The Washington times., 1918-03-13
GAS
RATE TO Be
FIXED SOON
FOR CAPITAL
By BILL PRICE

The gas rate for Washington con-
sumers will be fixed by the Utilities
Commission within a few days.
II will not exceed 90 cents per 900
feet as against IS cents, the present
rate.
The members OF the Commission
have been so overrun with work of
all kinds, including their duties a.
District Commissioners. that they
have not been able to confer at
length upon the gas data before them.
accumulated during the hearings and
since through figures presented by
their experts.
A week ago the data indicated that
the Washington consumer probably
would have to pay between 90 and ,e5
cents II the stockholders were to be
allowed reasonable returns upon their
investments. That was based upon
the idea that gas oil, which has risen
in price, would cost the gas company
Sl5 cents q gallon during this year.
OIL Price Down.
The company for the last few years
has had an advantageous contract.
which will. expire April 1, at a much
lower rate. The oil companies refuse
to enter into another contracts but
have indicated that the probabilities
are that s cents will be the price for
some time. The gas company has
notified the utilities commission OF
the result OF its inquiries. stating
that It will not be able to get gas for
less than 8 cents. Millions of gallons
of II are used, and the saving of y
cent a gallon means a big financial
difference in the cost OF making illu-
m'nating gas. That difference VIII
go to the consumer.
It will therefore cut the rate to Be
charged the consumer in the future
to not over 90 cents, and possibly az
low as 81 cents.
Questions Of Policy.
The Importance OF the decision upoa
gas Is that IL will establish the
policy the Utilities Commission will
pursue during the war as to the rate
of return to be allowed public utili-
ties in Washington. Sentiment In the
is strong that local cor
porations should bear a portion OF
war burdens along with the consumer.
In tho Potomac electric light rate
GASC OA last July INT NOllAlASSlo2A hA0N
q rate Cor electricity that would yield
q return 20 the company OF about
per cent on the valuation OF its prop
erty made BY the commission. The
company appealed from that and Is
lighting In the courts.
II - practically settled that no such
ratio OF return will be allowed the
gas company. which must be content
with considerably less. The indica-
tions have hnen that the commission
will * . rate TO conEume:s ShRt viii,
after paying all expenses sr the man
afacture. CO gas, allow the company
From this must be paid the interest
upon the bonded debt.
BPer Cent Dividesd Likely.
In 1917 the company paid In inter-
est upon bonds snd borrowed money
s23o,OoO 1t will have to pay fully
that much this year. Deducting for
interest expenses. there will be a bal
ance to go to the stockholders. Just
how much this will De the eomrnis-
sion must determine, but experts
figure It at la3s than 5 per can't.
In 1915 the company paid in divi-
dends to itS stockholders Se24, 900. In
November OF last year It cut the divi-
derds % per cent, and this year pro-
poses to pay out S46S.OOO, or about
1 clio per cent. Before the dividend
rate was cut the stock was selling at
about &c. The last sales have been
made at about 81.
The gas company claims that il has
already made a var sacrifice in the
reduction OF its dividend, which it
Will Eot increase this year. II can
maintain this dividend out OF saug
surplus accumulated in recent years
but prefers to pay 1t from earnings on
current business. II has told the COM
mission that IL must make prepara-
tions for 4 great increase in business
this year. especially next winter, anu
pleads that 1t should not be hampercd
in making arrangements
for the Increased nopuIaffcr hcrs