The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1918-02-05
Commission
WILL RESUME
GAS HEARING
ON THURSDAY
By BILL PRICE

Hearings by the Utilities Commits
sIon on the petition OF the Washing
ton Gas Light Company TO be permit
ted TO. increase its rates from &c
cents 10 S1.IO per thousand feet will
be resumed Thursday.
And there are Indications tod;.y
that the hearings will be far moro
lively than the first ones, for the
reason that experts OF the commis-
zion are to express their views as TO
the claims OF the gas company, and
that the questions to be. asked OF the
attorneys for the company will be
along more searching lines than here
tofore.
Commissioner Gardiner pursued a
line at the first hearings that prom
ises to be OF considerable significance
II continued at the concluding hear
1ngs. he then pressed closely for the
opinion OF the attorneys representing
the gas company as to whether Con-
gress intended, when fixing the eS-
isting rate, that the Utilities Gotta,
mission should undertake the fixing
Of other rates until the valuation of
the properties of the company had
bSen definitely adjudged.
The question OF the Commissioner
y
net believe that the commission has
any right to attempt to change ex-I
listing rates until II knows where II
stands on valuation. 1
QRestfon of vallatIoa. II
The question Of valuation Is now
ih the Supreme Court Of the Distric.
of Columbia The Utilities Commits
sion. after exhaustive hearings, de-
cieed that the combined proDsrtieS of
the Washington and Georgetown Gas
light Companies were valued at
S9.72I 1890. as OF December 81, 1919
There was agreement by the experts
OF the commission and of the com
pany as to the value Of construction
and equipment, but big disagreement
IS to other items. The company, for
instance, claimd that there should be
ndded to the value of the property
<2y312sS10 for the cost Of development
and S2.6o4.T64 for financing, both
items coming under the head of In
tangibles.
Commissioner Gardiner Is under
stood TO be determiAed to pursue the
same line Of questioning at the anal
hearings, bringing into doubt the
right Of the commission to FIX any
new rate until actual valuation ig de-
termined by the courts or agreed
upon by the commission and the gas
company.
Would Ihdeaaitely Delay New Rates.
Should Mr. Gardiner go into the
Hnsl deliberations Of the commission
with his opinion unchanged, and that
view should prevail in the body, the
petition OF the company would be
siented, pending adjudication of the
dispute over valuation.
Attorney Darlington. shrewdly fol-
Sowing the queries OF Commissioner
fsiardiner, has stated that the dispute
4 snay go through all the courts and
{ 5equire i've years TO determine, which
! Touio mean Bankruptcy to the COM
tpany. inasnruch as both attorneys hold
mat at the present rates to CON
sumers the company can not do bet |
4 yer than make operating expenses
itnder either the appraisement OF the |
commission or its own. This would |
leave nothing for interest upon bond |
ed debt or for dividends TO stock |
holders
attorney Minor has pointed out that
tnere has been great depreciation In |
the market values of both stocks and
bonds, since the company has been
conironted by extraordinary heavy |
expenditures.
knight have made Inquiries as to The !
rate OF return the company would |
get II Its petition should be granted. |
bringing out admission that the re-
turn would be more than IL per cent
on the commissions valuation. These |
aQertes nave shown a leaning toward |
admission that Congress has confer |
red upon the commission full power
10 change rates upon the valuation a.
OF the company in the courts. The
questions OF the two Commissioners
have been directed to ascertainlnE |
what might be fair rate to paw for
E11 20 a. to allow q reasonable re- |
turn 90 the stockholders.
The subject Of the valuation of the
property of the company Is naturally ]
= most important one in establishing |
q rate at which gas should be sold. II |
consumers have to pay for gas at A |
rate to enable the company to nav
reasonable dividends on its own valu-
alton the price of gas will have to be |
very much hiEher than now; IL they
have 10 pay on the Utility Commission |
valuation the rate would not be as
high.
Exceedingly Complex PRObIem-
An exceedingly complex problem to
be worked out Is that OF the Govern
Iaent's consumption Of gas. The pres
ant law gives the Government a rate |
of 20 cents per thousand feet, cents |
below the private consumer. The gas
company's petition for a uniform rate
Of CLIO includes the Government con- (
sumption also, the company believing I
the Government should pay the same
~ the private consumer.
But the commission and the attor-
geys for the company are both in |
doubt whether the commission has
sny right or power to fx a rate to |
Ehe Government, the attorneys point
sHg out that at present the Govern
Snent has appropriations only for the /
present rate of 20 cents. Should the |
commission, hold that II cannot touch /
The Government rate, that would |