Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-03-15
The Price of Gas.


Steadily. for many years, the cost OF
manufacturing illuminating gas has de-
creased with the perfection of processes
and the invention of methods for the
utilization of by-products. From time to
time in this District the consumer has
been given some measure of the benefit
derived from these reductions in cost in
the form of lowered price per thousand
cubic feet In some instances the COM
pany has appeared to make the reduc-
ton in price voluntarily, responding to
strong community pressure. In the other
cases Congress has compelled the lower
ing Of the rate, upon proof that the gas
was being sold to the consumers at in
ordinate profit.
No reduction has been effected for near
ly decade. The present price, fixed by
the act Of June &. 1896, and fully eff
fective in 1901, after one-stage reduc-
ton, is unquestionably too high. The
gas-using public believes, upon reason
ably certain grounds. that the rate can be
once more reduced without depriving the
corporation of the reasonable profit to
which 1t is entitled as the holder of the
franchise.
Congress is now considering three dis
ttnct propositions, all bearing upon this
question of the price of gas. One is the
creation of a public service commits
sion," charged with the duty and given
the power to regulate the price to be
charged for gas in the District, along
with the regulation of other public utility
corporations. Another is the repeal of
statute-held imperative by the lower
court-which permits the local gas COM
pany to increase it's capital stock upon
showing to the court that its property
holdings justify such an advance. A
third is to reduce the price of gas to a
point proportionate to the cost of pro-
duction plus reasonable profit.
1t may be in the public interest that
some form of public service commission
bill be enacted into law. 1t may also be
in the public interest that all question
as to the right of the gas company to
increase it's capitalization be answered
in the negative. thus cutting short the
long court proceedings. which are at
their present stage unfavorable to the
corporation. But whatever Is done In
those cases, the direct gas-reduction leg
islation is demanded. and in all fairness
1t should be enacted promptly, and it
SuOUiu oS uiOcI tdheu separately the
ether measures.
However the public-service commission
might eventually operate to the advan-
tage Of the gas consumer, it is plain
that his chances Of early relief by that
means are slender, SO broad is the gen.
eral question involved, and so weighty
are the interests affected. The repeal of
the stock-increase law, also, while doubt
less in the interest of fairer adjustment
OF the relations between the producer
and consumer Of gas, would be merely
the removal of. q possible future OBJ
stacle to reduction of the price of gas.
In view of the recent court decision the
stock-increase provision is no obstacle to
a movement for immediate relief from
the present burden of excessive charges.
The consumer, therefore, hopes that the
District committees of Congress will at
once take up earnestly the relatively
simple, uncomplicated question of how
much it actually costs to manufacture
and distribute gas in this District, and
what constitutes fair profit and q fair
price. Incidentally the energies of the
two committees should be bent to the
establishment of standards which will
ensure the consumer better as well as
cheaper gas.
The practical work for direct gas price
and quality legislation need not cause
any cessation of effort on the part of
those members of Congress who believe
that the stock-increase law should be
repealed and that all the public utilities
of the District should be brought under
the control and regulation of a presi-
dentially named commission. But expert
ence teaches that the way to reduce the
price OF gas is to push vigorously and
persistently the issue Of price reduction:
and not to postpone such effort until all
possible future obstacles to reduction have
been removed. or until a public service
commission bill, which may be in such
shape as to be opposed by all the public
utilities corporations. has safely run or
walked or crawled through the gauntlet
OF holly contested congressional legisla-
tion.