The Seattle star. [volume] (Seattle, Wash.) 1899-1947, 1918-01-11
State, NOT GAS
COMP ANY, HEADS
fight ON CITY

company today In entitled to earn
on io.0oo. 900 rate base. DIT. Bemis
declares that the rate base should
only be $500. 900.
Tho gas company attorneys asked
the public service commission to
consider tho 1914 valuation an q
closed matter. and fixed. but Or.
Besnis pointed out that other public
scrvce commissions and tho inter
state commerce commission have
adopted the policy Of rcctifying mis-
takes made In tho past for public
welfare.
DR.. Bcmis' conclusions on wheth.
er or not the gas company should be
permitted TO increase It's earning.
more than S,so.ooo a year by charE.
ing the consumers each a monthly
ready o-servc" charge OF rs cent?.
and an increase Of rs cents per thou.
sand feet. were formally submitted
to the commission Thursday.
The profits Of 1915. 1915 and the
first ten months Of 1917" he con.
ciuded. furnished a sufficient re-
turn on the true rate base. especial
~ In view Of the extent 10 which the
property has been built to meet fu.
ture growth OF the city"
The proposed ready .to-serve charge
Of rs cents a month to each Gus.
toner. he reportd. was without
precedent" and unfair to many Gus.
toners
He pointed out that operating CT.
penses no doubt would be ahnorm
ally high during the war. and that
a small Increase In rates 10 nil
classes OF consumers" might be al
lowed.
This Increase he limited to 10
cents per 900 cubic feet. which
would yield extra revenue OF
t1z5 900.
Possibly better than any Increase
In gas price" he said. would be n
reduction OF the required heat units
by five per cent This would require
much less oil. which IL now no ex.
pensive. and would increase the pos.
able production OF light oils"
The company experts contend that
they are asking increased revenue
Of from s24o. 900 to 1920. 900 in 1915.
and that this is only about ~ per
cent on their Investment, but that
they will be content with that.
DIR. Bemis contends that II their
revenue Is Increased si25,000 they
win be earning per cent on a true
rate base" with which they ought
to be content during war time, 50
when cost Of everything is abnorrn-
ally high.
Fine for State Lawyers-Yes?
Attorneys for the gas company,
public service commissioners and
their counsel. devoted all OF Thurs
day afternoons session to an unsuc.
cessful attempt to undermine the
testimony OF DR.. Bemis. and his
chief accountant. Andrew Sangster.
The gas company's chief counsel.
Fl. X. elise. with Henry I. Lee, the
corporations Chicago expert, mt his
elbow. exhausted his store OF cross
examination questions. directed at
DIR. Benis. in short order.
But Hance Cleland. the young at.
torncy for the public service com.
missioners. made long drawn out
attempt TO belittie the city's tech.
meal expert.
II had been brought out that DR..
BemIs has appraised public utility
properties by the dozen for the last
rs years, and is now engaged by the
government as advisor in the APP
praisal Of the value OF the railway
and telegraph lines. He is apprais.
ing the Chicago gas properties. and
rates thruout the country have been
based upon his recommendations.
But you've never worked for n
corporation. have your" asked Gle
land.
I've had n good many opportuni.
ties to do So" DIR. Bernis answered,
smiling.
We'll. you're not n practical on
ginecr, are your" asked the commiB.
sion's attorney.
II was OF the impression that the
a good many years was quite prac-
teal"