Evening star., 1918-02-03
SAYS PUBLIC UTILITIES
HAVE FELT PINCH Of WAR
This Is Observation of J. H. Botz,
Former Statistician of District
Commission.

Public service corporations through
out the country have felt the pinch of
war prices, especially during the past
two or three months. Utility commits
siops in many states have extended re-
lief by allowing increased rates for
service. Gas companies. which are pay
ing enormously increased prices for
coal and oil. appear to have been the
greatest sufferers of the several classes
of utilities affected by the war
Such are the observations of J. II.
Botz. former statistician of the Dis
trict Public Utilities Commission, who is
IN Washington to aid the commission
in passing on the rate increase appli-
cations of the Chesapeake and Potomac
Telephone Company and the Washing
ton Gas Light Company
ODDLY enough. Mr.. Botz has engaged
IN but two Investigations since leaving
Washington, one of which related to a
telephone company, while the other
concerned gas company.
No Increase in Rates.
The telephone case grew out of the
effort of the Southern Bell Telephone
ana Telegraph Company to increase its
rates in Birmingham, Ala Dr. Ed
ward w. Bemis, who directed the val
uatlon of utilities for the District, was
retained by the city of Birmingham to
investigate the merits of the company's
claim. and, in turn, he retained Andrew
Sangster. former chief accountant for
the local valuation work, and Mr. Botz
to make the accounting investigation.
Their report to DR.. Bemis did not fur
nish basis for a recommendation that
telephone rates in Birmingham should
be increased, though it was found said
Mr.. Botz. that war conditions, as early
as last September, when the inveStiga-
ton was made, had Increased the COM
panys expenses, particularly in the
employment of operators and other
labor.
Leaving Birmingham. Sangster and
Botz went to Seattle, Wash. for Dr. Be-
mis-. The Seattle Lighting Company,
which was charging 81 thousand Gu
pic feet for gas sought to raise the rate
to s1.1o a thousand cubic feet and also
maintain a "readiness-to-serve" charge.
AS result of the investigation of the
TWO accounting experts. DIR. Bemis who
was employed by the municipality,
recommended to the Washington state
public service commission an increase
IN the gas rate to s1.10, but reported
against the company being allowed to
make "readiness-to-serve" charge
Gas Companies Hard Hit.
Gas companies have been hard hit
by the war" said Botz, because coal
and oil. the principal products used in
such big advances in price. In the west
we found that coalShad advanced from
90 to 75 per cent and oil approximately
80 per cent In many instances con-
tractors have been unable to procure
coal. and the companies have been
forced to go into the open market and
buy at the prevailing rates, while other
companies have had long-term con-
tracts for coal and oil to expire recent
ly which has forced them to buv AT
current rates.
w hile ! have made no investigation
OF street railways since leaving Wash
ington. utilities of this character also
have been affected by increased cost of
labor and materials. and, in some i'm
stances. appeals have been made for g.
cent fares"
MIR. Botz. who is one of the experts of
the firm OF SangSter & Matthews, char
tered accountants. of Chicago came di-
rect to Washington on completing his
work in Seattle and will be Joined here
February by Mr.. Sangster. He went
TO work yesterday on data submitted
by the Washington Gas Light Company
in support of it's claim that an in
creased charge for gas furnished in
washington is necessary if the COM
pany is not to operate at a loss Upon
the arrival of Mr.. Sangster both ac-
countants will go over the gas statistics,
and 1T is expected that they will testify
before the utilities commission Thurs
day of next week, when>the gas case is
resumed.