Evening star., 1918-02-10
SUGGESTS 9O-CENT
GAS RATE FOR CITY
Necessary for Company to
Meet Increased Costs, Mr..
Botz Estimates.
COMPARATIVE FIGURES
COMPARATIVE

ed upon to nav at the rate of not less
than 80 cents per thousand cubic teet
for gas if the public utilities commas
sion approves the estimate OF j. H.
Botz, one of its accounting experts.
that the gas company must charge an
average rate Of approximately 81 cents
in order to meet increased costs pro-
duced by the war and pay per cent
return on it's investment.
Mr. Botz explained yesterday that in
estimating an average rate ne TOOK
into account the reduced rate Of 20
cents, at which gas is now supplied to
the federal government. Individual
consumers pay at the rate OF 70 cents.
II tho government maintains this rela-
tive advantage, an average S6-cent
rate, Mr.. Betz explained, would entail
a charge to individuals of 80 cents or
more.
To Resume Inquiry Tomorrow.
After a three-and- a-half-hour cross-ex-
animation of Mr.. Botz and Andrew Sang
ster another of the commissions account
ants by Attorney j. j. Darlington Tor
| the Washington Gas Light Company yes
terday afternoon the inquiry into the
con1pany's application for authority to in
crease the price Of gas in the District
from as cents to $1.10 was adjourned.
to be resumed at 10 o'clock tomorrow
morning
The bulk Of the questioning dealt with
the allowances that have been suggested
for contingency, the company maintaining
that S cents per thousand cubic rect
should be allowed to cover costs OF this
character and Botz and Sangster taking
the ground that q charge of cents Is
sufficient
To Compare Cost of Products.
Attorney Darlington brought out the
fact that unexpected expenses incurred
by the company already have exceeded
the scent contingency allowance
sought. AS a result of statements
| made in this connection. Commissioners
Gardiner asked the commission ac-
| countants to prepare list of the cost
/ of the products used in the manufac-
ture of gas in January. 1918. as com
| pared with the cost of similar prod
ucts employed in January, 1917. This
request was considered to indicate the
! commissions purpose to determine to
| what extent the accountants estimates
| for 1918 costs had been sustained by
| the actual costs incurred by the COM
pany during the first month OF the cur
rent year.
Cross-examination developed the fact
that both the company and the commits
sion's experts had allowed approxi-
mately 3 cents as contingency item
to cover the increased costs of coal, oil
and transportation. The additional
cents sought by the company are to
cover such unexpected expenses as
1t was brought out. Sangster and
Botz contended that many Of the e1-
penses forced on the company this year.
such as the freezing of large number
of pipes, are unusual. and that they
should be offset by operating economies
rather than provided for in an increased
contingency allowance. Sangster ad-
mitted. however, that any rate adopted
for the current year should take into
account the unusual costs that the
company had been called on to meet.
"a, 5G3 Complaints Of Frozen Pipes.
In attempting to show that cents
for contin gencies is not sufficient al
lowance. Attorney Darlington brought
out the fact that in the. normal winter
months Of January, 1917, the company
adjusted 1851 complaints of frozen
services. at cost of $2,470. whereas
during January of the current year
there were 24,59S such complaints,
which were cleared at a cost of $23,69O
Other unusual costs referred to In
cluded the rental of cars to bring oil to
| the plant in Washington. necessitated
by the freezing of the river and the dis
continuance of barge service and the
cost Of carting coal in motor trucks from
the east station to the west station in
stead OF barg1ng 1T. OH costs were esti-
mated for 1918 on a basis of approxt-
ma tely cents gallon. but the pros
poets now are. it was stated, that the
company will be fortunate to procure
additional oil at cents.
Advance in Coal Has Effect.
AS for coal, the cross-examination
showed that fuel was obtained during
1917 on contract basis. az $4.55 a ton
sThe estimate for 1918 was based on this
price. Since then coal has advanced to
.65, which means an advance of ia
| cents per thousand cubic feet on this
| item alone.
| The company's estimate for 1918, it
| was further explained, was based on
| the assumption that the Washington
station could produce all the gas re-
| quired for the districts it furnishes
| However, the large demand in January
| made necessary the operation of the
| Georgetown station as an auxiliary to
the washington plant, which resulted
| in an increase in the cost of produce
| tion of .13S per thousand cubic feet
| Attorney Darlington attacked the es-
| innate of the commission accountants
/ that the company would realize $751;
during 1918 from the sale of toIuoI
He attempted to show by the cross ex-
| animation that such an amount could
| be realized only through constant oper-
alton of the touol plant, which has
| been shut down for some time on ac-
count of Il shortage of OIL