Evening star., 1933-11-10
GAS CONFERENCES
TERMED ILLEGAL
Citizens Federation Counsel
Moves to Strike Out Land
Value TeStimony.>

August G. Klein, reproduction value
expert, today testified as to private con-
ferences held with engineers for the
Public Utilities Commission prior to the
start OF the open hearings In the valua-
tlon case OF the Washington and
Georgetown Gas Light Companies.
The conferences, he said, lasted from
March to June 21. Mr. Klein said
that no stenographic notes were taken
OF what was said at the conferences. To
have done this, he said would have
taken yea. The conferees. however,
did reduce to writing certain state
ments made of certain methods and
principles"
Law Violation Claimed.
The conference method is under at
tack by William NICK Clayton of the
Federation of Citizens Associations, who
claims 1t is a violation of the law re-
curing public hearings. He moved to
strike out all the land value testimony,
and the commission overruled that
motion. In the land value conferences,
however, a stenographic transcript was
Kept. The commission has not vet
ruled on Clayton's motion to let this
transcript into the public record.
Prior TO the conferences, Mr.. Klein
testlhed, the company and commission
engineers had checked and rechecked
frequently their inventories of the fixed
physical properties of the companies
one against the other. In all of their
checks each side turned up with items
which the other had omitted. These.
he said, were appreciable in amount but
not substantial.
Difference Is S4,732,97O.
At yesterdays session, the introduc-
ton of exhibits by Mr. Klein stepped up
the difference between commission and
company figures established thus far
to S4,732970. The figures are not COM
plete. They include only land and
items in the reproduction cost inventory.
The commissions estimates add up to
S2O,9l4,863 and those of the companies
to S25, ,647,833.
The other items to come later are
depreciation, as to which it is said the
two sides are hopelessly at variance, and
certain 1ntangibles. such as going con-
Germ value"
Mr.. Klein told at yesterdays session
now he and his busy engineers inyen-
toried the properties. They counted
bricks, measured pipe and dug holes to
md out the amount of foundation. As
to some OF the equipment, they looked
at 1t and entered it in the books. This
ne called examination by visual in
spection." When they came to pipes
covered with asbestos, they stuck pins
INTO the asbestos to see how much was
covering ana now much was pipe.
Traced Pipe Lines.
There were some items of propertv
which, according to MIR. Klein, were mot
susceptible to visual inspection" Pipe
buried underground, as most of the
companies mains and service pipes
naturally are, had to be entered from
the books and records of the company.
But they checked this by noting each
time pipe rose to the surface" to see
If it matched with the records.
There are some items in the reproduc-
ton cost exhibit, however, which could
not have been counted, measured, or
estimated by sticking pins. These are
entries such as interest during con-
struction" and Organization expense"
Mr.. Klein's testimony will reach these
later.
Mr.. Klein is chief mechanical engineer
OF the Stone & Webster Engineering
Corporation of Boston. He testified that
on June 16, 1882, the firm had been
engaged by the local companies under
contract to render all engineering
services, including advice on rate struc-
lures
In answer to questions put by William
NICK. Clayton in discrimination, he
said that his firm had been informally
consulted on the Sla per cent rate re-
duction made last year, but that they
had not given the companies any formal
advice.