from is
to per cent. The rate of accrual
for depreciation for Providence re-
conditioned streetcars remained the
same at 65 per cent.
Not Final Determination"
The commission majority in ap-
proving the accrual rates stipulated
that the order is not to be under
stood to be final determination of
proper rates of depreciation" and
said the new order was to remain
IN effect only until further order"
In his dissent Mr.. Hankin said: Il
cannot agree with the action taken
by the commission without
public hearing, without facts based
upon public record, without knowl
edge of the ESSENTIAL facts and with
out an order which would come
within the purview of the statute.
my objection to the authorize
ton is not to be construed as de-
termination that the company's
rates of depreciation should not be
Increased, for neither the commits
sion (majority) nor I have at our
disposal the facts which would en-
able us to determine whether the
rates are adequate or inadequate
- My objection is solely to the
fact that the action taken by the
commission is not in compliance
with the requirements of our statute
and is contrary to all rules of orderly
administrative procedure.
1.-The fact that utility wants to
increase its rates of depreciation
does not by itself constitute SUI
An}oot roo eon for comnliance with