Evening Star Newspaper, July 31, 1929, Page 3

HARTHIAN PROBES | VALUATION CLAIN Indicates Doubt of Propriety of $1,000,000 Included in Company’s Figures. (Continued From Pirst Page.) motion made by William McK. Clayton, representing the Federation of Citizens' Associations, that the Washington Rap- id Transit Co. be made a party to the resent rate case along with the Cap- tal Traction Co. and the Washington Railway & Electric Co. He called upon George P. , Hoover, counsel for the Washington Rapid Transit Co., to state his position with regard to the motion. Mr. Hoover explained that Harley P. Wilson, owner of the Washington Rapid Transit Co., and a member of the board. of directors of the North American Co., now is in New York and would not be able to get to Washington before Mon- day. On that day, he said, Mr. Wilson :‘i]l confer with counsel for the company ere. e “I ask the commission that this ques- tion go over until Monday or Tuesday, when we will be able to appear and state our position,” said Mr. Hoover. Clayton Agrees to Extension. Chairman Patrick asked Mr. Clayton whether he had any objection® to the ostponement. PO Mo, T am willing to agree to the ex- tension of time,” replied Mr. Clayton. “Unless Mr. Hoover comes back Tues: day and wants another extension of time to confer with the North Ameri- can Co. 5 “There is no suggestion of that,” said Mr. Hoover. Chairman Patrick then announced that the board's ruling on the question of making the Washington Rapid Transit Co. a party in this case would be postponed until Tuesday. With J. E. Heberle, chief account- ant for the Capital Traction Co, on the witness stand again, Commissioner Hartman resumed his detailed ques- tions reggrding the accounting methods of the Capital Traction Co. “To what extent,” asked Mr. Hart- man, “does the company's valuation figure include property mnot used in street car and bus service?” “None, except that from which the yevenues go into_operating income,” replied John H. Hanna, president of the company, who was assisting Mr. Heberle in answering the questions. Mr. Hartman next asked whether the north-bound connecting tracks from the Decatur street car barn were, in- cluded in the valuation of the com- pany’s property. When Mr. Hanna re- plied in the afirmative, Mr. Hartman asked: - - “May Be Needed at Any Time.” “How long since these connecting tracks have been in use? “I cannot say exactly,” replied Mr. Hanna, “but I will explain, as in the | case of similar properties not in pres- ent use, that they may be needed by the company at any time.” Mr. Hartman asked Mr. Hanna about | the allocation of the cost of tracks in foint use by the Capital Traction Co. and the Washington Railway &| Electric Co. Mr. Hanna said that the cost in the valuation figures was allo- cated 50 per cent to each company. “There is no justification for allocat- ing the value of these jointly used tracks on any other basis than 50 per cent,” added Mr. Hanna. “The public does not have to bear the value of this property more than once; it makes no difference to the public at all. Service requirements of the two companies con- tinually are changing. Some days, one company operates more cars over the Jointly owned tracks and some days the other company operates more cars. In the long run, it all comes to the same thing as far as the public is concerned.” No Attempt to Segregate Values. In response to questions by Mr. Hart- man, Mr. Hanna further stated that his company makes no attempt what- | ever to segregate bus and car opera- tions as far as valuation is concerned. He said he considered the use of the bus partly as an extension of and partly ’z%cnu NOTICES. PAPERHA! IG—ROOMS, $2 UP. IF YOU have tne paper. Samples furnished. Uail SoLabEy i ol 2% THE ANNUAL MEETING OF THE STOCK- holders of the Potomac Insurance Company of the District of Columbia will be held at { the company. 900-6 F_street on Monday. August 5. 1920, at 11 am. 'Books for the ster’ of 'stock will be’ closed from July 24 fo August 6, inclusive. ALEXANDER K. PHILLIPS, Secretary. WANT TO HAUL FULL OR PART to or from New 'York. Richmond, Boston, Pittsburgh and all way ‘points: special rates NATIONAL DELIVERY ASSN.. INC. 1317 N. Main_1460. _Local moving_aiso. the office o northwest, N_Y. ave. WE MOVED YOUR NEIGHBO] Kknow wnere and when you wish to move: and you, too. will like our service - Cail National' §220. DAVIDSON TRANSFER & STORAGE_CO. e ates; Tafes for part loads. UNITED STATES STORAGE CO., INC. 41 in 2159. NG COMPANY PTION NOTICE. To_holders of Home ice Manufacturin Company First Mortgage Sinking Fund Gole Bonds. Series A dated April 1. 1927: Notice is hereby given that in accordance with section 1 of Article III of first e, dated April 1. nufacturing FOME 1CE MANUFACTURI scribed in the said mortgage and hAvin assumed the terms and conditions thereo Dby assumption agreement, dated the 28th day of Febraury, 1929, has elected 10 exer- cise its cight and option to pay off and to Tedeem in whole on the first day of October, 1929, all of the bonds then outstanding of the first mortgage sinking fund gold bonds. secured by the t 105 of the principal amount thereof and with accrued interest to October 1, 1929. _ ‘The holders of the faid bonds are hereby reauired to present the same for payment and redemption at the princi Merchants' Trust with all interest coupons maturing quent to sald redemption date, and interest accrued cn or prior to October 1, 1929, will be paid unly upon the surrender of the cou- pons therefor. Further notice is hereby given that the said bonds will cease to bear interest on anc er said_October 1 d that the ! thereafter t no pres- ds sha coup: shall nd tha ent or future holder of said bon 1 be th yment of interest. o before October 1, y deposited by_the lndersigned with 1l ts’ Bank and Trust Company. a: in amount fo the said prin- . premium and interest of all of the bonds and all expenses and charges nccordance with the aforesaid tagbe lien the i negs 'iorh Whoareed Mirustee: 'AMERICAN ICE_COMPANY, By CHARLES C. SMALL. President. WINDOW SHADES & SCREENS Let us give you an estimate on making said pavable in rst morts D | improvements should not be included in US | interest of the public to improve the | siderable partof the value of the prop- | erty at present. pplementary to rail service; that the company is in the business of trans- portation and that people can best be served by a combination of bus and rail systems; that the service is co-ordi- nated as far as possible and that some bus 1 re purely feeders for some are supplementary turned the rail lines the rails. . Mr, Hartman's questions next on the method used for separa values of rail jointly used by the i tal Traction and otl 3 3 xplained that when the where joint service is in built they were paid for on the basis of the prospective use by the varlous companies. Since that time, he said, whether service changes have altered the actual percentage of use among the companies, no change been made in Allgltlnl the value of these jointly used tracks among the companies for valuation purposes. 2 Qne Bus in Takoma Park. In answer to further questions Mr. Hanna said that one of the company's busses always is in use exclusively in ‘Takoma Park, Md., but that the value of all of the busses is included in the valuation figure for property used in the trict. -He said that it was im- ‘able to allocate the value of roll- g stock as between the value of the company’s property in the District and in Maryland, since many passengers using the comrny‘s service. in the Dis- trict would not have done so except for fhed existence of its service in y- and. * Taking up the question of charges included in the capital. accounts as overheads, Mr. Hartman sought to dis- cover the amount written out as over- head in property retired since January 1, 1925. Mr. Hanna said that he could not furnish this information, nor could he tell what overhead was added in the case of new property bought or installed since 1925. Question Goes Into Detail. Mr. - rtman’s question went into such great detail that Mr. Hanna com- plained that the trend of the ques- tions was “rather unfair” to the com- pany, saym,’ that many of the alleged erroneous charges to “capital account clearly were the results of errors which the company would have been glad to correct had the accountants of the commission pointed them out to the company accountants at the time they were discovered. Most of the items, Mr. Hanna sald, were of such insignificance that in any case they would have no bearing what- ever on the final value of the company as the errors were just as likely to|Mr; occur on one side of ‘the ledger as on the other. At first he said that Mr. Hartman's questions carried an insinu- ‘atien, but Chairman Patrick of the commission intervened and said it must be clearly understood that none of the questions asked By the commission must be taken as an insinuation of bad faith on the company's part and that the commission knew that any errors made on the company’s books were made honestly and in good faith. Mr. Hanna then withdrew his remark. Further questions by Mr. Hartman then brought out that the valuation figure of the company includes $300 for equipping one of the company’s garages for the benefit of the Washington Rapid Transit Co. and an item of $1,663 paid as an assessment for paving M street in 1926. Mr. Hanna defended in- clusion of the latter item on the ground | that it greatly increased the value of the company's office _property in Georgetown in front of which the street improvement was done. “In 1925 you included $49 for th!; transfer of an easy lift roller jack from | the bus garage to the shop, did you | not?" asked Mr. Hartman. This question caused Mr. Heberle to dig deep into his records. After thumb- ing over his papers for nearly five minutes the witness replied: Transferred for “Convenience.” “Yes, we made that transfer for the | purpose of convenience. It was a paper | transfer from one page in our books to | another page to correspond with the | actual physical transfer of the roller Jack.” Mr. Hartman then launched into a series of questions ‘about the improve- ments made by the Capital Traction Co. on leased property, referring particu- larly to the Washington-Maryland Rail- way Co., which runs from° Kennedy street to Takoma Park. Mr. Hanna ex- plained at some length the relations existing between this company and the Capital Traction Co. The Washington-Maryland Co., he sald, was first operated‘as a leased road under a contract which provided that the Capital Traction Co. should make improvements at its expense. He said the smaller company had no money to make improvements. “While we operated the road under a lease,” continued Mr. Hanna, “we made some improvements. After we purchased the securities of the com- pany we made some substantial im- provements. I suppose they would total about $30,000. “Perhaps, technically speaking, these | our capital account, but morally we should be entitled to earn a fair return on that money, 8s it was spent in the service to Takoma. Improvements Are Large Part. “The improvements are a very con- If we continue to operate this line we will have to re- build it entirely. I think it fair that the cost of these improvements should be included in our valuation.” Referring to further questions by Mr. Hartman, Mr. Hanna said that traffic on the Takoma line still was growing, but not so rapidly as it was a few years | ago. He said the falling off in real estate operations in that section had | resulted in a decrease in the rate of | growth of the business of the line. Just before the commission adjourned for lunch Chairman Patrick asked the following questions: “How and when will you furnish the answers to various questions which | have been asked here and which you have promised to answer later from your records?” \ how TNl tell you 3 the f8 not S S o S . | properly charged. Heberle will have tion. work our hot o do this excava- from records, with the the enginee: will t work_at be a very big. job. e Yo G e 12 We answer the questions and. put the answers in the' record all at & same time.” Hanna Alds Heberle. 3 Commissioner Hartman at yester- day afternoon’s. session- went into the accounting system of the Capital Trac- unn&:.lnu:eg:nwlumhovm company’s valuation figure was made up.. While Mr. Heberle was technically on the witness stand, it was agreed that Mr. Hanna, who is under oath, should assist in answering the questions. In response to questions Mr. Hanna sedd the Grace street power house was; included in the valuation total at $140,- | , although its assessed value was $70,000 and the company had sought to have the assessment reduced to 0,000. H G biecting to thls line of questioning, G. Thomas Dunlop declared t assessed value was “not competent evi- o broperty 1n. th property in the Mr, Hanna declared that assessed value had nothing to do with the value of the property for rate-making pur- poses. It was developed that the power house is no longer in use as such, but 1s used partly as a storehouse and that a part of it has been rented to a paper company. Age of Equipment Sought. Many questions were asked by Hart- man to bring out the age of buildings, tracks, cars and busses of the com- pany. Mr. Hanna gave the dates-when the various stretches of track were built originally and when they were renewed last. The same information was given with respect to many of the bulldings. Mr. Hanna sald the average age of the company's busses was two years and four months. He admitted that the age of two of the busses purchased from another company was computed from the time they came into the pos- session of the Capital Traction Co. The remainder of the company's 34 busses were practically new today, he said. When Mr. Hartman launched into a series of questions about the types of yokes and joints used in laying the ‘company's tracks, Mr. Dunlop de- manded to know the purpose of these and similar questions. “That will be developed later,” sald ict. . ‘Hartman. 5 “Then I object to them now,” sald Mr. Dunlop. “Well, the present purpose is to show the specific types of property to which the company has attached a 1928 value,” said Commissioner Hartman. Dunlop Continues to Object. “I still object,” declared Mr. Dun- lop, “unless it is intended to show how these questions and .answers can affect the company’s valuation for rate-mak- ing purposes.” = Chairmai Patrick overruled the objection and an exception was noted by Mr. Dunlop. When Mr. Hartman began to ask questions about the cost of a new roof on a part of the Navy Yard car barn, suggesting that an explanation should be given as to the way this cost was carried on the company's books, Mr. Hanna showed resentment. “We have kept our books and records in conformity with the instructions given us by the commission in the past,” said Mr. Hanna with consider- able heat. “Jobs that cost consider- able sums were entered as capital ac- count, rather than charged to main- tenance. We have done this because we belicved it to be the proper way and because it was suggested by the commission.” Mr. Hartman asked & number of | questions designed to show that the cost of many small jobs had been im- He cited one item of $17 and an addition of $6 to the capital account for bus license plates. Hanna Clashes With Hartman. ‘The sum of all these items would make very little difference, declared Mr. Hanna, either in increasing or de- creasing the total value of the com- pany’s property. 2 “These little mistakes” he added, “were not intended to boost valuation. If we had wanted to do that we would | have picked larger items.” “We'll give you full credit for that,” answered Mr. Hartman. Mr. Hartman also developed that since January 1, 1925, the company has entered the costs of all new consiuc- tion and other capital additions to its capitdi account at actual cost, rather than at reproduction cost. e com- pany, in its valuation case before the District Court of Appeals, had con- tended strongly in favor of assessing such items for valuation rposes at the “reproduction” cost—that is, the cost to rebuild the property anew as of the date of valuation sought. Mr. Dunlop cxplefaed this by saving that since 1925, there has been little change in price leveis, and that the difference between the reproduction cost of an item of property on December 31, 1928, | and the actual cost of the item at any | time between uary 1, 1925, is neg- the actual value | Wi HOOVER LEFTTURN * GANNG SUPPORT Only ‘One Voices Favor for - Present Rotary Swing at Intersections Here. Convinced that there should be but one left-turn .method throughout the city and that the standard Hoover left- hand turn system is the one most likely to get satisfactory results under all varying conditions, representative busi- ness ' men continued to evidence an overwhelming sentiment against both continuance of the rotary turn and adoption of the Harland modified turn. le there was not complete unani- mity, only one declared for the rotary turn and included in those who favor uniformity was William Mooney, post- master for the city of Washington, who ‘has under his control about 150 vehicles constantly plying the streets. “I believe there should be but one rule throughout the” city,” said Mr. Mooney, “and certainly we would not want to see the wide swinging rotary turn in effect at uncontrolled crossings as_that would merely. force those turn- ing left to drive across two streams of traffic, which would be the height of folly, s0 it seems to. me this eliminate the rotary turn. 1In the same manner, the modification suggested by Director Harland appears to me unworkable as & city-wide rule because there would surely be no reason for requiring a stop before turning left from the left lane of traffic at the center of the in- tersection if oncomingt raffic was such that a continuous turn could be made in safety, which leaves for consideration the standard Hoover turn, with which we are all familiar through using it at uncontrolled crossings and which, in the interests of uniformity, I should like to see adopted here as a city-wide regulation. In addition to its proven workability, another factor in its favor, as far as I am concerned, is that its use here will be a big step toward na- tional uniformity, the importance of which was so stressed by the traffic ex- perts called together by Mr. Hoover and with whose conclusions I am in hearty accord.” Has Advantage. Raymond Wise, general manager of the Chevy Chase Dairy, likewise ap- proved* substituting the Hoover left turn for the rotary method. “The left-hand turn indorsed by the experts of the National Conference on Street and Highway Safety, and which we now use where there are neither policeman nor lights, has & decided ad- vantage over the rotary turn,” declared Mr. Wise. “It certainly will be as safe as the ‘Washington’ turn, and there is no question that it expedites the movement of trafic. On the other hand, I believe that the modified turn, suggested by the Traffic Bureau, which would require a stop in the center of the intersection, whether traffic war- rants it or not, would be worse than the present situation. I think we should have but one rule all over the city, and that one should be the Hoo- ver method.” “The Hoover left-hand turn is the method which we should adopt in the interests of uniformity,” asserted E. J. Murphy, president of the E. J. Murphy Paint Co. “We should 'get in step’ with the rest of the country and certainly should have but one rule here in the city.” “There can be little if any advantage in shifting the point of stopping from the right to the center of the inter- section,” said L. E. Williams, vice presi- dent of Fries-Beall-Sharp Co.. “and for that reason I can't see that we should adopt the modification suggested by the Trafic Bureau. We need one rule for all over town, and I think thal the Hoover uniform turn is the one we ated that He found the greatest difficulty in Wash. ington driving was in the fact that | slow-moving vehicles did not keep to FLAT TIRE? Metropolitan 0764 Formerly Franklin 764 {LEETH BROS, £ 9250 Paity M. Sanday ® AM.-5 P ligible, GINGER TIGER °AE: NONE BETTER A. G. HERRMANN 750 Tenth St. Southeast Phone Lincoln 1981-1982 FOR SALE Beach Front Summer Home At North Beach Park, Md. section. Corner 'lot, 3 canoe: Fast_Step Big Twin motor. turnished. argain_for Those Who R Elrnow This_Property ACOMBER . STORAGE CO. 418 10th St. N.W. w Combpletely 4 B “If you tell me when,” laughed Mr. Hanna, “Mr. 90 MINUTES to New York Ships leave Washington Airport daily ut 9:30 A. M. Fare, one way, $25.00; round trip, $40.00 For Reservations Call Metro. 0534 Washington-New York Air Line An Open Book on Banking A Tot of things are consideration by the banker wheh people want money. Credit is to buy with a promise to pay. N Therefore a banke know something of acter” of the borrower—will new shades and screens. Finest workman- ip. . .. tor rices. Cidard ’Pfilnl Lin, 879 KLEEBLATT 4 Window Shades and Screens. ROOFg REPAIRED through another season of aks“and worry. Send for us Sound Toof. Wi Wfiny of Tepairs, Call Roofing 119 3rd St. 8W. trict 0933, KOONS Zotze, Ui an g PEACHES ARE RIPE "'AT QUAINT ACRES Thousands™ of baskets of choice. fruit. Open every day till 5 miles’ from the rict: & pleasan drive. Drive through Silver Spring. NG at Sligo. Sign &t farm entrance e Lin. 879 e only grening turn rigl ‘A Printing Service —offering exceptional facilities Tor a discriminating client {The National E:gltal Prus 210-1312 D 867 N he keep his word? taken into to borrow the ability capacity to And the banker wants to something of the “capi The banker wants to know something of the “capacity” of the borrower—is he capable of earning money—has he the P know ” of - the borrower—has he spent all he has earned or has he kept r wants to the “Char- capital? . When a some ' as his nest egg—his is believed to be honest—industrions and .thrifty — he possesses those qual good credit es which constitute a risk, % Credit once established should never be abused. 3 the t in accordance with the ot Wiy “Next to the failure to keep slow- Donaint, '3 think the.rotary’ et vurn 3 't 1s the outstan defect with cur traf- fic conditions,”" the doctor. “I think we should have but one rule here for all intersections gaverning the left turn and that it should be the method ap- proved by the Hoover conference.” On the other hand, inquiry at the Smith Transfer & Storage Co. disclosed entire satisf: with the left turn as iced here. It was ugrelenud hat sentiment there favored the rotary turn and was to any change. itiment in Wi is cl & early for substitution of the standard left turn recommended by the Hoover con- ference in place of the rotary turn now used, as well as for uniformity in traffic regulation, and has been evidenced in a ‘way that should dispel all doubt to the contrary.” Chari . Clark, general er of the American Automobile m‘wn' on basis of the poll being con- ducted by the District of Columbia di- vision of the A. A. A, and the senti- ment of business and civic leaders in ‘Washington. ‘Want Uniformity. On the question of uniformity in regulating traffic in the District of Co- lumbia, the A. A. A. poll reveals that 95.3 per cent of the 1994 resident motorists registering their sentiment favor uniform ‘traffic rules. - An even higher average is found among visitors and 99.2 per cent of 239 voting advo- cate uniformity. e USED and other light makes « 3 Sound Mimiory Deyeloped. Production of sound effgcts has pre- sented a difficult problem'to the radio broadcaster. At WBZ-WBZA there is sound mimicry is rise to sound -iv-s'uuzmu":z 't‘e'}! mine what it will prod microphons, uce over the LINDBERGHS SAFE |: INTWO ACCIDENTS == Plane Damaged in Newark Landing at End of Cross- Country Flight. Switzerland has a boom in construc- tion of motion picture palaces.e . dem financial position of the farmers, is causing great concern in that country. By the Associated Press. NEWARK, N. J, July 31.—Landing at the Newark Airport today on com- pletion of a transcontinental flight, Col. and Mrs. Charles A. Lindbergh experienced their second narrow escape from serious mishap in 12 hours. ‘The plane ‘went into a ground loop, damaging one wheel and the tip of & wing. Neither the colonel nor his wife was injured. Late yesterday, in landing at Colum- bus, Ohio, their last stop before New- ark, the plane started a ground loop | when a tire on one of the wheels blew | out. 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