Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-12-06
The Gas Report.

Little of value, for the purposes of pres
en-; inquiry into the Righteousness of the
existing rates charged for gas in the
District, Is to be found in the first an
nual report Of the Washington Gaslight
Company, just submitted to Congress.
In the first place, it is eleven months old.
The act of Congress requiring its sub
mission was not enacted until March
last, and this is the first opportunity the
company has had to respond. Consequent
~, this report treats of conditions of a
year ago, whereas, the next report, pre-
sumably submitted between January l
and February / next, will deal with con-
ditions of the calendar year now closing.
What Congress finally determines in the
way of gas rate reduction will doubtless
be based upon the condition then re-
ported, instead of that disclosed in the
statement just spread before the COM
munity.
Tho report itself is disappointing in
that it's details are confused and unillu-
mnating. In all but one respect how
ever. 1t complies with the strict letter of
the law. The company fails to submit
a statement of the actual cost, and also
present value of the property used in the
these items are the subject of judicial
Investigation is unacceptable. Congress
IS not concerned with any secondary pro-
: dinSs which may have been under
lken by the gas company to secure adj
litioral stock issue rights, save so far as
such a move may serve to hasten de-
termination of the question of gas rates.
II cannot be eXpectfd to accept the plea
that ,..e gas company does not know
h, value of its own properties. 1t does
not ask for judicial definition of the
value of those properties. 1t asks the
company what its properties are worth,
and 1t should be given what it seeks, in
the best available terms.
This Is an important matter, not to be
lightly passed over. The company is now
seeking the privilege Of increasing its
capital stock, under a recent act of Con-
gress In order to do so it must estab-
lish before the court certain conditions
warranting, in the Judgment of the court,
TIL. extension of the capitalization. Mean
while, a belief is general in the District
that the present rates prescribed by law,
for the sale of gas are xcessively high,
and determined effort is to be made to
secure the necessary reducing legisla-
ton from Congress at this session 1t
Is just to the stockholders, present and
prospective, that the rate to be charged
In the future should be known in ad-
vance Of final action by the court. The
court. In short, should have the benefit
of all possible information relating to the
conditions which will affect the value of
the stock which it authorizes the COM
pany to issue. The only logical order of
procedure is for Congress to act first,
and the court later. But Congress can
not act intclligently until 1t obtains a
full, accurate statement Of the present
property Of the company, and has had
chance to verify the accounting. To
postpone the submission Of this informa-
ton until after the court has acted, there
fore. is for the company not only to ig-
nora specific requirement Of the law.
but tends to block the process of orderly
legislation.