The Washington herald., 1909-04-27


The Washington GasIight Company has
voluntarily reduced the price Of gas from
81 10 % cents a thousand efet, has tardily
conceded a portion Of what the public
demands That viii not, however, defect
the purpose of the Chamber of Commerce,
as one OF the guardians of the civic IN
terests. to probe the question to the bot
tom.
The chamber has undertaken a search
ing investigation and will prosecute 1t ali
the more vigorously now that the corpO-
ration has partially recognized the justice
Of the public demand for cheaper gas.
II viii probe 10 see whether this sudden
and unexpected reduction of 10 cents does
not conceal actual facts Of high import
ance to the publIc-whether this partial
concession is not intended TO put the peo-
pie OF Washington into a state Of ae-
ceptance and acquiescence-
VIII Make No Difference.
II viii probe to find out whether the
gas company cannot derive a fair and rea-
sonabie profit at scent rate for gas
II such is found 10 be the case. the fact
Of the voluntary concession by the cor
porstion viii not deter the chamber s
representatives from making still strong
er representations 10 Congress next De-
cember
Il viii also b. on guard 10 see whether
the strength Of having made the rate
reduction. does not seek favors from Con-
gress az the next sessi0ns-favOrs in the
line Of increased capitalization and other
privileges which the District has been
fighting against for years.
These were the developments indicated
at tbs second gas hearing held by the
Subcommittee on public utilities Of the
Chamber OF Commerce last evening
There was evident a determination 10
continue the hearings without reference
10 the action OF the company.
Several speakers held out warnings
that the reduction by the gas company
was designed 20 ward OF the Chamber Of
Commerce hearings. or 20 cause such
reaction in the public mind that any
strong or united appeal 10 Congress at
the coming session would be impossible
The chief speaker Of the evening was
Representative James W. Good. Of Cedar
Rapids. Iowa. He is an expert on the
gas question. having been involv in
much litigation with public utilities. and
has A mass or telling statistics at his
command.
Experts Are Biased.
-One Of the great stumbling blocks in
r1,a "a -7eT, .~.,--- q, ,.7s-.-f.,-r,-. - -.
said Mr.. Good. "is that comparatively
few persons are qualified TO speak with
authority upon the question, and practi-
cslly ali of them are interested in the
question OF holding UP the price The
great difficulty has bee nin finding a man
who would tell you the exact truth as he
knew IT,
The speaker delved into an involved
mass or figures relating 20 the Mcmillan
syndicate. OF Michigan. which furnished
confidential figures to Commissioner Of
Labor Wright some years ago. Some ten
years ago il was declared. confidentiallv.
that il manufactured gas at 6 cost Of
= cents a thousand feet Cities Of the
class OF Detroit and Grand Rapids we're
in the syndicate. and may be taken as
furnishing a basis OF comparison
In reply 10 a question. the speaker
stated he did not know the exact rate
the companies were charging at this Pc
riOd. but believed it was neither above
nor below the average Of other cities. II
has been found, however. that the testi-
mony OF experts. at least. those presented
by the corporations. is biased and vitiated
The xperts make il their chief stock in
trade to suppress facts whenever these
initiate against the interests Of the cor
pOTstion which employs them
AS an example Of their tactics. Mr..
Good related his experience with an au-
thority who declared that the deprecia-
tion Of gas holder was per cent annu-
ally. in other words that Il would be
worn out and utterly unfit for service
after thirty-tbree years. Yet this expert
so eloquent on the subject Of depreciation.
which IS pet corporation method of mys-
tifying the public was hoist by his own
petard when he valued a certain gas hold
er at SS00e
Whe1 he did this. ne did not know it
had been IN service thirty-five years.
Neither did he know il originally cost the
corporation S7.50o His fav0rite theory
Of depreciation was smashed to smith
Greens.
Claims Were Conflicting.
'One point the representatives of the
public interests should h.sist upon. said
Mr.. Good, "and that is, there can be no
depreciation and appreciation at thesame
time. There can be no depreciation when
the corporation IS engaged in a tussle
about rates with the community. and
appreciation when it is fighting hard
for a physical valuation
P The speaker declared the Washington
Gaslight Company received a high return
from coke. a by-product. but apparently
did not chose to allow il to enter into
its representations 10 the public
The whole gas question revolves
around two propositions-the repair ac-
count and depreciation. When repairs
and extensions come out OF this pockets
Of tie public. instead Of the paid-in stocH
it IS time to protest and ask for a full
knowledge on the subject"
Among the suggestions made by com
mitteemen vas the fling Of an annual
inv ntOry OF the property Of public utili-
ties. the employment OF a District au-
ditOr for public service COZ pOration books.
and the appointment of a gas commits
sion. Or a public utilities commission. with
full power 70 fix rates.
The sugg gestiOn Of public utilities COM
mission. either independent of tn, Dis
trict Commissioners or made identical
with il. met with favor, and several
speakers asserted the ultimate solution of
the question would b reached only in this
manner.