Evening star. [volume] (Washington, D.C.) 1854-1972, 1917-12-18
EXPLAIN WHY RAISE
in GAS IS ASKED FOR
Company Representatives Are
Heard by Scarcely Dozen Cit
liens Before Commission.
OPERATION COSTS UP

Contrary to expectations of a big at
tendance and a general protest against
the application OF the Washington
Gas Light Company to increase the
price of gas in Washington, scarcely a
the company explain the reasons for
the application at public hearing be-
fore the public utilities commission in
the Municipal building today. Not one
raised voice in opposition to the pro-
posal to raise the price of gas in Wash
ington from IS cents, the rate fixed by
Congress. to S1.1O per thousand cubic
feet.
Except for reservations made by
James F. Oyster, representing the
Board of Trade, and Evan Fl. Tucker.
the Northeast Citizens Associations OF
the right to submit briefs later there
was nothing to indicate that the public
is going to say much one way or the
other to help the commission in ar
irving at a. determination of the ques-
ton.
Why Gas Rates Are Raised.
BENJAMIN s. Minor and James ]. OAR
lington. counsel for the company, I'M
qualifiedly stated that it is a question
of charging n higher price for gas or
not being able to earn operating ex-
penses. much less pay dividend to
those who have invested in the stocks
and bonds of the corporation.
At the outset the question Of the val
by the commission. which is now be-
ing contested in court on appeal, be.
came big point in the argument
Commissioner Brownlow pointed out
that the higher rate sought would pay
return of Tx per cent on the valua-
ton established by the commission and
return of z " per cent on the valua-
ton claimed by the company.
Attorney Minor replied that it was
not a question of attempting to justify
merely of the necessity of increasing
the rate toes1:1o II the company is to be
able to continue in business.
Commissioner Gardiner questioned
whether. under the law Of Congress
fixing the. present price of gas at IS
cents the commission has any author
ity to change the price except on the
basis Of a valuation that finally has
been sustained in court.
This point was met by Attorney
Darlington, with the statement that the
commission must presume it's valua-
ton to be right until it is set aside
in court, and that it is empowered to
make any change in the rates that is
demanded by the equities in the situa-
ton.
In this connection. Mr.. Darlington
said it might be five years before there
is final adjudication of the valuation
question. while the company now is
up against the absolute necessity of in
creasing its revenues If it is not to OPP
crate at loss.
Increase Operation Costs.
Estimates showing the increased cost
of operation for the coming year were
submitted. oil and coal being indicated
as the items which will call for a
greatly increased expenditure. Attor
ney Minor declared that 1t Is now cost
ing the company 10 Il cents per thou
sand cubic feet to manufacture and de-
liver gas, whereas the reduced rate at
which the product is delivered to the
government gives the company an ay-
erage return of only 1917 cents per
thousand cubic feet.
Increased consumption. he said. had ex-
hausted a supply of oil bought at the
rate of 8 cents gallon, and necessi-
tated the company going into the open
market and buying about three million
additional gallons of oil at the rate of I
cents a gallon to meet the demands of
the current year. Since the fling of the
application to charge a higher rate.
which anticipated seven-cent oil during
the coming year, the price of this COM
modify has advanced to cents, he as
serted
Robert o. Luqueer, consulting engi-
neer. of the engineering firm of Hum
phrfes & Miller, and c. r. Cranmer of
the American Audit Company testified
as to expenses shown by the company's
books and estimates of the cost of oper-
alton during 1918. The commission an
nounced that ii would consider the data
submitted and that another hearing
might be held.