Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1916-09-19

in the communication Of said Commit
tee and under the conditions an,
terms of said communication. Blu
realizing the good purposes Of sa.,
Committee and the desirable objecu
to be attained by 1t
BE 1T FURTHER RESOLVED
that it is the sense and the wish o
this Council to forward the efforts o
said Committee as much as Is within
its power to do and that the Cit!
Council and the various department.
Of the City are more than ready, anx
ious and willing to cooperate will
said Committee In its work and t.
furnish 1t whatever of aid and mean!
which may be in their power SO to do
BY w. 8. Jardine,
James C. Dahlman,
Mayor and President Of City Council
Adopted July 81, 1915.
Attest:
Thomas J. Flynn, City Clerk
By H. M. Primeau, Deputy"
After this action by the City Coun
Gil, and in response to the request
Of our Committee, the Omaha Elec
trio Light and Power Company &C
cepted the good Offices of the Com
mittee In the following communica'
ton:
J. A. Sunderland, ChairmAl,
Special Committee on Electric
Light and Power Rates,
Commercial Club.
My dear Mr.. Sunderland:
Responding to your verbal request
Of yesterday that l put In writing the
Company's acceptance Of the good Of
fees rendered by the Commercial
Club through its President and your
self sumbit the following as my un'
Outstanding Of the plan and procedure
by which will be determined,
l. The amount of money actually
invested In the property Of this. Com.
pany upon which it is entitled to earn
fair return.
2. The amount of profit to which
we are entitled as fair return upon
the investment.
8. The rate which will produce the
fair return in question.
Our proposition is that your COM
mittee shall engage the services of
an audit firm of the highest charac.
ter Whose report will be accepted
without question by financiers at
home and abroad) which company
shall proceed as promptly as may be
to make q complete audit Of our
books from the beginning Of the Com.
pany's existence down to the present
time for the purpose Of showing con-
the total amount Of invest
ment upon which this Company Is en-
titled to fair return. While the Sc.
lection Of the audit firm Is left entire
ly to your committee this Company
will pay for the audit and all business
incidental thereto.
While the audit is being made we
would like to have the committee
take up the question What is q fair
On this we would like to be
heard.
When the audit is complete and the
of fair return has been
agreed upon we would have the com.
mittee secure the service of rate
expert Of the highest grade who shall
report to the committee the form Of
\ rate schedule which, will produce
,he agreed-upon fair return upon our
This expert should not
be one who is engaged In priyat
practice or has any affiliation which
would prevent his being entirely ju-
iicial in his study and final opinion.
We would prefer that he would be
me of the experts Of the Wisconsin
Railroad Commission for the reason
hat the Wisconsin Commission is the
,nly regulatory body In the country
hat has made complete and scien-
ific study Of the true basis of rate
schedule.
The costs Of this rate investigation
and all other costs in the case-w.ll
,e paid by this company.
Grateful to the Commercial Club
nd to yourself and your associates for
he fine public spirit shown In this
matter and assuring you of
complete cooperative willingness
IN, with great respect,
Sincerely yours,
Geo. H. Harries,
President"
In the discussion between repre-
entatives of our Committee and the
lily Council, it developed that the
'ity Council did not feel free to bind
self in advance to adopt the report
nd recommendation Of the Commit.
&C., being without legal power so to
o, but that it would welcome the re.
ults of the Committees investiga.
ions.
While the Electric Light Company,
/ accordance with the original agree
lent made by it, and acquiesced in
y the City Council, has furnished all
I the funds necessary to carry on
he work of the Committee, the dis.
osition of such funds has been
holly within the power Of the Com
littee and no suggestions have been
ffered by or received from the Elec.
lie Light Company, as to the expen.
iture Of any part of same.
The Committee secured an analyti.
al audit of the Electric Light Com.
any's books and accounts covering
ne period from August 81, 1889 to
une 80, 1915. Haskins and Sells,
,e auditors selected by the Commit.
,e, have an unimpeachable standing
the United States and
Their countries. Their selection was
,rmally approved by the City Coun.
il and by the Electric Light Com.
any. The auditors had access not
My to the books and accounts Of the