Evening star., 1912-01-27
VALUATION OF PROPERTY
Information to Determine Basis Of
Future Cost Of Lighting.
COMPANY'S SHOWING FOR 1911
Commissioners Cite Exhibit in Con-
tention for Further Reduction.
Analysis to Be Made.

trict should furnish an auditor to examine
the accounts of the company as a pre-
limnary to negotiations looking toward a
further reduction in the price of gas,
Joseph Letter, president of the Washing
ton Gas Light Company, today notified
the Commissioners that he will furnish
them with a statement of the valuation
of the property of the company, in COM
pliance with request made by the Com
missioners.
tion of the statement may require con-
siderable time. The Commissioners be-
lieve that when they have been provided
with the desired information they will be
qualified to properly review the opera
tions of the company last year, on the
basis of the eighty-fve-cent rate and de-
termine whether the company can afford
to still further reduce the price.
1t is probable that a conference between
the Commissioners and representatives OF
the company will be arranged after the
District heads have examined the state
ment being prepared for them.
company's Financial Exhibit.
Calling attention to the fact that the
financial report of the company for 1911
indicated a net increase of 10 per cent
under the new and lower rates, the
Commissioners. in letter sent to the
directors OF the company last Wednes-
day, suggesting a further reduction in
the charge of gas. requested that they
be placed in possession of evidence
which would enable them to determine
clared during 1911, was a reasonable
return upon a fair value of the property
employed in the conduct Of the COM
pany's business.
a conference held between themselves
and counsel for the company. December
8, 1910, when an agreement was reached
that the price of gas should be reduced
to 85 cents, and that on and after Janu-
ary l, 1912, the company should make a
further reduction in the price. provided
an analysis of its accounts for the year
1911 should show that 1t could AFFORD
to do so without sacrificing its legal
right to q reasonable return upon the
fair value OF the property employed in
the operations Of the company.
According to the Commissioners letter,
it was further agreed at the conference
that the company should submit to. the
qualify them properly to review the COM
pany's operations and give them such
access to it's accounts as they might
think necessary for purposes OF verifica-
ton.
Wanted Audit by District.
Replying to the communication of the
Commissioners, President Letter suggest
ed that the District heads furnish an
auditor to examine the company's ac-
counts as first step toward the carry
ing out of the understanding reached at
the conference In December. 1910.
when this is DONE" stated Mr.. Letter,
1--WE will incorporate in such report to
you the basis of valuation established by
the examination made at the instance OF
the Department Of Commerce and Labor
upon which we base the payment of the
present dividend"
The suggestion that the District audit
the accounts Of the company did not
meet with the favor OF the Commission
ers, who replied to Mr.. Letter as fol-
lows:
Replying to your letter of January "a,
1912. suggesting that We send an auditor
to examine your accounts as first step
toward carrying out the existing under
standing between you and the Commis-
sioners with reference to the price OF gas,
the Commissioners have to slate that
they are quite willing. tentatively, to ac-
cept the statements you have furnished
as a basis for proceeding, in accordance
with the understanding toward de-
reduction of the price of gas.
Request Renewed.
I'VE therefore renew our request to be
furnished with such facts and figures
relating to the fair value of your prop
erty as will enable us properly to review
the whole question. Without knowledge
of the value of your property employed
ha m nf ho li<
obviously unable to judge as TO what
would be reasonable return thereon"
The Commissioners today expressed sat
isfaction that the company officials had
decided to submit them with statemen,
of the valuation Of the property of the
company, announcing their intention tc
give the matter immediate consideration
as soon as they are in possession Of the
statement.