The Washington times., 1929-02-02
JULIAN PIERCE OPPOSES
REPRODUCTION COST VALUE
) OF GAS LIGHT COMPANY

open letter No. to Ord Preston, President; r. D..
We0Uer, Vice President; C.. c, GIoUer jr, j. NJ.
Green, Joseph Letter, William King, E. F. Stell-
IUagen, and other stockholders of the Washington
: Gas Light Company.
have received the office of the Washington Gas
Light Company proxy form for the annual meeting of the
stockholders called for IL o'clock February 1929.
The proxy form suggests that may appoint Ord Preston
Robert d. Weaver and James M Green to be my subst
tute at the annual meeting Ito and vote" for ION
any and all questions matters which may before
the meeting.
Proxy System Condemned
must respectfully decline to appoint these men, any
meeting
Citizenship in industrial corporation carries as much
munty.
We stockholders would oppose subversive of American
political institutions the proposal that citizens might
anenate their political voting by sending substitutes
70 the polls on election day.
But citizens in an industrial corporation we tolerate
Snd even approve similar alienation of similar rights
insist That is the patriotic duty of all stockholders
exercise to the fullest their rights of control the
panles they own and from which they receive profit
put let me return to the Preston Green proxy
r: preston is President Mr. Weaver is Vice President
Company.
and the other directors names are given at
the beginning of this letter. constitute the of
the company
From my point of view they should not be given proxy
! votes to approve their administration
Moreover believe the stockholders should not reelect
the as the management we hedge them about with
restrictions designed to carry out our views
1nese OFFICIALS of company recently instituted pro-
ceedngs before the Public Utilities Commission for an in
system. e ~ ~ 1e
The increased valuation sought was the initial step in
Nplan to raise the price of gas to the consumer
J, Reproduction Cost Value Unjust
Onr officials planned to do this by using the "eproduc
lion or replacement" cost theory of determining the
OF our company for rate making purposes instead of
} the ne prudent investment" theory.
Wnefe the prudent investment theory is used tho voa
he plant Is what it decenty properly cost-that
" say tne money the stockholders have actually and
On this prudent investment the stocLbold
1alr and generous dividends. ~ rece''e
Under the reproduction theory the value is what IL would
TO construct and equip the plant today under
The reconstruction theory gives the Stockholders tho l
coect from
stocknoders fair return millions
n been = N"-~ WHICH, may never
expect to receive gas consumers am sure are wlno
Ia return on the money have actually in the
DO not ask, and have moral
give me return money have -
OF the valuation proposal initiated and
our officials apparent when "
The current valuation of believe approximately
$17000000 - Ff'
During the proceedings Public Utilities Commission or
officials hired reproduction theory
should build today producing and disrutng
system buy equipment throughout
Seventeen Million Fiction Dollars
made by the difference
for plant during than
would pay. for it today if we built it
Our officials have attempted legal right to compel
the consumers to the stockholders these
If the Public Utilities Commission persuaded to accept the
figures presented by the reproduction experts the
price OF will be raised 25 per
$4,000 Cost Becomes ST. 900 Value