Evening star., 1918-02-07
GAS RAISE
CALLED NECESSARY
Testimony Given Before Pub
lie Utilities by J. H. Botz,
Former Statistician.
AVERAGES 86.287 CENTS

| The Washington Gas Light Company
must receive an average rate Of S6.2S7
cents per thousand feet of gas sold II
by the war and pay a 7-cent return on
it's investment.
| Testimony to this effect was given
before the public utilities commission
today by ]. H. Botz. former statistician
| Of the commission. at the resumption
| Of the hearing on the gas company's
application to advance the price of gas
in the District from IS cents to $1.1o.
Both Mr. Botz and Andrew Sangster,
| former chief accountant in the valua-
| ton of public utilities in the DISTRICT,
testified as to their examination or the
| figures submitted by the company IN
support of its claim that the price OF gas
must be increased II the company Is not
to operate at a loss
SangsteTs analysis did not present an
estimate as TO the average increase he
would allow the company. but his al
lowances. with respect to several items.
particularly depreciation and taxes.
were more liberal.
11-Cent Increase Would Result.
If the commission should adopt the
figures submj ted today, irrespective
of the claims of the company, approx :
mately an 1l-cent increase in gas would
result.
The hearing was continued until 2
pm Saturday, when the commissions
experts will be cross-examined by at
torneys for the company. President
Howard S. Reside Of the company and
Attorneys ]. ]. Darlington and Benja-
min S. Minor were present when the
rate inquiry was resumed this morn
ing Corporation Counsel Conrad II.
Syme directed the examination of the
accountants.
Mr. Sangster said that he had found
the data submitted by the company as
to anticipated costs for 1918 to be
fairly correct He took the position.
however. that the estimate for mainte-
feet of gas was too high.
1t was his opinion that this allow
ance should not be more than 6.394
cents. He also thought the company's
feet for contingencies should be re-
duced to cents. He said the COM
pany had not allowed for receipts from
the sale to the government of tolurol.
which, he estimated, would amount to
$4,000 a year.
AS to the fairness Of this allowance
for the sale of tolurol. byproduct
used in the manufacture OF ammuni-
ton, there was some disagreement in
the testimony of the experts.
Botz stated that the tolurol plant had
not been operated during January, be-
cause of a shortage of oil. and that it
would be necessary to keep the plant
In constant operation II it were to in
crease the company's revenues to the
extent estimated by Sangster.
Estimate Was 8 Cents.
Botz's estimate for contingency was
3 cents, but his allowance for mainte-
nance was approximately a cent less
per thousand cubic feet than that sug-
gested by Sangster.
His statement as to the estimated
cost for 1918 gave 53.737 cents per 1000
cubic feet for operating expenses. 5
cents for maintenance. 3.677 cents for
depreciation, cents for contingencies
and ALB cents for taxes. for a total
cost Of $3.50 cents. From this amount
rol receipts, leaving total cost Of gas
Of 67.567. Returns at per cent for
interest on funded debt and dividends
would amount to 1870 cents, giving q
total of S6.2S7 cents the company must
charge on an average in order to meet
all demands made upon it during the
current year.
Since fling its application for au-
thority to increase rates the company
has sent to the commission notice to
tthe effect that there have been advances
not anticipated when the original ap-
plication was made. These advances,
lit was stated, have all but consumed
| the fve-cent contingency allowance
sought. The company requested imme-
diate action on its petition in order
that 1t might be able to meet increas-
ling burdens imposed by the war.