Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-01-24
Commissioners Send Pointed
Letter to Gas Company.
CHARGE BROKEN FAITH
Analysis of Accounts Said to Have
Been Promised January /.
MOVE TO GET CHEAPER GAS
Another Reduction Agreed Upon If
85-Cent Rate Last Year
Showed No Loss.

Requesting that they be put in pos
session of evidence which will enable
them to determine whether the divi-
dend declared by the Washington Gas
Light Company during 1911 was a rea-
sonable return upon the value of the
property employed in the conduct Of
the company's business. the District
Commissioners this afternoon sent a
lengthy communication to the directors
of the company. which may lead to a
further reduction in the price of gas
sold in the District.
The Commissioners call attention to the
fact that, at conference held between
themselves and counsel for the company,
December s. 1910. it was decided that
the price of gas should be reduced to So
cents a thousand cubic feet, after jan
uary /, 1911, and that the company
should, on and after January 1. 1912,
make a. further reduction in the price,
provided an analysis OF it's accounts for
1911 should show that it could afford to
do So
Failed to Submit Statement.
1t is further stated that the company
agreed to submit to the Commissioners
statement which would qualify them
properly to review the companys opera
lions.
In their communication the Commits
sioners state the financial report of the
| company for 1911 indicates that lis profits
have increased nearly 10 FER cent under
the new rate. but that the company Of
ficiaIs have failed to keep their agreement
with the District heads in the matter OF
giving them access to the company's &C
counts for the purpose of verifying the
figures contained in the report.
The communication suggests that the
desirability of another conference with
the Commissioners may suggest itself to
the company officials.
Text Of Communication.
The communication is as follows:
December s. 1910, conference was
held between the Commissioners Of the
District of Columbia and counsel for your
company in pursuance of which the board
Tof directors of your company passed q
resolution reducing the price of gas to
So cents a thousand. from and after jan
uary /. 1911.
The understanding reached at this
conference covered, among others, the
following items:
Il. That the price of gas should be
reduced as above stated.
"2. That the company should, on and
after the first day of January, 1912,
make further reduction, provided
year 1911, operating on an 85-cent ba-
sis. could show that the company could
make further reduction without sac
rificing it's legal right to reasonable re-
turn upon the fair value of the property
employed in the conduct of it's business.
The company further agreed that it would
make and submit to the Commissioners
such a statement as would qualify them
properly to review the companys opera
tions, and give them such access to its
accounts as they might think necessary
for purposes of verification.
Referring to item No Q above, it will
be observed that the understanding con-
templated further reduction by you,
beginning January l. 1912, provided an
analysis of your accounts for the year
1911, while operating on an eighty-five-
cent basis, should show that You could
make such further reduction without sac
.rifcing your legal right to a reasonable
return upon the fair value Of the prop
erty employed in the conduct of your
business.
Quote From Company's Report.
Inviting your attention to the third
page Of your financial report for the year
ending December 81, 1910, the Commits
sioners observe that your net corporate
| income for the year prior to January 1,
| 1911, was $457, 1861, whereas it appears
from page three Of your financial report
for the year ending December 81. 1911.
that your net corporate income for the
year prior to January 1. 1912. while you
have been operating upon an eighty-five-
cent la sis WAS $431.O10N
1T thus appears that your net corporate
income. or. in other words, the profit
from your operations, has increased near
ly 10 per cent under the new and lower
rates.
IF we look no further, it appears that
you were not only able without loss to
reduce the rate to eighty-fve cents on
January 1, 1911, but that you have actu-
ally increased your profits by or while SO
doing.
.Inasmuch as you made a considerably
increased profit at the lower rate. it sug-
gests itself that the company might well,
by further reduction in accordance with
the terms of the understanding above
quoted, benefit the public without loss to
the company, and certainly without
trenching upon the constitutional right of
the company to earn fair return upon
the fair value of the property employed
for the convenience Of the public; unless.
indeed, 1t shall appear that during the
year 1910 and previous years the company
was not earning such fair or reasonable
return.
'.In other words, the Commissioners
are not qualified properly to review this
matter unless acquainted with the fair
value Of your property.
Evidence Is Requested.
/. 1.-THE Commissioners have the honor to
request, therefore. that they be put in
possession Of such evidence as exists to
enable them to determine that the divi-
dend declared during the year 1911. to
wit. 1924, 200, was or was not the reason
able return contemplated in the above
mentioned understanding.
perhaps the desirability of another
conference between your officials and the
Commissioners will suggest itself. In
that event the Commissioners will be
glad to arrange for such conference at
an early date
STICK BY ROOSEVELT.