Evening star. [volume] (Washington, D.C.) 1854-1972, 1918-12-10
Costs $4,000 a Year, Hear
ing on Plea to Raise
Price Shows.
CHARGED ONLY 10 1000
CUBIC FEET; PUBLIC, 80
Testimony to Public Utilities
Commission on Application for
an Increase to $1.1O.

That the returns OF the Washington
Gas Light Company are about $55, 900
year less than they would be If
the District and federal governments
paid the same rate that local citizens
are required to pay for gas-9O cents
a thousand cubic feet--developed at a
hearing before the Public Utilities
Commission today on the company's
application to increase the price of
gas in the District to s1.1O per thou
sand cubic feet.
1t was brought out that the COM
pany has endeavored to wipe out this
discrimination as between the gov
eminent and Individual consumers.
Following refusal Of the governments
to meet the 90-cent rate, the company
has carried the case to the controller
of the Treasury, it was stated.
Limit Set by Congress.
The United States and the District
are buying gas at the rate Of 20 cents
a thousand cubic feet, a limitation
formerly established by Congress in
the appropriation bills. This limi-
tation. however, has been eliminated
from the last two appropriation meas
ures, it was pointed out.
While the commissions 90-cent rate
applied to Individual consumers, the
company, on account of the increased
cost OF manufacture of gas and the
fact that the commission had decided
a 9O-cent charge would be necessary
to enable it to earn 6 per cent on it's
,J,,n l.
and District governments on the 90
cent basis. The bills failed to receive
the "Ok's" of the various government
auditors to whom they were sub
mitted.
Robert O. Luqueer a consulting en-
gineer. the first witness introduced by
the company today, testified, in answer
to a question by Commissioner Brown
low, that had the company received 80
cents for the gas furnished the United
States and the District during the year
its receipts would have been approXi-
mately $4,000 greater.
Testifies as to Expenses.
Mr.. Luqueer, the principal witness
for the company. last spring. when the
price Of gas was increased from rs to
80 cents. testified at length as to the
actual experiences of the company
under the new rate.
Taking the first threemonths of the
year under the former 75-cent rate,
thte next six months on the 9O-cent
rate and estimating for the last three
months. Mr.. Luqueer presented fig
ures to show that the cost of gas at
the burner during 1918 will be SASH
761.03 as compared with a cost of
$1.775,53S.5 in 1917, an increase of
moro than a million dollars.
On Ha L11 t. T.
income, arriving at the figure of $685.
020.95 for 1918. as compared with
S642,948.30. for 1917, loss for this
year of about $4,000.
He said the average price received
for all gas sold for the nine months
ending September 80 was but S053
cents.
Allowing for eight-cent oil during
the coming year, an increase of Si.05
a ton in the cost of coal and the loss
the company will sustain in the cut
ting off of tolurol sales to the gov
eminent. due to the ending of the war.
Mr.. Luqueer estimated that contino-
ance of the present ninety-cent rate
would enable the company to earn
only 3.55 per cent on. its fair valua-
ton as established by the commission.
Difference Cited Would Mean Loss.
The difference between 355 and s
per cent returns would represent an
actual loss to the company in money
of about S255.o00. he said
Assuming the eight-cent oil and in
creased coal cost for next year. with
the loss in toluol sales, the company,
he continued, in order to earn per
cent on it's valuation. would have to
charge for gas at the rate of 97aa
cents per thousand cubic feet.
To set aside 9.S3 cents for mainte-
nance and general amortization, the
u.
Andrew Sangster, expert accountant
for the utilities commission at the last
gas rate hearing, and pay per cent
on the valuation, the company, Mr..
Luqueer continued. would have to
charge for gas at the rate $1OI4 a
thousand cubic feet. Such a rate, he
pointed out, would leave no margin
for emergencies.
Discussing probable future condf-
lions, the witness was of the opinion
that there Will be immediate consid-
cradle reductions in the sale of gas.
with ultimate reductions in the price
of labor and materials. He thought
the company. therefore. in the imiiie-
date future. would do reduced bust
ness. but have the same labor costs to
meet. If there should be 10 per
cent reduction in the amount of gas
sold. he estimated. it would increase
the cost Of the manufacture of gas by
dpouI - CchlS d lIlOuSduQ CUBIC 1eet.
Query by Mr.. Gardiner.
Commissioner Gardiner asked the
witness whether he or Mr. Sangster
at the former hearing. had made the
closest estimates as to conditions to
be experienced this year. Mr.. Luz
queer replied that Sangster had made
the nearest estimate as to the
amount of Increased business, but
that he had figured closest as to
costs
The hearing was attended by all the
officials Of the gas company and nu-
merous representatives of citizens as
sociations. Attorneys j. J. Darlington
and Benjamin S. Minor. for the COM
pany, examined Mr.. Luqueer. All three
District Commissioners and Conrad H.
SXme, general counsel for the COM
mission, participated in the question
ing.
William NICK. Clayton, representing
the public utilities committee of the
Federation of Citizens Associations,
also took part in the proceedings.
Evan II. Tucker presented a resolu-
ton, adopted last night by the North
east Citizens Association. protesting
against any further increase in the
price of gas.
After the company's case has been
presented the commission will intro
duce witnesses Of it's own and the