Evening Star Newspaper, August 1, 1929, Page 3

TRACTION COUNSEL FIGHTS QUESTIONS Commission and Attorneys Wrangle Over Hartman's Detailed Queries. __ (Continued From First Page) sion to order or to approve a_complete unification, which is just another name for a merger,” declared Mr. Bowen “Congress reserves th® right itself to | ny such plan.” oner Hartman then opened lack book. in which he has several hundred written questions, and proceeded with his examination of J. E Heberle, chief statistician of the Capi- tal Traction Co. Mr. Hartman sald| U any question which Mr. Heberle A ot able to answer might be an- swffed by John H. Hanna, president of 11 company, who is also present under FTesequestions thab Tiam going to| ow,” explained Mr. Hartman, “are | 1 lh\ nature of a breakdown of total figures which appear in your operating (‘\D(’nie.\ for 1928. First I would like 0 vhat yofl pay for life insurance 2 for Pmp pyes. “Befor{ Mr. Heberle answers that guestion.¥ interjected Mr. Hanna, “I| would lige to know whether the com mission, ‘intends to question the pro- priety 6f such payments?” Propriety Not Questioned. “No criticism is intended.” said Mr. Hartman. “I am not raising any ques- tion of propriety as to the charging | of these items to operating expense: “Well, if there should be an inten- tion to question the propriety of in- cluding them in operating expenses. put in G. Thomas Dunlop. counsel for the Capital Traction Co., “I will enter an_objection.” After Mr. Hartman had again dis- claimed that he was criticizing the propriety of such a charge he directed | his_question again toward Mr. Heberle. “I am unable from the records I have here,” replied the witness, * show the amount of payments for group insurance in the calendar year 1928." Argument Over Maintenance. Mr. Hartman—Do you intend to show that maintenance expenses have been normal in 1925 to 19282 Mr. Hanna—No: unless there is some evidence put in here to show that they were abnormal. Mr. Hartman—Was there not an ex- traordinary rainfall in August, 1928, amounting to about 10 inches more than the normal? Mr. Hanna—That is true. Mr. Hartman—Did you have unusual repairs on the smokestack of the Georgetown power plant in 19282 | Mr. Hanna—That is true, Mr. Hartman—Do vou intend to rove operating expenses in these years ave been normal? Mr. Hanna—No, but now_ that the | question of abnormality has been brought up I want to say that the an- | swer made to the question on mainte- nance expenses applies also to this question. Mr. Hartman—Did you have trouble from snow in 1928 on your Third street and Kennedy street line and substitute bus for rail service? Mr. Hanna—That is true; we have such trouble from time to time. Car Barn Expenses Cited. Mr. Hartman—Was there any in- crease in your expenses for insurance of 8 car barn because it was leased to the Washington Rapid Transit Co.? Mr. Heberle—1 can't answer that guestion. Mr. Hartman—As a matter of fact, | didn't this increase amount to about $1.000 a year? Mr. Hanna—If there was any such in- crease it was offset by the inérease in | revenue from the lease of the barn to the bus company. Mr. Hartman—Did you have any un- | usual damage suit expenses in 1927, esulting in part from settlements for an accident at Fourteenth street and | Rhode Island avenue, and in part from | an accident which occurred in May, 19242 Mr. Hanna—These figures are avail- able to the commission, but operating | expenses for injuries and damages are based on accruals. Mr. Hartman—But your accrual rate twas changed on account of this? Accruals in Excess in 1928. Mr. Hanna—It was increased because | the first year's accruals were not suffi- tient to meet expenses. Mr. Hartman—Were your 1928 ac- gruals for injuries and damages In ex- cess of 1928 expenses? Mr. Heberle—The accruals for that wear were $2,251.91 in excess of ex- penditures. Mr. Hartman—To what extent is Federal income tax included in op- erating expenses? Mr. Hanns—Not at all. Mr. Hartman—We will take judicial motice of the annual reports of the company to the commission from 1925 to 1928, Mr. Hanna—If the question contem- plates that we are hiding something I shall object to it. We are perfectly willing to give you these figures. Mr. Hartman—It won't be necessary. How do you allocate salaries of gen- eral officers as to bus and rail opera- tions? Mr. Hanna—There is no such allo- | eation. Maryland Taxes Tncluded. ‘Mr. Hartman—In your “system” fig- Wres do you include taxes paid in Maryland? Mr. Hanna—Yes. Mr. Tartman—Also taxes on leased Bines? Mr. Hanna—Yes. ‘Mr. Hartman—Are there any merger posts in 1929 expenses? Mr. Heberle—No. Il be glad to kheck that up. Here Mr. Heberle suggested that if E. Hartman wanted answers to all the SPECIAL NOTICES. G—ROOMS, 32 UP, IF YOU Samples furnished. Cail INUAL, MEETING OF THE STOCK- Tolgers of (he Potomac Insurance Company of the Sistrict of Conmbla. will be_held at fhe office of the company. 900-8 F_street porthwest, on Monday. Ausust 5. 1020, st ooks for the transfer of ‘stock " Be closed “from Uiy 24 1o August & dnclusive. o ANDER K. PHILLIES. Secretary. A ING Yo e paper. SEPT. aiso special lon D' s-ru-rs STORAGE, CO., INC., s dotn St Waai 2159, SFFECTIVE .vyu;‘ o 1030, 1 HAVE WITH: i om the firm_o 5 Morr ‘"rll:mu\:ndr-ukeu 'SAMUEL P. MORROW 5 st. n. GOING? WHER! Tell us when and we'll move your furni- T it at low phone call will save you time ng trouble: MN’ ATIONAL DELIVERY ASSN., OOFS REPAIRED through another season TS 9. d_for us 00d, Sound roof. W alty of repairs.” Call 13 3d 8t S.W. Bitkrict o KOONS Zizize Company. PEACHES ARE RIPE ' AT QUAINT ACRES Thousands of baskets of cholce. tree- yipened fruit. Open every day till 10 p.m. ©Only 5 miles from the District: & plegsant evening drive. Drive through Silver Spring. turn right ai Siiso. Sisn at farm entrance A Printing Service _ulhrlu' exceptional for a discriminating cl ghe National Capital P;:ss ¢ . W, mn' National 0650. THE PUBLIC THE EVENING BE DIMED. 2 hnnnvr.:k in the St. Louis Post-Dispatch. questions asked he would be glad if he | would give more detailed references, as it would call for a great deal of work | to check through the books of the com- | pany in search of small individual items. | Mr. Hanna interjected to say that the | cost of the work necessitated probably ! would exceed the amount of the item in question. Mr. Hartman said that it | | would mot amount to any more work |ceptable to the company, the commis- than he had done personally on the same figures. Mr. Hanna retorted sharply: “We're not interested in how | much you've done; we're only interested | in how much work we've done.” Duniop Enters Fray. Mr. Dunlop then intervened. “It seems to us,” he said, “that this Lne of inquiry refers to matters which couid | have been settled out of this hearing. It is a waste of time at this hearing, for which the company, and ultimately the public, has to p: Furthermore, it leads to the conclusion by the publi¢ that the company has not | been frank with the commission and that we have been endeavoring to cover up operating expenses as charges to capital account or what not.” “I accept the criticism” Mr. Hart- man said. examination from the bench, without instruction from counsel for the car- Tier.” Mr. Hamilton joined his colleague in protesting: “We are not instructing this commission as to how to conduct its examination,” he said. “But we think this line of questioning is preju- dicial to our rights and be}l)nd the au- thority of the commission.” Gen. Patrick then announced that a recess would be taken to consider the company’s criticism. After a long conference of the three commissioners, Chairman Patrick rapped | for order and then made the following announcement of the commission’s po- | sition: “The commission desires to state that the questions to which objection | has been made are directed to exhibits offered in this hearing. No question | that has been asked should be inter- | preted as insinuating that the Capital | Traction Co. has made any improper | entries in its account. Any such as- sumption is unwarranted. “Upon these exhibits the company s resting its case. If there are any in-| accuracies in the exhibits the commi: to ask them here. | “But I will conduct my own | sion believes they should be brought | out. May Withdraw Exhibits. { “If the company desires to withdraw the exhibits and correct them, the com- mission is willing that this should be ydone and will suspend the hearing for that purpose. If this course is not ac- sion feels that it must continue the | questioning along these lines for the present.” Mr. Hanna declared that the com- pany did not question the right of the commission to scrutinize its records, “Our records always are open to ex- amination by the commission,” said Mr. Hanna. “This exhibit of operating ex- penses Tepresents actual revenues and expenses in so far as we know them to | e so. We keep our books under the | serutiny of the commission. “We do not question the propriety of | the commission’s obtaining this in- formation. We object to the method the commission is following. We submit that these comparisons cannot be made | In the way that is being attempted. No man can answer questions about one No matter Where they may be, Wire Floral Congratulations BIRTHDAYS ‘ ” 1407 H St. Between 14th and 15th Streets Telephone National 4905 I to Tr II!II mnl system. delicious and appetizing summer beverage. the day will renew lost vitality due to the excessive heat. Buttermilb_ Churned Fresh Daily any other in Washington. STAR, WASHINGTON, specific item out of a thousand without an examination of the records. “If Mr. Hartman is not questioning the propriety of our accounting methods I don’t know what the purpose is. The only possible way is for the commission to draw up a list of questions and we will answer them. “We will not withdraw our !xhlblu We have no information to cause us to change any of them. If any direct criticism is offered we will meet it.” ‘Without further comment, Mr. Hart- man_entered again upon his serles of detailed questions. In nearly every case Mr. Hanna replied: “That ques- tion will be answered later upon exam- ination of the record.” Saving Through Unity Discussed. Saving in the operating expenses of the street car companies through joint operation and rTerouting without an actual corporate merger was a lively topic of discussion at the hearing late yesterday afternoon. The issue was joined between the commission and officials of the Capital Traction Co. when Chairman Patrick asked Com- missioner Hartman to take the chair and then asked Mr. Hanna a number of questions to bring out an admission that material savings and economies would result from unified operation of the local car lines. Before the questions were answered, however, there was a legal controversy over the right of the commission to ask such questions in the present hear- ing. Mr. Dunlop and Mr. Hamjlton, rcuniel for the company, sought to side- track Gen. Patrick’s inquiry along those lines. “We must object to consideration being given to such problematical questions as unified operation,” said Mr. Dunlop. “Unified operation now is legally impossible, and any evidence with respect to the effect of such op: eration would be speculative. even if unified operation were possible. We object on the ground that the ques- tions are immaterial and irrelevant. We are entitled to and must have a known basis.” | Hanna Answers Question Mr. Heberle was on the witness stand. | ‘When Commissioner Hartman overruled | Mr. Dunlop’s objection to the question about savings from unified operation the company heads conferred and Mr. Dunlop declared that Mr. Heberle was “not qualified to answer the question.” It was agreed that Mr. Hanna should answer it. Gen. Patrick then quoted Mr. Han- na’s statement before the House in the merger hearing praising the estimate made by J. Rowland Bibbins, engineer, on the effect of the proposed merger. Mr. Hanna on that occasion quoted Bibbins as estimating that the reve- nues of the merged companies would be sufficient to pay 7 per cent on the Have You seen them In our windows? Now’ D. - C., THURSDAY, $50,000,000 valuation asked, without in- creasing fares. “Do you still believe the same wo;?" asked Gen. Patrick. Hanna Explains Statement. “I have no reason to alter the po- sition I expressed before the House committee,”-replied Mr. Hlnnl ¥ dld not then and do not now own approval to his (Bibbin’ l) hl\ln's estimates.” In answer to further questions Mr. Hanna said he had testified before the House committee that the advantages of unified operation were “universally admitted.” He said he believed there “must be a complete unification of the three transportation companies then under consideration.’ Finally, Mr. Hanna said he would have to study the proposed unification to determine what savings would re- | sult from it, adding it was possible there would be “none whatever.” He said the result probably would depend “entirelv on the form of service given ! the public.' He admitted, in response to ques- tions, that the overhead cost would be less, and likewise the cost of operation, but sald the actual saving would de- pend upon the rurm of unification.” Dry IAW Wnrmng lt Canal. By Cable to The Star. BALBOA, Canal Zone, August 1. A step to remove one of the wrinkles | in the general scheme of prohibition law enforcement was taken yesterday by the Rotary Clubs of Cristobal and Colon. ‘The clubs adopted a resolu- tion requesting the Governor of the | Canal Zone to erect signs on Zone boundaries, rning travelers of the existence of the prohibition law. It was maintained that such signs would prevent some of the present friction and eliminate some of the arrests of uninformed strangers, particularly sea- men. Large Crowds at Bowie Carnival. BOWIE Md., August 1 (Special). A carnival for the benefit of the Bowie Volunteer Fire Department i this week drawing large crowds here. A ferris wheel and merry-go-round are the chief attractions. s the Time! Sale of Genuine ELGIN STRAP WATCHES *14° 50c a Week No extra charge for credit! ‘“‘And tHRt ain’t all!” We also offer a collection of fine sports strap watches at the ame price and S just another reason why Chestnut Farms Buttermilk is superior It is highly recommended by phy. cians, not only for its joml value, but as a general tonic for the whole Coming to you ice cold—fresh from the churning, it is a most A glau frequently during it—a note in your bottle tomorrow will assure you gvumg this superior Buttermilk with your regular milk delivery dai trial will convince you of its rightful place among-our Highest Quality Jelected as the Dairy Products A few days’ .’I)aago md??ated 100% IA&W MW 4 AUGUST 1, 1929, NAVY MAKES TRANSFERS IN DEPARTMENT KNOWN Officer in Charge of Exhibit at Seville Sent to War College. Naval orders made public today at the department, show that Lieut. Comdr. John M. Ashley, now in charge of the Navy exhibit at tne Ibero-American Exposition at Seville, Spain, will be de- tached from the office of naval com- munications at the Department about August 31, and will go to the Naval War College, Newport, R. I. Lieut. (junior grade) LeMerton E. Crist, jr., and, Lieut, (junior grade) Harold D. Krick, will be detached from the Naval Academy at Annapolis, Md., and will g0 about August 23 to the University of Michigan at Ann Arbor, Mich, Comdr. Charles W. O. Bunker of the 3 | Medical cords, winl be 4 3 etached the Washington Naval Hospital I’;:\?: September 5, and will go on duty aboard the U. S. S. Relief. Comdr. Hervey B. Ransdell of the Supply Corps, will be delached from the U. S, S. Florida about September 20, and will come to the Army Industrial College here for a course of study. A robin is hatching four eggs in & nest in a Bangor, England, schealroom. —— Store Closes at 2 P.M. 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