Evening star., 1918-11-21
Present Charges Not Enough
to Meet Expenses, Public
Utilities Commission Told.
$95,884.77 INCOME LOSS
SHOWN IN SIX MONTHS
Increase in Cost of Materials Used
in Making Gss Is Emphasized in
Company's Petition.

The Washington Gas Light Company
today again appealed to the Public
Utilities Commission for financial re.
lief. It renewed its petition Of De.
cember last for authority to sell gas
in the District at an average rate OF
$1.10 per thousand cubic feet.
The company in its petition shows a
net corporate income loss of $95.8S4.77
for the first six months operation un-
der the 90-cent rate allowed by the
commission last spring.
The application, filed this afternoon
is submitted also for the Georgetown
Gas Light Company. With respect to
this corporation the commission is ad-
vised that it's net corporate income
from all sources during the period
from January 1 to September 80, this
year, was insufficient by about $500
to pay operating and other expenses
and maintenance and interest on its
bonded and other Indebtedness.
- rs to 90 Cents Raise.
After hearings upon the original ap-
plication, the utilities board, March
Is last, issued an order permitting
both companies to charge rate not
exceeding 80 cents per thousand Gu
bic feet of gas furnished for lighting,
heating, power and other purposes to
private consumers in the District, the
previous rate having been rs cents.
Dar
the new schedule, from May 1 to Oc-
tober 81, inclusive, the company
states that, while the rate was fixed
at 80 cents, by reason of the low
price derived from sales of gas to the
United States and the District of CO.
the revenue from its total sales for
the year 1918 will be only about ar
average rate OF $500 cents per thou.
sand cubic feet.
The loss of $95.s84.77 is shown by
comparison Of the net corporate
to5er 81, under the ninety-cent rate
and the net corporate income during
the corresponding period of 1917 un-
der the seventy-ffve-cent rate, with
low cost of materials.
Cost Of Materials Increases.
The company calls attention to the
big increase in prices of gas-making
materials that have become effective
since the ninety-cent rate was adopted.
Mention also is made that the close OF
the war will mean the cutting OF
from it's annual revenues of about
$4,000 realized through the sale OF
toluol, a by-product, to- the United
States government.
The company maintains that the
present rate is greatly inadequate for
the proper operation of its plants
or to enable the company to maintain
it's credit.
The company refers to the order OF
the commission last spring. which
stated that the commission feels that
the fixing of a price for gas which
would yield approximately a 6 per
cent return to the company on the
commissions valuation of it's proper
ty will enable the company to sustain
it's credit and conduct it's business at
a reasonable profit"
Says 80 Cents Is Too Low.
BASED upon their operations under
conditions which had existed for more
states the petition, believed that the
rate of 80 cents was too low, and the
returns from such rate would be in
sufficient to enable the companies to
pay operating and other expenses
maintain it's credit and leave balance
equivalent te even approximately 6
per cent on the commissions valua.
tion of it's properties.
Nevertheless, in view of existing
conditions and desiring, by reason
thereof, to cooperate with the com.
mission, the gas companies have en-.
deavored to operate their respective
plants as to produce, if possible. the
commissions anticipated results from
90-cent rate"
After reciting the loss incurred un-
der the 90-cent rate. the petition con-
tinues:
I'm this connection the commission's
attention IS respectfully invited to the
fact that in the hearings on it's appli.
cation for increase of rate from 7E
cents per thousand cubic feet the
estimates for oil after the expiration
of it's then existing contracts was OF
the basis Of cents.
Price Of Oil Advances.
'The cost of oil for the first foul
months Of 1918 was between 4 and {
cents per gallon, but in May the cost
went up to 7.30 and increased in June
and July until, in August, the cost
reached 8 cents per gallon, and has
since continued at that figure. And