The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1914-04-30
Preliminary Report
And Accommodation Made to Com.
mission by Commissioner
Ogden.

The following is the full text of the
preliminary report and recommenda.
tlons or Commissioner Ogden to the
IuIl commission. and upon which the
hnal order OF that body is based.
To the Public Service Commission 81
West Virginia.
The object OF this Investigation was
TO obtain sufficient Information. so
mat the commission could determine
I'd whether the proposed readiust.
ment and increase OF rates by the cas-
companies was justified. and on In
the proposed new rates were moi fus.
tlned by a prima faCie showing on
bthaH OF the gas companies to deter.
nine what would be a fair and Just
schedule Of rates for the several dis.
tributlng points served BY the several
gas companies under Investigation.
The holding company. the Manufac.
turers Light and Heat company. un.
dertook to Justify their proposed new
rates by bringing before the commits.
sion an deliberately prepared state.
ment showing the outstanding CAM.
tai investment of the holding com.
pahy 1.-THE Manufacturer Light and
heat company. treating the entire
consolidated business as unit. They
ing this evidence. This evidence
tended TO establish GJ that the total
capital investment Of the hOIdinn
company. as carried upon the hooks
.oi the company. Is $2S. 6js .G53 90. This
includes all the moneys invested hy
me company In the stocks and bonds
Iot other companies. and also It's own
Investments in plant gas territory
and other Items ~ Taking a. tho
total capital Investment of the com
pany. the outstanding capital stock
or 80 600 600. and the outstanding
aggregate o. S27.2fO. 900
Assessment Values Unreliable.
80 mat the total capital account
90 determined b. an alleged inventory
and afpraisement made by T. o Sui
Iivan. general manager of the com.
pany. on December en-. 1912 was s3i
ls3. t0o11 This amount fs claimed
to Do unfair % the company because
10 does not Include the cost OF orrauf.
Lstion. bonuses for charters. value OF
franchises in towns and cities and
certain intangible assets
90 Taking aa a basis the returns
N several Gas Companies for PURPOSES
of taxation in the three states. the
Iolal capitnI Investment aggregates
81 ESQ. 7bs -. made up aa follows
West virginia ....... g. 300 600 00
ohio ........... f0g1 100 900
Pennqylvania ....... S5S3.5g9 IS
These valuations we're fvcd by the
taNassessinT bodies. and in the case
on West virginia was approved hN tho
Circuit Court ~ Ohio county on az.
a. result of crogs-examfnation
however. and TrobinE into the details
OF these figures. exhibits and accounts
Dr. appears that each of these four as
sumnd basis ~ valuation of invest
mont are unreliable for the following
reasons
First. Tho 0ufsfardfrr rsntfaf
cock h1e been arrived zoo hy mpaua
or euccneeiVo rrurrHul1nfiona and con.
soIidatiorr Iu which tho capital stock
was unWurrInfably Increased OF wat
cred without reference f0 tho value ~
% taneihln or physical rr0perfipe %
thc several consolidating coruarfe.
Nccpui That fho capital account
oI inr company carried upon fs books
d. inaccurate re statement 0F
moneys actually paid uuf and Invested
in he purchase and acquisition of tho